Training completion rates up

COMPLETION rates among trainees and especially apprentices are better than previously acknowledged. But not much better, according to new estimates released today by the National Centre for Vocational Education Research.

The figures reveal that that about 55 per cent of apprentices and trainees finish their training, not the 48 per cent reported in February by the expert panel on apprenticeship reform.

The latest data-crunching exercise confirms earlier NCVER estimates, released in May, which took account of people who change employers during the course of their training.

Until now, terminated contracts have been recorded as non-completions, even when people continued their training under new employers. “We needed a method that factored this movement in,” said NCVER managing director Tom Karmel.

The new method involved adjusting contract completion rates, using “average recommencement data”, to calculate individual completion rates. This made a significant difference in the trades but only a marginal difference in non-trade occupations, the NCVER found.

The individual trade completion rate of about 56 per cent was almost a quarter higher than the contract completion rate, with marked improvements in the completion of hairdressing, construction, electrotechnology, telecommunications, food, automotive, engineering and wood trade apprentices.

Two in three electrotechnology and telecommunications apprentices completed their training with one employer or another, the report found, with automotive, engineering and printing trade workers also completing at better than 60 per cent.

But only 54 per cent of hairdressers and 38 per cent of food trade apprentices completed, even allowing for employer swapping.

The non-trade occupations recorded an overall individual completion rate of 54 per cent – barely above the 53 per cent contract completion rate – despite high rates for carers, cleaners and laundry workers.

Completion data takes up to four years to compile because of the time taken to complete apprenticeships and traineeships. But the report followed a separate methodology to project the likely completion and attrition rates for apprentices and trainees who commenced as late as last year.

It found that two in three food trades and hairdressing apprentices who commenced in 2010 were likely to break their contracts at some stage – almost a quarter of them within three months.

Overall, the figures suggest apprentices are less likely than trainees to stick with their initial employers, but more likely to complete with subsequent employers – suggesting the longer training period provides more time to make a change, but also more incentive to finish.

Experts say conditions and future earning prospects also play a big role in completion rates. Dr Karmel said the relationship between apprentices or trainees and their employers was the key to improving completion.

Kit McMahon, general manager of the Service Industries Skills Councils, said the relationship between student and training provider was also crucial.

She said it was important to obtain a clear picture of movements in and out of work – particularly in highly feminised and casualised sectors like the service industries – because understanding non-completion was the key to understanding re-engagement.

Ms McMahon said caring responsibilities often forced service industry workers to change jobs. “This is the reality of work and life,” she said.

On a bright note, the report estimates contract completion rates for apprentices and trainees who started last year will rise to 56 per cent, up from 50 per cent in 2006, on the back of strong improvements in the non-trade occupations.

And a separate NCVER report on participation, also released today, shows that there’s proportionally more apprentices and trainees than a decade ago – and they’re finishing more quickly.

Last year apprentices and trainees comprised 3.8 per cent of the Australian workforce, up from 3.1 per cent in 2000. And 30 per cent of those studying at certificate III level or above completed within two years, compared to 21 per cent in 2000.

Growth in apprenticeships and traineeships bounced back strongly last year, following the lull precipitated by the financial crisis.

Having slumped 6 per cent to 272,000 in 2009, commencements rebounded by 16 per cent or 42,500 – the biggest increase since at least 2000 – to top 300,000 for the first time.