Rising cost-of-living pressures are creating a more uncertain road into the trades for young Australians, with fresh industry data revealing the financial strain already hitting the businesses responsible for employing and training the next generation of apprentices.
New findings from the Institute of Automotive Mechanical Engineers (IAME) Cost of Living Survey paint a concerning picture, with 93 per cent of businesses reporting moderate to very high financial pressure, while more than 72 per cent say conditions have worsened over the past 12 months.
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For young people entering the workforce, the concern is not just about affording tools or fuel — it is whether enough apprenticeship opportunities will exist at all.
Businesses under pressure
According to Apprenticeships Are Us Ltd (ARU) Managing Director Michael Wentworth, the figures highlight the growing challenge facing both employers and apprentices.
“At the start of the year, our industry received incredibly disappointing news of government cuts to essential incentives for small businesses to employ apprentices,” Mr Wentworth said.
“What the IAME survey shows is that those policy decisions are landing at the same time as intense cost of living pressure across the economy.”
“For young Australians, that means entering a workforce where businesses are under real financial strain and opportunities are becoming more competitive.”
The research found more than one in three businesses may reduce staff or apprentices if current conditions continue, raising concerns about training pathways at a time when demand for skilled trades remains high.
Fewer opportunities, more competition
While interest in trade careers remains strong, Mr Wentworth warned the economic climate is making it harder for young Australians to secure a foothold.
“We are seeing strong interest from young Australians who want to build careers in the trades, which is encouraging,” he said.
“But the reality is they are now competing for fewer opportunities, due to the economic strain businesses are under, and many will also be managing their own personal cost of living pressures at the same time as they start out on apprentice wages.”
The warning comes as many apprentices face steep upfront costs, including tools, transport, training expenses and everyday living costs — all while earning entry-level wages.
Managing the apprentice budget
Mr Wentworth said apprentices entering the workforce should take a practical approach to finances from the outset.
“Apprentices should be looking closely at how they budget from day one, making use of any available support programs and being realistic about the costs they’ll face, from transport to tools to everyday living expenses,” he said.
He also urged young workers to consider stability when choosing an employer or training organisation.
“Choosing an employer or training organisation that can provide stable, ongoing employment and structured support can make a significant difference, particularly in uncertain economic conditions.”
A long-term investment
Despite the short-term pressures, Mr Wentworth said completing an apprenticeship remains one of the strongest pathways to long-term job security and higher earnings.
“The early years can be tough financially, but completing an apprenticeship remains one of the most reliable pathways to a secure and well-paid career,” he said.
“What we need to ensure is that the economic environment doesn’t discourage capable young people from entering the trades or prevent businesses from being able to train them.”
Bigger workforce concerns emerging
The IAME findings also point to broader industry concerns, with more than half of surveyed businesses uncertain about their ability to continue operating under current conditions.
That uncertainty has implications well beyond workshops and worksites, potentially affecting workforce development, skills shortages and the long-term sustainability of essential trade services.
“If businesses are under pressure, apprenticeships are one of the first areas where that impact is felt,” Mr Wentworth said.
“This is ultimately about the future workforce. The environment young Australians are stepping into matters, and right now, it is becoming increasingly challenging.”
