From housing and infrastructure to energy and mining, Australia's ability to deliver on major projects depends on a steady supply of skilled workers. Yet apprenticeship and traineeship numbers are falling.
Lena Constantine, CCIWA's Director of Commercial Services, examines the connection between workplace-based training and productivity, and why reversing this trend should be a national priority.
Growth has slowed over the past decade, and each Budget cycle reinforces the same message: lifting productivity remains essential to sustaining economic growth, fiscal capacity and living standards.
The causes are broad and structural. Slower technology adoption, weaker capital investment and infrastructure constraints all play a role. But alongside these factors sits a less visible, yet economically significant issue: the strength of our skills pipeline, particularly in occupations built around workplace-based training.
While policy discussions often focus on innovation, technology and capital investment, productivity ultimately depends on how effectively labour, capital and technology are combined. That requires a workforce with the right capabilities in the right places.
One practical lever is the scale and effectiveness of apprenticeships and traineeships.
A shrinking training base
Recent national training data shows apprenticeship and traineeship numbers are falling. As of September 2025, fewer than 300,000 Australians were in training contracts. This is down more than 10% on the previous year and below pre-pandemic levels.
In key trade areas linked to construction, infrastructure and energy, Australia appears to be training fewer workers than many comparable economies. While around 11% of Australia's trade workforce is currently in training, Western Australia sits lower at 9.7%.
That matters because these sectors rely on a continuous flow of skilled workers to replace retirees, support industry growth and maintain capability.
How apprenticeships affect productivity
Apprenticeships and traineeships contribute to productivity in several ways.
They reduce skill mismatches by aligning training with actual job requirements. This improves the fit between employee capability and employer need, reducing recruitment costs, turnover and inefficiencies.
They build occupation-specific skills in real workplace environments, allowing workers to develop practical competencies that can often be applied more quickly than through classroom-only pathways.
They support smoother transitions into the workforce and help lift long-term labour force participation.
At the business level, structured training can improve output, quality and process efficiency. At a broader economic level, a stronger and better-aligned skills pipeline can help lift productivity over time, particularly in sectors where access to skilled workers is a key constraint.
A coordination problem
If workplace-based training delivers these benefits, why is participation relatively low?
The answer is often not a lack of value, but a misalignment of incentives.
Employers face upfront wage costs, supervision requirements, administrative complexity and the risk that workers will move elsewhere once qualified.
At the same time, many of the benefits of training – higher productivity, stronger workforce participation and broader economic growth – are shared across the economy rather than captured by the employer making the investment.
This creates a classic coordination problem. From a system perspective, more people in training is highly beneficial. From an individual business perspective, the incentive to invest can be weaker.
Why scale matters
Higher participation rates create benefits beyond simply producing more qualified workers.
Greater employer engagement strengthens links between industry and training providers, improves pathway visibility for new entrants and reduces the risk of skills shortages. As training becomes more common, labour mobility and workforce resilience also improve.
For Australia, significantly lifting apprenticeship and traineeship numbers would require sustained effort and long-term reform. More importantly, growth would need to happen in sectors where labour shortages are already affecting output.
Theis includes:
- construction and housing delivery
- energy and infrastructure rollout
- transport and logistics
- care and support services
- service sectors that support tourism
The bottom line
There is no single solution to Australia's productivity challenge.
However, the strength of the skills pipeline – particularly in occupations built through workplace training – remains a foundational part of a high-performing economy.
Expanding apprenticeships and traineeships will not replace the need for investment, technology adoption or better management practices. But without a sufficiently skilled workforce, the benefits of those investments are diminished.
The question is not whether apprenticeships alone can solve the productivity challenge.
It is whether we are under-utilising one of the key tools available to us.
Lena also serves on the WA State Training Board, advising the Minister for Skills and TAFE on industry training needs.
Passionate about building the workforce WA needs, she has extensive expertise in apprenticeships, having overseen WA’s largest Australian Apprenticeship Support Network provider since 2015. Lena has also worked for the Federal Government on industry policy and previously led CCIWA’s Policy team, bringing deep experience in policy development and government program delivery.
Powered by CCIWA, Apprenticeship Support Australia (ASA) can facilitate employment, manage training and offer support and advice to companies seeking apprentices to boost their workforce. Call 1300 363 831 or email [email protected].
CCIWA’s Industry Capability Network can connect your business with suppliers with the right capabilities for your project. Contact the ICNWA team on (08) 9365 7623 or by email at [email protected].
