Tuesday, June 16, 2020

Apprenticeship reality

MSD surveyed business about the wage subsidies and got a 25% response. The results were released yesterday. This caught my eye:

The Wage Subsidy Scheme has enabled businesses to manage cashflow, retain staff & continue operating. They were less likely to use the subsidy to continue workplace training/apprenticeships.
Son two years into an apprenticeship was made redundant.  He's turning that into a positive but it does call into question Labour's much heralded investment into ... more apprenticeships. The $1.6b Trades and Apprenticeships Training Package .That was announced the day after he was let go. We just looked at each other and shook our heads.

Having seen the confirmation of the non-use of the wage subsidy to keep apprentices I suspect there are likely thousands of young people who've been let go from existing apprenticeships because of the Covid response. They are also most likely first in line to resume employment if/when the economy picks up.

Or the government pays an employer to hire a new apprentice and keeps paying the old apprentice the dole.

State interference in the economy to keep it artificially afloat never fails to produce distorted outcomes.

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