Apprenticeships and traineeships are gaining momentum in Australia, with a new report from the National Centre for Vocational Education Research (NCVER) revealing positive trends for the September 2022 quarter.
What the NCVER Apprentices and Trainees Report Reveals
The NCVER Apprentices and Trainees report revealed 402,245 apprentices and trainees in training, a 14% surge in apprenticeship and traineeship numbers in the September quarter of 2022 compared to the same period in 2021, with completions increasing by 33.4%.
The spike in the number of in-training apprentices and trainees could be attributed to factors, such as new government initiatives and subsidies, the availability of training opportunities, and the growing need for skilled workers in multiple industries.
The report also highlighted a rise in completion, employment outcomes, and satisfaction with off-the-job training.
Trade Occupations Drive Completion Rate Spike
According to the NCVER Apprentices and Trainees report, there were 24,655 apprentice and trainee completions in September 2022, representing a 33.4% increase from the same quarter in 2021. The rise in completions was driven by trade occupations, increasing to 13,130 or 46.6% from the September quarter of 2021. Non-trade fields saw an increase in completions to 11,505, up by 20.8%.
This rise in completions in trade occupations could be attributed to the high demand for skilled trade workers across various industries. The pandemic has highlighted the need for essential trades, such as electricians, plumbers, and builders, and the increase in completions could help address the skills shortage in these areas.
Read our article on the Latest Construction, Plumbing, and Services Training Package Updates here.
Strong Employment Outcomes for Apprentices and Trainees
The NCVER Apprentices and Trainees report underscored strong employment outcomes for apprentices and trainees. In 2022, the employment outcomes for apprentices and trainees remained strong after completing their apprenticeship or traineeship. The recent NCVER report showed that 94.9% of trade completers were employed after training, like the previous year’s figure. Of those who finished in non-trade occupations, 89.3% were hired after the internship, up 1.7 percentage points from 2021.
The report also included the outcomes of apprentices and trainees who failed to complete their apprenticeship or traineeship. Surprisingly, the data showed that many non-completers were still employed after training. 84.2% of trade non-completers and 84.3% of non-trade non-completers were onboarded after training.
Decline in Commencements Since June 2022
However, the number of in-training apprentices and trainees has dropped since June 2022. The report attributed the decline to the decline in commencements in the September quarter of 2022, down by 41.3% compared to the same quarter in 2021.
NCVER Managing Director Simon Walker attributed the decline in commencements to changes in wage subsidies provided to employers of apprentices and trainees through the Australian government.
As noted in the report, all industry sectors observed a decrease in commencement numbers.
Steady Off-the-Job Training Satisfaction Rate
Satisfaction with off-the-job training remained steady in 2022, with 87.2% of trade completers and 89.3% of non-trade completers satisfied overall with their off-the-job training.
The consistent satisfaction rate is a positive indication of the quality of training offered in the VET sector.
Implications for RTOs and the VET Sector
The surge in apprenticeship and traineeship numbers allows Registered Training Organisations (RTOs) to increase enrolment and revenue.
The increase in completions, especially in trade occupations, indicates a potential demand for skilled workers.
However, the drop in commencements due to changes in wage subsidies highlights the need for RTOs to be agile and adapt to changes in government policy.
By incorporating an interactive 10-year time series chart into the NCVER’s Apprentices and Trainees in Training report, RTOs like you can gain a valuable resource to track apprenticeship and traineeship data trends over the past decade.
This data can then be used to make informed decisions about developing new training programs or expanding services into different trades or non-trade occupations.
Accessing this level of historical data is crucial for organisations seeking to stay up-to-date with the latest industry trends and deliver high-quality training services.
Conclusion
The NCVER report provides a promising outlook for the vocational education sector in Australia, with a surge in apprenticeship and traineeship numbers and an increase in completions.
As an RTO, you can leverage this opportunity to provide quality training and education to meet the demands of the workforce.
However, you must also remain adaptable to changes in government policy to ensure continued growth and success in the industry.
With the NCVER providing regular updates and insights, the report enables RTOs to deliver the latest VET trends and insights to their students and stakeholders, helping them stay informed and up-to-date.
For enquiries, contact us through the form.
