A $26.2 billion boost to the Australian economy is within reach and it starts with putting more people into apprenticeships that deliver the skilled workforce the nation urgently needs.
An increase of 320,000 additional apprenticeship completions over the next decade would generate $26.2 billion in total economic benefits, according to the MEGT Productivity Prospectus 2025.
Commissioned by MEGT and developed by Deloitte Access Economics, the Productivity Prospectus draws on national labour market data, economic modelling, and apprenticeship outcomes to forecast the long-term economic impact of expanding apprenticeship completions across Australia.
This modelling places skills development particularly apprenticeships at the centre of Australia’s productivity recovery.
The projected gains include both higher individual earnings and broader economic impacts, such as increased productivity and tax revenue.
The report also estimates that achieving this uplift would deliver a threefold return on public investment, driven by sustained employment, improved wages and reduced skill shortages across the economy.
The Productivity Prospectus identifies a clear connection between declining productivity and workforce capability.
Labour productivity has fallen by over 6% since March 2022, while real wages and household incomes have weakened over the same period.
As labour shortages persist across the country, the most acute pressure has been placed on technicians and trade roles.
These are precisely the roles where apprenticeships are beneficial, creating a targeted pipeline to fill the gaps that matter most.
Apprenticeships provide a direct link between training and employment, with most apprentices entering roles directly related to their training.
This strengthens the connection between education outcomes and labour market demand, reducing mismatches between skills supply and industry needs.
By linking funding directly to workforce needs, the model strengthens the pipeline of skilled workers entering high-demand occupations.
It also ensures that training remains practical, targeted and relevant to real job conditions, closing the gap between qualification and capability.
The economic modelling makes the opportunity clear and expanding apprenticeship participation delivers measurable gains across earnings, employment outcomes and workforce productivity, painting a compelling picture of what a more apprenticeship-led economy could look like.
The findings from the Prospectus position apprenticeships as a central economic strategy.
Only a small proportion of Australian businesses currently participate in the apprenticeship system, further limiting the pipeline of new entrants into priority trades.
Increased completions lead to higher earnings, stronger employment outcomes and improved workforce capability.
The scale of the projected $26.2 billion benefit reflects the speed at which skilled workers contribute to production and the multiplier effect of higher productivity across industries.
Major Training delivers tailored training solutions for each apprentice, aligning to the unique needs of each business and enabling organisations to focus on what matters most through a clear and strategic approach to workforce development.
To find out more about Major Training’s tailored training solutions visit major.edu.au/employers-employment-services-schools/tailored-training-solutions/.
