Edition 73, December 2009

Apprenticeships and traineeships in the downturn

Apprenticeships and traineeships in the downturnThe National Centre for Vocational Education Research has released a new publication on how the economic downturn is impacting on apprenticeships and traineeships.

The publication shows that it is apprenticeships which have been hit by the economic downturn, rather than traineeships. The latest NCVER statistics on apprentice and trainee activity for the March quarter 2009 found that the number of people commencing a trade apprenticeship decreased by 21.9%, compared with the same period in 2008.

The trades in which commencements have been most affected are automotive and engineering, construction, electrotechnology and telecommunications, and the wood trades. Traineeships, on the other hand, increased by 1.6%.

NCVER has undertaken a range of work recently to find out about apprenticeships and traineeships, with a view to assessing how they will be affected by the financial downturn.

In a recent report Apprenticeships and traineeships in the downturn, Tom Karmel and Josie Misko argue that the financial crisis will have less impact on traineeships than apprenticeships. This is because traineeships attract higher wage subsidies, are shorter in length, and are in industries which are less affected by the economic climate. The authors predict that more people will complete their training during the downturn, because a tighter labour market presents them with less choice of jobs.

The report also argues that the focus should be on commencements rather than completions, and that policies need to distinguish clearly between apprentices and trainees.

An upcoming Longitudinal Surveys of Australian Youth (LSAY) briefing paper, Young people in an economic downturn, reports that generally young people are undertaking more education and training during the recession period. Predictably, however, fewer are commencing traditional trade apprenticeships because fewer are on offer.

There seem to be some interesting differences for young people in this downturn compared with previous recessions. In particular, employers are tending to cut back working hours rather than laying off staff altogether. This is probably due to employers fearing a repeat of the skills shortages experienced in the past decade.

To be alerted when Young people in an economic downturn is available, subscribe to NCVER News at www.ncver.edu.au/newsevents/subscribe.html

Apprenticeships and traineeships in the downturn is available at
www.ncver.edu.au/publications/2197.html

 

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