Skilling Australia for a better future: supporting apprenticeships through COVID-19

To gain a better understanding of the impact of [Coronavirus Disease 2019] COVID-19 and the current trends in apprentice employment in real-time, Apprenticeship Support Australia NSW (ASANSW) undertook research with employers and apprentices. This report summarises the findings of this research, analyses the consequences of 'doing nothing' and puts forward a set of key recommendations to address the issues uncovered. The recommendations proposed by Business NSW in this report are guided by our extensive experience within the Australian Apprenticeship Support Network (AASN). They are also...  [+] Show more

To gain a better understanding of the impact of [Coronavirus Disease 2019] COVID-19 and the current trends in apprentice employment in real-time, Apprenticeship Support Australia NSW (ASANSW) undertook research with employers and apprentices. This report summarises the findings of this research, analyses the consequences of 'doing nothing' and puts forward a set of key recommendations to address the issues uncovered. The recommendations proposed by Business NSW in this report are guided by our extensive experience within the Australian Apprenticeship Support Network (AASN). They are also guided by our independent policy research and advocacy, which represents more than 25,000 businesses. Modelling in this report is undertaken on the basis that Australia is on the road to economic recovery. If this proves not to be the case, it is likely that the actual numbers will be far worse than our projections.

This research predicts that, without additional intervention beyond 30 September 2020, the number of apprenticeship commencements will reduce by around 36 per cent in 2020 compared to 2019. The Supporting Apprentices and Trainees (SAT) and JobKeeper programs have been crucial in stemming the number of cancellations and suspensions of apprentices already in-training. However, more than 30 per cent of apprentices have still been negatively affected by the pandemic, with Year 1 and Year 2 apprentices bearing the brunt. The report argues that the combination of reduced commencements with a potential apprenticeship cancellation rate of around 20 per cent after the cessation of SAT and JobKeeper on 30 September will be catastrophic for the availability of skills in the future. This will have a lasting impact on business viability and future jobs. With the number of apprentices not recovering to pre-COVID levels until 2025, at the earliest, businesses will be left facing a significant shortfall in the availability of skilled workers at a time when the economy is likely to rebound. It is argued that Australia must take immediate steps to increase commencements and reduce the impact of COVID-19 on those already in training. In this report, Business NSW makes four recommendations to Government to focus on commencements and deliver a commensurate increase in completions.

Edited excerpts from publication.