Unlocking a $26 Billion Opportunity: New Report Reveals Power of Apprenticeships
Reversing the decline in Australia’s apprenticeship system could unlock $26.2 billion in national value over the next decade - lifting wages, deepening workforce capacity, and driving productivity growth.
That’s the key finding of a new report by MEGT, developed in partnership with Deloitte Access Economics.
The MEGT Productivity Prospectus reveals apprenticeship commencements are now 30 per cent lower than a decade ago, with around 60,000 fewer new apprentices starting each year. As a share of the working age population, commencements are at their lowest point on record.
Yet with the right investment and support, the report shows we can reverse the trend - and capture billions in economic and social value.
Watch our CEO Matthew Hick’s message on how apprenticeships can drive Australia’s future workforce.
Key Findings
A $4–5 billion investment in targeted incentives could deliver:
- 320,000 additional apprenticeship completions over the next decade
- $11.8 billion in additional lifetime income for individuals
- $14.4 billion in broader economic benefits, including higher tax revenues and productivity gains
Why It Matters
Despite clear benefits, only 1 in 10 businesses currently employs an apprentice.
The recent rise in completions during the pandemic was driven by temporary subsidies. Without action, the long-term decline is set to continue.
In 2024 alone, 33,100 people applied for apprenticeships but were unsuccessful — showing demand exists, but more support is needed for employers and jobseekers alike.
Four Actions to Unlock Apprenticeship Growth
The Productivity Prospectus outlines four key recommendations to increase apprenticeship numbers and completion rates:
- Introduce meaningful employer incentives for a wide range of qualifications, especially in priority industries.
- Expand employer support services to simplify the process of taking on an apprentice.
- Enhance apprentice support models to boost preparation, retention and post-training outcomes.
- Deliver these changes as a unified, modernised package within a more flexible and innovative training system.
“If we want to build more homes, transition to clean energy, and meet growing care needs, we need a pipeline of skilled workers,” said MEGT CEO, Matthew Hick.
“Apprenticeships are the fastest and most direct way to get there - and now we have the data to show just how valuable they are to the economy.”
Read the full MEGT Productivity Prospectus to explore the data, findings, and recommendations here.