Australia is currently facing a significant productivity crisis. Labour productivity has dropped by 5.7% since its peak in March 2022, which translates to $140 billion in lost GDP output. Meanwhile, real wages are down 4.4% and household disposable income has fallen 6.5% over the same period.
These figures reflect more than just economic trends, they reveal challenges businesses experience daily. Whether you’re in construction, transport, mining or care, you’re likely feeling the strain of rising operational costs, reduced purchasing power and a tightening labour market.
Apprenticeships: A Proven Pathway to Productivity
The solution? Apprenticeships in Australia. When compared to other vocational education pathways, apprenticeships consistently deliver stronger outcomes:
- 92% employment rate within one year of completion, compared to 76% for non-apprenticeship VET graduates.
- 20% higher post-training income, highlighting superior return on training investment.
- 61% of completions align with shortage occupations, versus 43% for non-apprenticeship VET.
Unpacking the $26.2 Billion Solution
According to MEGT and Deloitte Access Economics, boosting apprenticeship completions by 320,000 over the next decade could deliver:
- $11.8 billion in lifetime income gains for individuals
- $14.4 billion in productivity, workforce participation, and tax revenue
That’s a total economic gain of $26.2 billion, at a policy cost of just $4 to $5 billion, delivering a powerful 3:1 return on investment.
The Decline in Apprenticeship Commencements
Despite these compelling benefits, apprenticeship commencements are at record lows. They have declined by 30% since 2014, with a 10% drop recorded in 2023 alone. Over 33,000 people applied for an apprenticeship but were unable to secure one. Of those, 10,300 were unemployed or not in the labour force.
These are missed opportunities, both for the individuals and for employers who could benefit from training loyal, skilled workers.
A Wake-Up Call for Queensland Employers
Queensland employers, in particular, have a unique chance to turn these numbers around. From Brisbane to Bundaberg, industry growth in construction, logistics, and care will depend on whether businesses can attract and retain skilled people. Apprenticeships offer a ready-made pipeline, one that delivers high-value returns, long-term loyalty, and real productivity gains.
Partner with Major Training to Build Your Workforce
We make it easy to invest in your team and access this $26.2 billion solution. Major Training supports Queensland businesses by managing recruitment, compliance, government funding applications, and ongoing apprentice support.
