Australia is facing a critical skills shortage, but with the right moves, employers could unlock a $26.2 billion boost to the economy over the next decade.
According to the MEGT Productivity Prospectus 2025, a consistent increase in apprenticeship uptake could deliver:
$11.8 billion in lifetime earnings for workers
$14.4 billion in productivity and public benefit gains
A total of $26.2 billion in national economic value
Even better, for every $1 invested, there’s a $3 return in benefits to the economy.
Here are five high-impact ways your business can address the apprenticeship skills shortage in Australia while growing your workforce.
1. Use Apprenticeship Incentives to Upskill Sooner
Government incentives remain a proven driver of apprenticeship uptake, especially in high-demand industries like construction, aged care and electrical trades.
What to do
Apply for the Australian Apprenticeships Incentive System. You could receive:
Up to $15,000 per apprentice
Priority funding for occupations on the Australian Skills Priority List
2. Train Supervisors to Lead from the Front
Untrained supervisors are a major reason apprentices leave. They often lack the tools to manage people and training at the same time. Businesses that invest in supervisor training see up to 30% higher completion rates.
What to do
Invest in supervisor development:
Enrol them in leadership or mentoring programs
Include workplace coaching as part of your training plan
3. Create a Supportive Workplace Culture
An unsupportive environment is the number one reason apprentices leave. Culture is key to long-term retention. 38% of apprentices leave due to poor culture and lack of support.
What to do
Make simple culture shifts:
Pair apprentices with mentors
Give regular feedback
Celebrate milestones like job cards or qualification completions
These actions increase engagement and reduce dropout rates.
4. Co-Design Training with Your RTO
Too often, employers say training doesn’t reflect real-world tasks. The fix? Get involved in shaping what’s taught. Co-designed programs can improve workplace readiness by up to 45%.
What to do
Work with your training provider (like Major Training) to:
Customise electives
Integrate your equipment and systems
Align assessments with your actual job requirements
5. Build a Local Pipeline of Skilled Workers
Regional and industry-specific shortages are often due to limited local training options.
What to do
Collaborate with:
Local schools
Regional councils
Trusted RTOs like Major Training
Create “grow your own” programs that offer early access to apprentices, especially in regional and hard-to-fill roles.
Bonus Tip: Use flexible pathways for career changers and mature-aged workers to fill skill gaps fast.
Ready to Turn the Skills Crisis Into an Opportunity?
Australia’s skills shortage isn’t just a problem. It’s a $26.2 billion opportunity to grow a more capable, resilient workforce.
With the right training partner and a few strategic moves, your business can lead the way.
Start your training today with Major Training.
Where do I start?
Speak with Major Training to explore your options, get matched with candidates and co-design a training plan that works for your team. Call us today at 1300 790 822!
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FAQs About Solving Australia’s Skills Crisis
What’s causing the skills shortage?
Ageing workforce
Drop in apprenticeship numbers
Migration changes
Training that doesn’t match real jobs
How do apprenticeships help?
They deliver job-ready, hands-on skills in a way that lines up with employer needs. Apprenticeships also create strong career pathways.
Which industries benefit the most?
Construction
Electrical and engineering
Manufacturing
Health and community services
Transport and logistics
