Skills supply to the trade industries 1995-1999

Introduction

The purpose of this report is to provide information on trends over the years 1995 to 1998 in the realm of contracts of training in vocational education and training in the trade industries in Australia. Preliminary indicative information for 1999 is also provided for the trades generally. This information will be used to provide an indication of where skill shortages may be occurring or likely to occur in relation to specific trade industry areas.

The main trade industries for which apprentice and trainee data are considered in this report are:

• Electrical
• Building and construction
• Automotive manufacturing/retailing
• Manufacturing
• Hospitality, and
• Retailing.

Comparisons of apprentice and trainee numbers are also made with projections of employment growth in the trade industries.

Provision of this information will help to identify skill shortages for, or within, particular trade industries or whether current shortages in trade industries are likely to be overcome in the short-term.

Factors including widespread technological changes, the requirement of trade industries for more highly skilled and productive apprentices, increased competition in world trade and the need to improve the transition from school to work have had a major impact on the employment-based training system in Australia.

The government has reformed the apprenticeship and trainee system by making it more flexible and responsive to employer needs and ensuring that the highest quality training is provided. The new training arrangements covering apprenticeships and traineeships are collectively known as New Apprenticeships which the government began introducing from 1 January 1998.

When all contracts of training are considered, that is, apprenticeships and traineeships in both trade and non-trade occupations, greatest growth in overall numbers occurred between 1995 and 1996. Also, changes in the age profile of apprentices and trainees have been evident since 1993/94 when adults were able to access traineeships for the first time. However, vast differences are evident in number and profile information between trade and non-trade occupation apprenticeships and traineeships.

This report focuses on providing more detailed information on such factors as trends in numbers in training, commencements and completions, in relation specifically to trade occupation contracts of training (that is, predominately apprenticeships) by each of the trade industry areas: electrical, building and construction, automotive manufacturing/retailing, manufacturing, hospitality, and retailing. This information is provided in the context of relevant economic and labour market information.

The employment forecast information utilised in this report is based on the data provided by Chris Murphy and Justin Douglas of Econtech in their report commissioned by the NCVER entitled The Outlook for Jobs.