Home News The rising cost of apprentice cancellations
Thursday, 06 October 2011 00:00

The rising cost of apprentice cancellations

certiiengineeringMid this year, The National Centre for Vocational Education Research (NCVER) estimated the non-completion rate for trade apprentices was 44 per cent. This figure takes into account apprentices and trainees who change employers during the course of their training.

Such high attrition rates in the trades are costing employers and the government millions.  

Deloitte Access Economics research commissioned by the NSW government estimated the combined losses in NSW last year at over $180 million. Employers lost $124 million, the state government $33 million and the Commonwealth $26 million in payments and expenses.

 

 
So why are completion rates so low?

Research highlights relatively low apprentice wages as a major contributing factor towards the high attrition rates. While mismatched employer/apprentice expectations and lack of flexibility in the training structure are also causing many drop-outs.

What can we do to help reverse the trend of rising non-completion rates?

Continued collaboration between employers, industry stakeholders and government is essential in an effort to combat this very complex issue.

The government has promised to fund mentoring services to better support apprentices during their training.

Many employers are offering apprentices the opportunity to fast track training to achieve higher pay rates while coupling this with more attractive working conditions to not only encourage employee loyalty but position themselves as an employer of choice.

Tailored, one-on-one training can also go a long way towards supporting apprentices who may be experiencing literacy or numeracy issues, or who are located in remote locations far removed from classroom based training campuses.

Apprentices can tap into a wide range of incentives, support and information services before they choose to cancel their employment contract. Apprentices can call the Apprenticeships Info hotline on 1800 210 210, or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

We are very interested to hear your feedback on apprenticeship completions and strategies that have worked for your business and apprentices. Please leave your comments so we can continue this important discussion.

 
 

Comments  

 
+2 #3 Chris 2012-01-17 14:59
I was sacked from my apprenticeship in my 3rd year, just about to begin my 4th year, in Oct 2011. I took my employers to Fair Work which is still in the works. I have had no success in obtaining another apprenticeship so that I can complete my last 12 months, so I have had no other choice but to go to the mining sector as a truck driver. How employers think they can just sack apprentices and destroy their futures is beyond me. Something needs to change !!
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+3 #2 Clayton 2011-10-06 14:49
On Television the other morning, Koshi was discussing that low wages may be contributing to the fall in completions. In my area in Toowoomba and west, the completion rates are well above the national average- >60%....Maybe the mining boom and the two speed economy has something to do with these improved figures in the West.....
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0 #1 dj carman 2011-10-06 14:25
Man give me back my apprenticeship any day, I loved it. I got cand course they ran out of work. Why would anyone drop out?
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