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A skilled workforce is essential for greater productivity. We need to take a fresh look at our skills training system, because it needs to be improved. A key issue is the reform of the apprentice system.
Currently when there is an economic upturn and a demand for skills, it can take four years or more to train more workers. In addition, we know that half of those who start apprenticeships do not complete them. We also know why that is, yet we keep tinkering with the issues instead of changing the out-of-date apprenticeship model of training for skilled trades.
Three significant reasons for high incompletion rates are: poor wages for apprentices compared to pay in semi-skilled jobs; poor training on-the-job in many instances; and the inability of contractors to guarantee to maintain an apprentice over four years, because contracts end whenever there is a downturn. Contractors need to go where the work is available. A contractor often cannot afford to carry a first-year apprentice, who may require additional supervision.
There has also been an increase in private providers running short courses in specific skill areas, rather than providing broader trade training. While these courses can get people into narrowly defined job roles quickly, the result is people who often know only a specific way to do a specific task using specific equipment. They generally lack the breadth of knowledge and understanding to transfer to other related tasks.
The apprenticeship model dates back to the pre-industrial period where members of guilds would take an apprentice into their household and train them over many years. With the introduction of public vocational education, current apprenticeships typically take three or four years to complete. Consequently, when there is an economic upturn and a demand for skilled labour, it can take four years or more to recruit and train a skilled tradesperson. Another factor is that with an increase in the complexity of technology, most trades require far more numeracy and literacy and IT skills than they did just a few decades ago. Currently, apprenticeships can start after ten years of high school. People leaving in year ten do not necessarily have the advanced IT, numeracy and literacy skills they need.
A New Skills Training Model
We need a new skills training model if we are to develop in a timely manner the skilled work force that we need today. A tripartite commission should consult with employer groups, trade unions and trade associations, and with TAFE and government, to refine a new model. Basically, the aim should be to have fully trained skilled workers in the work force in a maximum of two years. This model requires the refinement of today’s so-called pre-apprenticeship model. For skilled trades, entry should be from year twelve. In the senior years of secondary schooling, genuine applied maths and workplace literacy should be offered along with applied IT and other technology skills. We also need civics so that skilled workers have a broader understanding of the importance of productivity, and respect for our rights and values. Then should follow a substantial period of full-time training. The length would depend on the trade. For example, electricians and plumbers might need more time than tilers or welders. These skills should be offered by TAFE, and be followed by a structured placement with employers, paid for and regulated by government. Trainees might be rotated across several credentialed employers to obtain broader experience. For example, in the building trades, trainees might rotate across three employment locations to experience high rise construction, house building, and renovation work. These placements should deliver industry experience that is independently assessed against competency standards, with employers paid on the basis of results. There might then be a short capstone period back in TAFE where students consolidate their experiences, fill in any gaps, and top up their knowledge before being available for employers to hire as skilled workers on good wages.
Increased productivity requires investment in developing, in a timely manner, the skills and abilities of our workforce. Such investment by government can deliver handsome productivity returns.
Ralph Catts,
September 2025
Dr Ralph Catts is a retired academic and former TAFE Principal. His academic research both in Australia and Scotland focused on access to information, education, and employment for disadvantaged communities. In the 80’s he represented Australia at the OECD Education Committee, and more recently has been a consultant with UNESCO. He is a Fabians member.
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While the system is conceptually fine in combining work and formal training it has failed not only because of the length of training time but
1 The labour market has changed and become more diverse yet we still treat apprenticeships as homogenous. Compare for example the size and nature of employers, the labour market and training required for bricklayers who generally work in small gangs to a maintenance fitter in a large factory with complex technology, constantly changing.
2 There have been constant shortages of trades workers for at least 25 years and the intake as a proportion of the trade workforce in many trades is at the lowest level ever. In some trades annual completions are about 1-2% of those working in that trade.
3 We need to look at school leavers and mature entrants differently, especially as the the mature age intake has crowded out school leavers. We have an opportunity to link the trade training of school leavers with combined school nad VET programs
4 We are not preparing our apprentices for changes in technology and workplaces that are upon us. We need deed general skills, adaptability and flexibility.
5 As a short term response to current shortages we are not using the migration system efficiently.
Much of these points were covered in my submission to the Strategic Review of the Australian Apprenticeship System. All we got from that review was more subsidies which will make only a marginal difference. I agree with Ralph Catts we need a more fundamental look at how we train for the trades
Peter Henneken AM