The country aims to build 1.2 million new homes by 2029, but a continued decrease in apprentice completions could hinder this target. In early 2025, just over 10,000 apprentices completed their training, marking the lowest figure in a decade, excluding pandemic-affected years. This trend presents a serious obstacle to the skilled workforce required to meet Australia's construction plans.
Apprentice completions have dropped by 38% over the last ten years, challenging businesses that depend on tradespeople such as electricians, plumbers and bricklayers. For many employers, training new workers is a long-term risk, as many apprentices do not finish the four-year qualification. Adding to this, fewer young Australians are showing interest in trade careers, with only a small number of 15-year-olds planning to take up an apprenticeship.
During the first quarter of 2025, just over 32,000 people began trade apprenticeships, nearly 2% lower than in the same period in 2024. Construction, automotive and engineering trades all recorded decreases. While around 15,000 people completed their apprenticeships during the same period, this figure showed an 11.8% increase from the previous year. It usually takes around three years for employers to see a return on training investments, making the high dropout rate a costly issue.
Meanwhile, the demand for skilled trades is rising. Projections indicate that Australia will need 30,000 additional electricians by 2030 and close to three times that number by 2050. This shortage is also increasing wages across the sector. Some specialist positions in Perth are now earning up to $250,000 annually, with lead roles in demanding areas possibly earning twice as much.
Experts note that while the federal government offers incentives for apprentices in critical sectors such as housing and clean energy, more support is needed. Wage subsidies could help reduce the risk for employers, with proposed support levels between $3,000 and $4,000 per apprentice each year. These incentives could make apprenticeships more accessible for small and medium businesses.
Although the situation remains difficult, businesses are still investing in apprentices, particularly mature-age workers with prior experience. These individuals tend to show greater resilience and dedication than younger trainees, helping businesses address current needs while developing a long-term workforce. Nevertheless, urgent government action is still needed as shortages in skilled labour continue to affect the construction industry.
