Australia’s apprenticeship system has long been a cornerstone of workforce growth and opportunity, providing individuals with a clear pathway into rewarding, skilled careers. While participation rates have fluctuated in recent years, the current focus on productivity and skills shortages presents a timely opportunity to reaffirm the value of apprenticeships to Australia’s future.
A new paper and online Tool released by the Global Apprenticeship Network Australia (GAN Australia) highlights the significant economic and social advantages of a strong apprenticeship system. Comprehensive cost-benefit modelling across multiple occupational sectors shows that employers, individuals, governments, and the wider community all benefit—directly and indirectly—when apprenticeships are well supported.
“Apprenticeships don’t just build a skilled workforce,” said Gary Workman, Executive Director of GAN Australia. “They also strengthen the fabric of our society, deliver enduring value, and foster resilience for future generations.”
The analysis reveals that while the long-term returns are clear, employers often shoulder the greatest burden in the early stages of training. Under current arrangements, employers are expected to absorb the upfront costs during the first 12–18 months of an apprenticeship, with no guarantee of completion. Productivity gains typically don’t emerge until the second year of a four-year apprenticeship.
Currently, Australian apprenticeship commencements are at their lowest level in over 20 years. Completion rates hover at around 55% for directly employed apprentices, and only about 10% of employers nationally participate in the apprenticeship system. “These figures show that something needs to change,” Mr Workman said. “Without stronger support, the system risks failing to deliver the skilled workforce Australia urgently needs.”
“This is where governments could step in to better support employers,” Mr Workman added. “Targeted assistance in the early phase would reduce the risk for businesses and encourage more employers to take on apprentices, ensuring Australia meets its future workforce needs.”
Key Messages
- Cost-effective productivity: Australian Apprenticeships are one of the most efficient ways to lift productivity. For every $1 invested over a 4-year period, employers can see a return of up to $1.40, while governments and the wider community benefit by up to $4.76.
- Time to benefit: It takes approximately 1.6 to 2.6 years into a 4-year apprenticeship for employers to see a financial return.
- Strong earnings potential: Over the duration of a 4-year apprenticeship, an individual can earn more than $210,000 with no training debt.
- Pathways to careers: On average, 93% of apprentices secure full-time work in their chosen trade after completing their apprenticeship.
- Shared benefits: Governments, industry, and communities gain the most from supporting apprenticeships. Increased government financial support for employers, particularly in the early stages, can help offset initial costs until apprentices become productive.
- Group Training model advantage: Investing in the Group Training model improves apprenticeship completion rates and provides opportunities for people from diverse backgrounds and communities and supports the risks for small to medium sized businesses.
Media Contact
Gary Workman, Executive Director, Global Apprenticeship Network Australia
Mobile: +61 425736 036 Email: gary@gan-australia.org Tel: 03 9639 3955 Web: gan-australia.org
