Apprentices aren't what they used to be, or are they?
This conference paper was presented to the Third International Congress on Technical and Vocational Education and Training, 13–16 May 2012, in Shanghai. It argues that there are two key factors behind Australia's good record of employment for young people: high levels of post-school education with the consequence that there is not a large cohort of people in their mid-to-late teens flooding on to the labour market; and a flexible education system which gives individuals multiple choices.
This paper aims to explain the extent to which variation in apprenticeship completion rates can be attributed to factors relating to 'culture' of the employer and apprentice.
This paper was a keynote address at the AVETRA conference held in Canberra in April 2012. Karmel notes that industry is arguably the key stakeholder in the Australian vocational education and training (VET) sector and discusses six areas of research which raise questions about VET and industry, either in terms of how public training funds are allocated or the educational principles on which VET is based.
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.
In this 30 minute podcast, Steve Davis talks with Tom Karmel, Erica Smith and Damian Oliver on insights from research into apprenticeships.textInterested in the story behind the numbers, Tom discusses the findings from his work on individual completion rates that show occupation and employers' size matters, with the implication being that the relationship between employer and apprentice is critical. Erica talks about the all too often unspoken expectations of apprentices and employers—the psychological contract. She finds that writing down these expectations at the start of an apprenticeship does help all parties. Damian examines whether pre-apprenticeship programs deliver on their promise of improved retention rates and finds their impact varies by occupation and prior education level. Implications for policy-makers and training providers are drawn out throughout the podcast.
This overview provides a brief summary of the report, by Chris Ryan. It describes how Ryan analysed the range of pathways available which offer genuine alternatives to completing secondary school. It finds that for those students who run the risk of dropping out, the best pathway for males is completing an apprenticeship, whereas for females completing Year 12 provides the best outcomes. Longitudinal Surveys of Australian Youth (LSAY) data are the source of these findings.
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.
Low completion rates for apprentices and trainees have received considerable attention recently and it has been argued that NCVER seriously understates completion rates. In this paper Tom Karmel uses NCVER data on recommencements to estimate individual-based completion rates. It is estimated that around one-quarter of trade apprentices swap employers during their apprenticeship. Taking this into account, Karmel estimates completion rates for individuals, ranging from 39.2% for the food trades to 64.2% for electrotechnology and telecommunications trades workers. He notes that employer churn is an issue, with the worst occupations being hairdressing and the food trades.
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 was prepared for the Australian Government's National Resources Sector Employment Taskforce, which was created to investigate the extent to which skill shortages might impact on the development of the resources sector. It applies historical apprenticeship commencement rates to population projections to provide an estimate of the number of tradespeople likely to be working in the resources sector between 2010 20 at a detailed level and by region.
This paper was presented at the 2009 Economic and Social Outlook Conference, 5-6 November at the University of Melbourne. It takes a sceptical view of the push for 'green skills', arguing that skills required in the labour market evolve relatively slowly, and that the way business operates is driven by changing costs, new technologies and new regulations, with sustainability being only one of many factors.
The NCVER Apprentice and Destination Survey collected, among other things, data on reasons for not completing an apprenticeship or traineeship. This paper finds that poor working conditions or non-sympathetic bosses or workmates have an immediate effect for many. By contrast, the desire to do something different (such as study at university) or better (such as getting a better paid job) remains constant throughout the duration of the training contract.
In this interview, Steve Davis talks with Tom Karmel about his report 'Apprenticeships in the downturn'. Apprenticeships have a very long history in Australia, building on the traditions of the medieval guilds. The essence of the apprenticeship is the contract of training--a legal contract between an individual, an employer and a training provider. The defining characteristic is the combination of employment and training. The purpose of this paper is to describe what we know about apprenticeships and traineeships, with a view to assessing the likely impact of the current economic downturn on them.
The purpose of this paper is to describe what we know about apprenticeships and traineeships, with a view to assessing the likely impact of the current economic downturn on them.
This report examines the costs that both employers and apprentices incur for undertaking training in the plumbing and electrical industries. The importance of understanding costs is fundamental. Employers will not take on apprentices if the cost is too high, and prospective apprentices will not undertake an apprenticeship if the future benefits (increased wages) do not outweigh the immediate costs to them. The research found that the apprenticeship model involves a substantial financial commitment from employers, and apprenticeships are more attractive to young people and will remain unattractive to older people, unless the premium paid to qualified tradespeople is substantial.
School-based apprentices and trainees have recently been given more prominence as an element of vocational education and training in school, partly as a response to skill shortages in a wide range of areas. The purpose of this paper is to provide data on school-based apprentices and trainees to enable a judgement to be made about how this policy push is unfolding. The number of school-based apprentices and trainees is small but growing rapidly, numbers are concentrated in retail and hospitality training packages. Completion rates are lowest in the trades.
Trade apprenticeships in Australia from 1967 to 2006 are modelled in this paper. These models are used to understand how apprentice numbers in the trades respond to changes in labour market conditions. The models also allow commentary on the impact of recent government policy initiatives on trade apprentices. The paper finds that some trade apprenticeships are particularly sensitive to labour market conditions; that historical relationships between apprenticeship numbers and the labour market in the majority of occupations have broken down in the last ten years; and that government initiatives have been unable to counteract completely this trend.
Vocational education and training (VET) is much more important to young people than might be immediately apparent. This paper focuses on how young people participate in vocational education and training, what they study and their outcomes. Of particular note is the importance of VET for those young people who do not proceed on the conventional academic path of 12 years of school followed by university.
This paper models completions for traditional apprenticeships on the basis of commencements from 1995 to 2005. These models are used to understand the dynamics of the relationship between commencements and completions in order to predict the number of future completions. On the basis of the models, it is expected that completions will increase in the future. The models allow the paper to comment on the variation in completion rates across states/territories and changes in them over time.