The Victorian Chamber of Commerce and Industry is concerned at the 38% decline in apprenticeship and traineeship commencements in a four-month period across 2024-25 compared to the same period in 2023-24.

The Chamber has seen that the drop in new apprenticeship commencements is most pronounced in carpentry and plumbing. These areas are essential in building a skilled workforce, transitioning to net zero and meeting housing targets.

Additionally, there has been a significant drop in commercial cookery, retail, hospitality, hairdressing and engineering fabrication apprenticeship and traineeship commencements.

Apprenticeships and traineeships remain one of the primary pathways to developing highly skilled and technical occupations, and as Australia invests $524 billion in planned infrastructure projects, these skills will be urgently needed to power the economy forward.

The Victorian Chamber is proposing a two-tiered incentive scheme aimed at alleviating the possible financial burden placed on employers. The proposed scheme includes:

• For small businesses: Incentives of $15,000 per apprentice, structured over the apprenticeship period to include an initial lump sum of 35% of the incentive at commencement, followed by 25% at the end of the first year, 25% at completion, with progress payments of five per cent annually in years two to four.
• For medium-sized businesses: Incentives of $10,000-$12,000 per apprentice, similarly structured.
• For large businesses: Targeted project-specific funding to support apprenticeships within their supply chains, reinforcing the critical role large employers play in mentoring and supporting apprentices.

“The decline of apprenticeship starters from last year to now is significant and a massive concern. The skilled workforce crisis is here, and it must be addressed. The 38% year-on-year reduction is more than worrying. as apprenticeships are crucial to ensure our workforce meets our growth needs,” Victorian Chamber of Commerce and Industry chief executive Paul Guerra says.