The Illawarra Business Chamber has welcomed the Federal Government's decision to increase funding for existing apprentices.
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But the region's peak busy body said more still needs to be done to encourage employers to take on new apprentices.
Executive director Adam Zarth said the JobTrainer fund announced on Thursday along with an extension of the Supporting Apprentices and Trainees wage subsidy were strongly recommended in our Skilling Australia for a better future: Supporting apprenticeships through COVID-19 report released by Business NSW.
The report revealed if nothing was done to extend the subsidy beyond the end of September around 1800 fewer apprentices would be trained in the Illawarra and South Coast region than recent years.
Mr Zarth said October was looming as an economic cliff for many businesses and described Thursday's announcement as encouraging news. But the chamber boss said it as disappointing that there was no announced increase in support for those wanting to commence an apprenticeship.
"It is critical that government works to ensure that businesses are not left facing a significant shortfall in the availability of skilled workers at a time when the economy is likely to rebound. We remain hopeful that there will be additional announcements down the track to support employers who want to take on new starters."
Mr Zarth said Australia was at risk of significant skills shortages within three years without new starters.
"As part of the JobTrainer package, the National Skills Commission will need to ensure that the short courses being offered support people into employment or at least dramatically increase their chances of employment," he said.
"I would like to see this translate to a national industry-led pre-apprenticeship program, which will ensure this measure provides a more direct pathway to ongoing employment," Mr Zarth said.
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