Australia faces a major skilled worker shortage by 2030, with rising demand from energy, AI and housing projects compounded by soaring apprenticeship costs and limited training places.
Australia faces a shortage of 40,000 skilled workers by 2030, with soaring demand from renewable energy projects, AI data centres and housing developments threatening to outpace the nation's training capacity.
Research by the Powering Skills Organisation found more than 20,000 additional apprentices would be needed to meet demand, a 40 per cent increase on current numbers, according to News.com.
Australia faces a shortage of 42,000 skilled workers by 2030 as demand from renewable energy, AI data centres and housing projects grows. Picture: NCA NewsWire / Dan Peled
Yet only one in four employers currently takes on apprentices, with the cost of training workers emerging as a major barrier.
It can cost between $190,000 to $220,000 to support an apprentice, Tertiary Education Council Australia chief executive Felix Pirie said.
Small and medium-sized businesses employ more than 70 per cent of apprentices, including more than 95 per cent of those in electrical contracting.
Mr Pirie said the first two years of training were often a cost centre for employers, with government incentives offering limited relief.
Employer payments are set to fall from $5,000 per apprentice this year to $4,000 in 2027, while businesses with more than 200 employees are ineligible.
For an individual employer, we're talking very small amounts of money, Mr Pirie said.
Skills and Training Minister Andrew Giles defended the government's apprenticeship support, highlighting $10,000 incentives for eligible new apprentices in housing and clean energy.
These incentives, alongside the support we're delivering through free TAFE courses in construction trades, has contributed to a 19 per cent increase in electrical apprentice commencements year-on-year, Mr Giles told News.com.
Despite growing demand, apprenticeship opportunities remain uneven, with some electrical positions attracting up to 100 applicants while other essential trades, including civil construction, struggle to fill vacancies.
Industry bodies are calling for stronger financial incentives, closer links between schools and vocational training, and greater investment in training colleges to address the shortage.
