Apprenticeships in Australia are more popular than ever, with numbers having grown rapidly in the last five years to reach 275 000 in June 2000 ^(a) . Numbers have continued to increase reaching around 295 000 in December 2000.

The rapid expansion of the system beyond the traditional trades, far from being a problem, means that new apprenticeships now reflect the structure of the Australian labour market better than ever before.

The opening up of the system to people of all ages has not meant a reduction of opportunities for young people. It means Australia’s apprenticeship system is adjusting to global changes in the nature of work and the rapid ageing of the population better than the apprenticeship systems in any other countries at present.

The employment retention outcomes from apprenticeships, traineeships and new apprenticeships are very good. Over 90% of new apprentices are employed three months after completion of their apprenticeship.This compares very favourably against the employment outcomes of TAFE and university graduates, which are nevertheless also very good.

The long-term labour market prospects of apprentices at the equivalent of Certificate III level or higher are second only to university graduates in terms of the higher rates of employment and the lowest rates of unemployment. Qualified apprentices have the highest rates of full-time employment and self-employment in Australia.The employment outcomes of people who have done a shorter traineeship at Certificate I or II level are not as good but are better than those of people who have no post-school qualifications.

The analysis suggests there is potential for the size of the system to grow to over 400 000 apprentices. National action to target growth in the apprenticeship system to higher skill areas of the labour market, particularly in the associate professional and technician occupations, is proposed.