Broken Apprentice Pipeline Remains Under Construction

Australia’s apprenticeship market cooled last year and has continued to do so in early 2026. The problem is not demand, the problem lies in a system that is not delivering young people to career pathways and so employers are looking overseas to fill jobs.

Entry-level roles for apprentices and trainees declined 23% last year and are tracking lower again in early 2026 and Australia’s vocational education system is smaller than it used to be, with course completions down 64% from their 2012-13 peak.

Aspiring apprentices continue to find work relatively quickly, requiring fewer searches than before the pandemic according to Indeed.

It’s not just ‘tradies’ that are hard to find. Restaurants struggle to find qualified workers, hairdressers are understaffed, and childcare providers cannot find enough educators. These constraints disrupt business operations and surely haven’t helped Australia’s ongoing productivity problem.

According to Jobs and Skills Australia, one-fifth of occupations have faced persistent shortages over the past four years. That jumps to 37% of occupations in the technicians & trade workers category, where apprenticeships are often an entry-point - higher than any other occupational group.

On Indeed, postings for apprentices were around 80% above pre-pandemic levels in both 2022 and 2023, they have been on a downward trajectory since 2024. In 2025, job postings for apprentices and trainees fell 23%, returning to 2019 levels, and so far are tracking lower again in early 2026.

As Australia emerged from the pandemic, employer demand for apprentices soared. Job postings rose sharply as households and businesses caught up on nearly two years of delayed economic activity. At its peak in 2022, job postings mentioning apprenticeships in their job title were 82% above their 2019 baseline.

Conditions have since soured. Postings fell 27% in 2024 compared to a year earlier, and a further 23% last year. In early 2026, employer demand is tracking 21% lower again and is now well below pre-pandemic levels.

Australia's apprenticeship market varies considerably by region, shaped by local industry composition, infrastructure pipelines, population growth, and - often critically - state government policy.

Queensland remains the standout. While apprenticeship postings have declined from their 2022 peak, they were still 80% above their 2019 baseline last year. Demand has eased further in early 2026, but is still healthy overall.

Brisbane’s 2032 Olympic Games will support a long-term construction and infrastructure pipeline, underpinning demand for apprentices over the next half-decade.

In Victoria, apprenticeship postings were 23% below pre-pandemic levels in 2025, down 54% from their peak, and are tracking even lower this year. New South Wales has performed only marginally better.

Employers can access a range of financial incentives to hire apprentices; however, support was reduced in some cases at the beginning of this year.

Employers in new energy or housing construction can receive the Key Apprenticeship Program Employer Incentive, which provides up to $2,000 after 6 months and $3,000 after 12 months for hiring full-time apprentices (halved for part-time).

The Priority Hiring Incentive, which offers $1,000 after 6 months and $1,500 after 12 months for hiring full-time apprentices (halved for part-time) was halved beginning on 1 January 2026.

Queensland continues to support apprentices on both the demand and supply sides. Fee-free TAFE and free apprenticeships for under-25s boost the talent pipeline, while the state’s ‘Back to Work’ program offers employers up to $15,000 incentive to hire young people.

The post-pandemic jump in apprenticeship training, which saw it climb to 3.2% of employment in 2021-22, is well and truly over. Outside the pandemic, this is the lowest level in over three decades.

It’s also taking longer for people to complete their apprenticeships. By 2020, the average completion time had reached 833 days - more than two years and around seven months longer than in 2011-12, completion rates typically settle between 50-60%.

In response, many employers have turned their attention overseas. In 2024-25, around 9,800 temporary skilled visas were granted to workers in the top 25 apprenticeship occupations. That’s more than four times higher than in 2021-22 and around 2.5 times the number of visa grants in the two years before the pandemic began. Some employers might be ditching entry-level apprentices in favour of experienced workers who can contribute immediately.

Many occupations seeking apprentices are dominated by a single gender. ‘Tradies’ remain overwhelmingly male. In 2025, 98% of electricians and 97% of plumbers, mechanics and carpenters were men. By comparison, education roles skew towards women, accounting for 93% of childcare workers and 95% of early childhood specialists.