The Australian Government has recently unveiled a new initiative known as the Skills Guarantee. This initiative aims to provide on-the-job training for the next generation of skilled workers, as well as increase the participation of women in apprenticeships and traineeships. In this blog, we will discuss the key features of the Australian Skills Guarantee and how it will benefit the economy and society as a whole.
Targets for Apprentices, Trainees, and Paid Cadets
Under the Skills Guarantee, new national targets will be introduced for apprentices, trainees, and paid cadets working on Australian Government-funded major projects. The initiative will also introduce targets for women to increase the proportion of women working on major projects and drive long-term sustainable change to reduce gender segregation in the apprenticeship system.
Targets for Women
To reduce gender segregation in the apprenticeship system, the Australian Skills Guarantee will introduce targets for women working on major projects. Major construction projects with a total contract value of $10 million or more will be required to meet a minimum of 10% of all labor hours to be undertaken by apprentices/trainees. The targets for women for major construction projects will increase annually by one percentage point, reaching a minimum of 12% for women in apprenticeships and traineeships and 10% for women in trade apprenticeships and traineeships in 2030.
Australian Skills Guarantee Procurement Connected Policy Guidelines
The key mechanism to implement the Skills Guarantee will be through the introduction of the Skills Guarantee Procurement Connected Policy guidelines (PCP guidelines). The PCP guidelines will apply to direct Commonwealth procurements in the construction and ICT sectors. The targets will initially apply to direct Commonwealth procurements in the construction and information and communication technology sectors, where the total contract value is $10 million or more.
Other Skills Guarantee Implementation Approaches
While the Skills Guarantee PCP will only apply to direct Commonwealth procurements in Construction and ICT, the Australian Government is also working across the Government to apply the Skills Guarantee to the National Housing Accord, the 2032 Olympic and Paralympic Games, and the Federal Financial Agreement Schedule on Land Transport Infrastructure.
Conclusion
The Australian Skills Guarantee is a welcome initiative that will help provide on-the-job training for the next generation of skilled workers. The initiative will also help increase the participation of women in apprenticeships and traineeships and drive long-term sustainable change to reduce gender segregation in the apprenticeship system. By creating more jobs and reducing the country’s unemployment rate, the Skills Guarantee will bring significant benefits to the Australian economy and society as a whole. Australian Skills Guarantee – Department of Employment and Workplace Relations, Australian Government (dewr.gov.au)
