Let’s get ready – comment by CEO Craig Robertson

Last week’s budget has thrown everything at economic recovery from the impact of the global pandemic. A push for jobs and faith in employers to open them up.

In these unprecedented times every encouragement is being given to keep or take on workers.

JobKeeper has kept workers in employment even if business is poor. The payments now taper, one step down now till the end of the year and then another from January to March.

JobSeeker Coronavirus Supplement of $250 per fortnight is available until the end of the year.

JobMaker Hiring Credit announced in the Budget started on Budget day and provides employers over the next 12 months $200 a week if hiring someone aged 16 to 29 years or $100 a week for 30 to 35 years olds estimated to create 450,000 positions.

Boosting Apprenticeship Commencements Wage Subsidy started last Monday and will pay businesses of all sizes, in all industries, and in all locations 50 per cent wage subsidy (up to $7000 per quarter) for commencing apprentices and trainees or existing workers embarking on a new apprenticeship, up to 100,000 new apprentices and trainees.

Transitions will be interesting. Off JobSeeker, into work, hopefully. Businesses transitioning out of JobKeeper can seek out JobMaker, or Boosting Apprenticeships. The latter has been criticised this past week for favouring men. The name doesn’t help –the bulk of apprenticeships are with men. “Women make up just 3% of those employed in the electrotechnology and telecommunications trades, and only 1% of those working in construction, engineering and automotive trades”1.

The story is likely to be different though across the 100,000 places. The Government is clear that this is a universal scheme – for any employer of any size for any qualification from Certificate II.

Consider the decision making of employers.

Engage an apprentice – will the business be strong for the 3 or 4 years that’s needed for the apprenticeship?

Engage a trainee – the 12 to 18 months is manageable and there’s a wider range of qualifications.

Get current workers to sign up for an apprenticeship or traineeship – a very attractive way to get assistance to train workers.

The 100,000 places are likely to be taken up in quick time, for two reasons.

Opening to Certificate II courses is significant. Support for employers engaging trainees in Certificate II courses was withdrawn in the 2011 Budget (apart for some priority groups). Certificate II traineeships are very popular in retail and hospitality so it is assumed they have been made available to assist in recovery in those industries.

Further still, Government support to employers signing on their workers to a traineeship seems to be a return to previous policy. Financial incentives to employers signing existing workers up to traineeships was progressively withdrawn from the 2012 Budget (apart from traineeships in personal care occupations). Employers will be attracted to the wage support and the formal training.

The question is whether the scheme will grow unchecked. The only proviso on this universal scheme is that the training contract is formally approved by the state training authority. States and territories generally accept Contracts of Training if regulatory conditions are met, so they are unlikely to moderate growth in any way.

There is some moderation though. Most states and territories only fund the training for courses they consider priority. Many traineeships will be signed up but there will be no public funds available for the training. Employers are likely to have to foot the bill.

Bottom line. There will be opportunities for women in the scheme. The broader question is whether the training will be well targeted and of value. This is something that deserves to be watched as the places are taken up… with gusto, I suspect.

[1] https://theconversation.com/the-female-tradie-shortage-why-real-change-requires-a-major-cultural-shift-97091#:~:text=Women%20make%20up%20just%203,construction%2C%20engineering%20and%20automotive%20trades.