Why Aussie apprentices are dropping out

The cost of living is forcing an “alarming” number of apprentice mechanics to drop out, data from a not-for-profit training organisation shows.

Apprenticeships Are Us general manager Phil Cooksey said inflationary pressures were forcing 60 per cent of automotive apprentices to abandon their training.

“The current cost-of-living pressure, especially in the Sydney area, is probably the biggest culprit for people quitting their apprenticeships,” he said.

“The government has been offering incentives to help ease the cost-of-living pressure, but even still, apprentices are finding themselves faced with difficult decisions.”

The cost of everything households pay for (consumer price index) has now been overtaken by wage growth in Australia – the CPI is 3.8 per cent versus 4.1 per cent for the wage price index in annual terms.

Wages in the transport sector are just a nose in front of inflation, having grown 3.9 per cent in the past year, Australian Bureau of Statistics data shows.

Apprenticeships Are Us is a registered not-for-profit charity that guides school leavers and disadvantaged youth through apprenticeships in the automotive industry.

The charity has support managers in every state to help apprentices with work and personal issues.

“These proactive measures are part of our broader strategy to reduce dropout rates and ensure that more apprentices complete their training and secure stable, well-paying jobs in the automotive sector,” Mr Cooksey said.

But the lure of wages of $75,000 for car mechanics and $100,000 for heavy diesel mechanics were not enough to see apprentices through while the cost of living remained such a burden, he said.

“It’s unfortunate because completing an apprenticeship offers long-term benefits, including valuable qualifications, real-world experience, and highly competitive pay,” Mr Cooksey said.

The Vehicle Repair, Services and Retail Award 2020 mandates the minimum pay for the automotive industry.

If a junior apprentice has not finished year 12, the minimum wage is $516.15 a week. If they have finished school, they must be paid at least $567.77 per week. Pay ticks up more than $100 each year as the apprentice goes through their four-year apprenticeship.

“With the current economic conditions, young people are actively seeking options that allow them to earn a living while continuing their education,” Mr Cooksey said.

“Apprenticeships provide that perfect balance, and with the right support, we can ensure that more apprentices complete their training and go on to build successful careers in this high-demand industry.”