In the first six months of 2020, the number of suspended apprentice and trainee contracts increased significantly, but by September had fallen to levels that were lower than the previous year, according to a new report released by the National Centre for Vocational Education Research (NCVER).
Apprentices and trainees 2020: impacts of COVID-19 on training activity, charts the tumultuous year apprentices and trainees experienced by exploring monthly trends in contract commencements, suspensions, cancellations and withdrawals and completions.
The research shows that, following the introduction of health restrictions to combat the pandemic, contract suspensions increased more than 650% in the months of March and April of 2020, followed by a further rise of 300% in May. There was also a marked decline in new apprentice and trainee contract commencements in April and May, which continued to fluctuate between June and September of that year.
However, by September 2020, the increase in the number of suspended apprentice and trainee contracts had reversed and was around 10% lower than the same time in 2019. And in October, coinciding with the introduction of Australian Government’s Boosting Apprenticeship Commencements wage subsidy and state and territory initiatives, the number of commencements rebounded strongly and remained above 2019 levels in November and December 2020.
The influence of the pandemic was much less pronounced on apprentice and trainee contract cancellations and withdrawals, and contract completions.
For cancellations and withdrawals, this may be attributed to a combination of government support measures targeting retention, such as JobKeeper, and apprentices and trainees’ hesitation to seek other employment opportunities given the poor employment outlook during most of 2020. Measuring change in completion levels between 2019 and 2020 is less clear because many trade apprenticeships take up to four years to complete and reflect patterns of commencements in the years prior to 2020.
The report also explores how the pandemic affected apprenticeship and traineeship activity by industry group. It finds, as with previous periods of economic disruption, the economic effects of COVID-19 hit some industry groups harder than others.
Background
This report focuses on data trends over the course of 2020 only. Impacts to apprentices and trainees are based on monthly training activity in 2020, compared with training activity prior to the pandemic 2019.
Quotes attributable to Simon Walker, Managing Director, NCVER:
This report reveals the uncertainty and challenges many apprentices and trainees and their employers experienced over the course of 2020.
The research provides insights into the impacts of COVID 19 on apprentices and trainees as the pandemic unfolded through the year. The timeline reflects the varying impacts of health restrictions across states and territories and industry sectors as well as the effect of government economic and fiscal stimulus responses.
Report: Apprentices and trainees 2020: impacts of COVID-19 on training activity
Enquiries: Deanne Loan M: 0413 523 691 E: deanneloan@ncver.edu.au
About NCVER: we are the main provider of research, statistics and data on Australia’s VET sector. Our services help promote better understanding of VET and assist policy makers, practitioners, industry, training providers, and students to make informed decisions.
This work has been produced by NCVER on behalf of the Australian Government and state and territory governments, with funding provided through the Australian Government Department of Education, Skills and Employment.