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 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.