New data from the National Centre for Vocational Education and Research shows building and construction apprenticeship commencements have fallen 22 per cent in the year to December 2023.
Only 41,935 people commenced a building and construction-related apprenticeship in 2023, down from 54,035.
Despite a sizeable workforce of over 1.35 million people, the industry is facing acute shortages with an annual exit rate of 8%, which is currently only being replaced at half of that rate.
Prolonged construction labour shortages will lead to a $57 billion reduction in Australia’s GDP over the next five years.
Industry sees that promoting varied and rewarding pathways to school-aged students, their parents and careers advisers and overhauling the funding for and quality of careers education in schools is needed.
Supporting schools to adopt better integrated vocational education and training into the school curriculum especially in early high-school years and encouraging secondary school students to undertake their White Card training needs to be set in place.
Expanding support for women in building and construction programs while reintroducing an incentive system with commencement and completion bonuses to apprentices and employers would also help to boost numbers as would a tiered wage subsidy that supports mature-aged apprentices.
Master Builders CEO Denita Wawn said, “The role of improving our domestic pipeline of workers is critical to overcoming the housing crisis.
“For decades, we have seen the cultural erosion of trade apprenticeships with students being pushed towards the university system.
“Apprentices are paid to learn, unlike their higher education counterparts who pay to learn.
“The Federal Government made a range of positive announcements aimed at attracting more apprentices into the building and construction industry in the recent Budget.
“We would like to see these measures expanded with stronger support from states and territories,” Ms Wawn said.
See the Future of the workforce: apprentices in building and construction report.