Want to get ahead quickly? Taking up an apprenticeship or traineeship could be your best option.

A new Australian Industry Group report has found that people who have undertaken apprenticeships and traineeships have among the highest job satisfaction and average weekly pay rates (for those under 25) in the community. 

Connecting the Dots Exploring Young Australians’ Pathways from Education and Training into Work used survey data from the Longitudinal Survey of Australian Youth (LSAY), which followed a cohort of young Australians from ages 15 to 25.  

The report found that the strongest employment outcomes, earnings, and job satisfaction were among those who had completed an apprenticeship/traineeship or postgraduate qualifications.  

It also found that apprentice/trainee-qualified workers had the highest average weekly wages at age 25, although they also worked the most hours.  

“96% of young people who had completed apprentice/trainee qualifications were employed at age 25. Only 4% were unemployed or not in the labor force,” the report said.

“Those with apprentice/trainee qualifications also had the highest level of full-time employment, with 92% employed full-time at age 25 if employed”.  

“There could be a number of factors at play here, including current skill shortages in occupations which utilise apprentice/trainee pathways and apprentice pathways likely being more male-dominated (with males more likely to work full-time). However, the strong outcomes may also be due to the more specialized, occupation-specific nature of postgraduate pathways, and apprentice/ trainee pathways in particular”. 

Regional Development Australia - Orana chief executive officer Megan Dixon said the report reinforced her long-standing view that young people are often better off undertaking apprenticeships rather than degrees. 

She said there are tremendous opportunities in a variety of trades because there is a “huge demand” for labour, and many will eventually earn a six-figure sum. 

The report found that part of the reason those who had undertaken apprenticeships and traineeships had higher job satisfaction than degree holders is that “a total of 36% of bachelor’s degree holders are working in jobs below the skill level aligned with their qualification.” 

The report noted that “Those holding apprenticeship/traineeship qualifications were the most satisfied when it came to ‘opportunities to use skills and experience,’ ‘remuneration,’ and ‘tasks assigned’.”  

“This means that, among our sample, those who had completed an apprenticeship/traineeship were the most satisfied with their opportunities to apply the skills and experience gained through their learning pathway in their work at 25. They were also the most satisfied with the pay they were receiving as a result”. 

The report also said those with apprenticeship/traineeship qualifications at age 25 reported the highest average weekly wages, although they also worked the most hours.  

“While earning 16% more than their postgraduate counterparts at 25, they are also working seven additional hours on average per week”. 

In January, the Federal Government revealed the number of occupations covered by the Australian Apprenticeship Priority List has been expanded from 77 to 111 as part of the Australian Apprenticeship Incentive System.

This increased the number of occupations eligible for additional support, including up to $5,000 in direct payments to apprentices and a wage subsidy of up to $15,000 for employers.