By Anna Patty
The slow economy and a sharp increase in TAFE fees have been blamed for a fall in the number of apprentices and trainees in NSW at a time of high youth unemployment.
Internal NSW Treasury figures released by the state upper house show the number of apprentices and trainees employed by businesses paying payroll tax fell from 56,427 to 54,017 - a fall of almost 5 per cent - between 2011 and last year.
Skill shortages: A slow economy and TAFE fee hikes are criticised as reasons for a fall in the number of apprentices and trainees in NSW.Credit: Greg Ellis
Opposition Leader John Robertson, whose office obtained the figures, said the government should be addressing skills shortages and the high rate of youth unemployment, which is close to 17 per cent.
''The O'Farrell government should be investing more in vocational training, not making it more difficult to access and less affordable for students,'' Mr Robertson said. ''The massive fee hikes are particularly tough on apprentices and the small businesses who employ them, who are expected to meet the rising costs of their training over time.
''These figures provide a clear picture of the numbers of apprentices or trainees in NSW as small businesses who engage [them] would naturally be claiming any tax exemption they are entitled to.''
The director for education and training at the Australian Industry Group, Megan Lilly, said employers have faced difficult market conditions and an uncertain economy.
The government's decision to increase TAFE fees, which the state price regulator says will rise by up to $750 a year, had also contributed to a decline in apprenticeships and traineeships, she said.
''The fee hikes next year will be quite considerable and I think that is causing nervousness among employers,'' she said. ''I think the major problem is the economy and market conditions.''
Figures from the NSW Department of Education also reflect the decline. The number of new TAFE apprentice enrolments fell from 43,290 to 42,781 between 2011 and last year - a drop of 1.2 per cent.
The number of new traineeships started last year was 66,263 - 537 fewer than the previous year. The number completed fell by 951 to 38,388 between 2011 and 2012.
A department spokesman said apprenticeship numbers were directly affected by changes in the economy. ''This is reflected in the new apprentice commencements at TAFE NSW between 2008 and 2009, which decreased by 15.2 per cent [2626 fewer new apprentice enrolments, from 17,290 to 14,664],'' he said.
The spokesman said new apprentice enrolments had increased by 6279, from 15,745 to 22,024, since October last year.