World News – UA – Budget to spend $ 1 billion in wage subsidies per 100,000 apprentices


Employers to receive more than $ 1 billion in new grants to hire 100,000 apprentices as part of a federal budget plan to avoid an « explosion » in numbers of unemployed and skills-less youth

Big budget move aims to tackle growing crisis as companies go bankrupt or downsize, putting thousands of apprentices out of work and creating future skills shortage

Jayden Fleischer is a fourth-year carpenter apprentice who lost his job during the COVID lockdown but found another to continue his apprenticeshipCredit: Peter Rae

The wage subsidy will be worth 50 percent of the wages of new apprentices, with the aim of supporting 100,000 young workers, and worth at least $ 1 billion

But the new spending may not be enough to offset the decline in total investment in vocational education and training since the Coalition came to power in 2013

Prime Minister Scott Morrison pledged $ 1.5 billion in wage subsidies in July to keep existing apprentices in their jobs, but has answered industry calls for more help for new apprentices

Although M Morrison also pledged $ 500 million in a ‘JobTrainer’ program to help young interns develop skills, much of that is expected to take short courses and will not be enough to help all those leaving school.

The new measures, to be included in Tuesday night’s budget, encourage employers to hire new apprentices by paying part of their wages in the years to come

The current program aimed to support apprentices and interns by providing their employers with a wage subsidy of 50 percent of wages, up to a cap of $ 7,000 per quarter

But the wage subsidy only goes to those who were in training on July 1, offering no certainty for those who want to start an apprenticeship when they leave school at the end of this year or in the years to come

To fill this gap, wage subsidies will be offered to new apprentices in the hope that employers will not only keep their current staff, but hire new employees.

Although the current wage subsidy cap is $ 7,000 per quarter, many apprentices only need a subsidy of $ 3,500 per quarter and the goal of the new program could be met with an expense. $ 15 billion

Industry experts warned on Saturday that spending estimates were unreliable as the job market was difficult to predict and some of the government’s existing measures had not worked as expected

« This is what we asked for, » said association chief Ben Bardon « It has to be a strong response, otherwise we will have long term skills shortages »

The association warned in July that 185 percent of employers were undecided about whether to fire their apprentice or trainee when JobKeeper ends in March, putting 50,615 young workers at risk

« With the current start and end models, that would mean 78,000 fewer apprentices and trainees by December 30, » he said. This would leave the country’s stock of apprentices in training at only 196,930

Support for new apprentices will complement other budgetary measures, including a business investment allowance to encourage businesses to rebuild and an infrastructure program to support construction projects requiring skilled workers

The Sydney Morning Herald and The Age reported on Saturday that existing government spending was not enough to avert a crisis among young people, with a new report from University of Victoria warning of ‘shock’ for those who leaving school

Victoria University Vice-Chancellor and research co-author Professor Peter Dawkins said the country faces an ‘explosion’ of jobless, education and training youth

The Australian Industry Group called for more government action on Saturday and said the trend of workers without jobs, education or training – known as NEET – was an indicator of long-term disengagement and unemployment. duration

« The best way to help young people find work is to encourage employers to create real jobs that develop their skills, » said Innes Willox, CEO of Ai Group

Total investment in vocational education and training was only $ 7 billion in 2017, according to a Mitchell Institute article last December It was down from $ 8 billion in 2008, but the crisis is deeper compared to the $ 9 4 billion spent in 2012

But states were responsible for much of the drop, with the federal share of total investment falling from 265% in 2006 to 382% in 2018

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Apprenticeship, intern, job, grant, government, Australian federal budget

World news – AU – Budget to spend $ 1 billion on wage subsidies for 100,000 apprentices



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