This research examines the 'psychological contract' or the unwritten expectations of employers and employees in an employment relationship. The particular aim of this study was to discover whether mismatched expectations have any effect on retention in apprenticeships and traineeships. Overall, there was a very high level of agreement on the obligations of the two major parties and so mismatched expectations turn out not to be the explanation for high attrition rates. But paying greater attention to the areas perceived as deficient, such as employers providing specific time for training, fair treatment and resources to do the job, may be a means of improving retention.
Looking at apprentice and trainee data and employment data back to 1995, we find that declines in apprentice commencements lead declines in total trades employment by four quarters, whereas declines in trainee commencements appear to lag declines in employment in non-trade occupations. Based on this historical relationship, the reduction in apprentice and trainee numbers suggested a much larger decline in employment than eventuated. The low proportion of redundant apprentices who were able to resume training is concerning. However, because apprentice and trainee commencements rebounded so quickly, we anticipate only a minor interruption to the supply of tradespeople.
This paper updates an earlier paper by Karmel and Mlotkowski and looks at how the probability of getting a job, in addition to wages, impacts on completion rates. It finds that for trade apprentices the premium (or extra wage completing an apprenticeship brings) attached to becoming a tradesperson is a significant factor, whereas for non-trade trainees the training wage matters more. It also finds that the probability of employment for an apprentice or trainee on completion is greater than if they drop out; this particularly affects completion rates for trades and females in non-trade occupations. Finally, the economic downturn significantly increased the attractiveness of apprenticeships and traineeships.
This research investigated pre-apprenticeship training in Australia through a variety of research methods—keyword searches, lists of prescribed pre-apprenticeship courses from state and territory contacts, and a unit record enrolment file. An analysis of this data found that there were ten nationally accredited and 24 training package courses with pre-apprenticeship activity. There were approximately 64 800 course enrolments in the identified pre-apprenticeship courses in 2009. This can be compared with 2007 when there were 50 700 course enrolments in these courses. The major findings were that over half of pre-apprenticeship course enrolments were within the engineering and related technologies field of education and around a third were within the architecture and building field; and the majority of course enrolments were within certificate II courses.
Pre-apprenticeship programs have attracted a great degree of interest from employers and training providers as one means of increasing apprentice satisfaction and completion rates, by providing an introduction to the trade. We test this proposition using data from the 2010 Apprentice and Trainee Destination Survey. We find that the impact of pre-apprenticeships varies with occupation and prior education level. Pre-apprenticeships increase the likelihood of completion for apprentices in the construction, food and electro-technology trades but reduce completion rates among those already holding a certificate III or higher qualification and some other categories of apprentices.
This paper looks at recent economic downturns and finds that there is little convincing evidence of persistent skill shortages in the trades. There is no evidence of persistent skill shortages across downturns in the construction, automotive and engineering trades. Declining numbers of apprenticeship completions led to persistent shortages in the electrical trades during the 1990s and 2000s but apprenticeship completions for this trade have now recovered to pre-1992 levels. Very high job churn creates the perception of persistent skill shortages in the food trades and in hairdressing. Many food tradespersons and hairdressers swap employers but remain in their occupation.