4102.0 - Australian Social Trends, 1998
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 03/06/1998
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Education At Work: Workplace training
Training provided by employers During the 12 months ending February 1997, 61% of all employers provided training for their employees. More employers provided unstructured training (53%) than structured training (35%), with 27% of employers providing both types. Of those who provided structured training, the two most important reasons given for training employees were to improve their current job performance (38%) and to improve the quality of goods and services (37%). Responding to new technology was another important reason given (22%). Employers spent close to $1.2 billion on structured training over the three months from July to September 1996, an increase from the $1.1 billion spent over the corresponding period in 1993. Much of this increase was due to the inflation of wage and salary costs, which made up 70% of total training expenditure in both years. Moreover, the increase in expenditure did not keep pace with the expansion of the workforce over the period. Consequently, training expenditure per employee decreased from $191 in 1993 to $185 in 1996. Hours of training per employee also decreased, from 5.6 hours to 4.9 hours. These decreases have occurred since the Training Guarantee was suspended and abolished. Employer size In the September quarter of 1996, large employers spent more on training per employee ($256) and provided more training hours per employee (6.5 hours) than either small or medium employers. Large employers were also the only organisations to have increased training hours and expenditure per employee between 1993 and 1996. However, as only 2% of all employers are large, these increases were more than offset by decreases in training hours and expenditure per employee by small and medium employers. This drop in commitment to workplace training by small and medium employers accounts for the lower levels of training in 1996. WORKPLACE TRAINING(a) BY EMPLOYER SIZE
Source: Employer Training Expenditure, Australia, July-September 1996 (cat. no. 6353.0). In-house and external training Structured training provided by employers for their employees can be either in-house or external. In-house training courses are those organised by an employer primarily for their own employees, and are usually conducted by the employer's training staff or training consultants. External training courses are those organised and conducted by outside training or educational institutions, agencies or consultants. In the September quarter of 1996, 70% of total training expenditure was spent on in-house training ($825 million) and 30% on external training ($354 million). Employees received an average of 3.1 hours of in-house training and 1.8 hours of external training per person over this three-month period. The proportions of training expenditure and training hours per employee for in-house and external training did not change between 1993 and 1996. In 1996, large employers spent a greater proportion of their total training expenditure on in-house training (74%) than medium (62%) and small employers (51%). This is most likely because in-house training is more economically viable for large organisations.
Training by industry In the September quarter of 1996, industries with the highest total expenditure on structured training were manufacturing ($161 million), education ($132 million) and property and business services ($128 million). However, the mining industry had by far the largest training expenditure per employee ($896) and provided the highest number of training hours per employee (17.1 hours). Industries with the least number of structured training hours per employee were cultural and recreational services (2.8 hours) and accommodation, cafes and restaurants (2.4 hours) where, because of the lower skill requirement, most training is unstructured and provided on the job. These industries also have large numbers of casual employees (many of whom are women) who consequently tend to receive less training than others. The overall reduction in workplace training levels between 1993 and 1996 did not occur in all industries. Those that reduced training hours and expenditure per employee were communication services; property and business services; construction; wholesale trade; health and community services; manufacturing; and accommodation, cafes and restaurants. All other industries increased levels of workplace training between 1993 and 1996, with mining having the largest increases in training expenditure per employee (up by $209 per employee) and training hours (up by over 3 hours per employee). Training by sector In the September quarter of 1996, total training expenditure in the private sector was $779 million, almost double that in the public sector ($400 million), reflecting the greater proportion (over 75%) of employees in the private sector. However, the public sector spent more on training per employee ($264, compared to the private sector's $161) and provided more training hours per employee (6.3 hours, compared to the private sector's 4.5 hours). While training hours and training expenditure per employee remained around the same levels, total training expenditure increased in the private sector (up by $125 million) and decreased in the public sector (down by $49 million) between the September quarter 1993 and the September quarter 1996. These changes reflect shifts in employment across the two sectors (see Australian Social Trends 1998, Public sector employment). WORKPLACE TRAINING(a) BY INDUSTRY AND SECTOR
Source: Employer Training Expenditure, Australia, July-September 1996 (cat. no. 6353.0). Entry level training One important group of employees who receive workplace training are apprentices and trainees. These employees start training contracts on entry to the workforce in order to provide them with relevant qualifications and on-the-job skills. Taking on apprentices and trainees is a large commitment by an employer, as there is considerable cost involved and an obligation to provide a complete range of work experiences. The Group Training Scheme, which evolved in the 1980s, was introduced to encourage this commitment. Under this scheme, apprentices and trainees are indentured to a single employing body, the Group Training Company (GTC). Organisations that form a GTC share the costs, which are subsidised by government, of employing and training their apprentices and trainees. The apprentices and trainees are placed in each host organisation, usually on a rotation basis, to gain work experience. The number of apprentices and trainees in the workforce was 175,354 in 1996-97, up from 135,783 in 1994-95, representing a 29% increase over the period. This increase can be almost entirely attributed to the rise in the number of trainees (up by more than 36,000). At the same time, apprentices and trainees employed by the Group Training Scheme increased by 34%, from 17,712 in 1994-95 to 23,676 in 1996-97.1 Increases in apprentice and trainee numbers have resulted in increased amounts of entry level training provided by employers, as seen in the 1997 ABS Employer Training Practices Survey. In the 12 months ending February 1997, 48% of employers with an apprentice or trainee increased their expenditure on structured training and 37% increased levels of unstructured training. By comparison, only 15% of employers without an apprentice or trainee increased their expenditure on structured training and 17% increased levels of unstructured training. Larger increases by employers with an apprentice or trainee reflect their additional training responsibilities. In 1996-97, a quarter of all apprentices and trainees were employed in the building and vehicle occupations. However, between 1994-95 and 1996-97, the number of apprentices in the building occupational group decreased by 8%. Most other occupational groups increased apprentice and trainee numbers over this period. There were dramatic rises in some occupations, notably labourers and related workers; salespersons and personal service workers; para-professionals; plant/machinery operators and drivers; and clerks. This was largely a result of the increase (309%) in the number of trainees between 1994-95 and 1996-97, almost all (99%) of whom were in these occupational groups in 1996-97.1 The proportion of female apprentices and trainees has been increasing. Most increases in female numbers have occurred in traineeships, as apprenticeships still remain a male-dominated area. In 1996-97, 22% of all apprentices and trainees were female, up from 17% in 1994-95. Female apprentices and trainees in 1996-97 were concentrated in the hairdressing (90% female), clerks (71% female) and salespersons and personal service workers (58% female) occupations. The occupational groups that were largely male-dominated were metal fitting and machining; other metal; building; and vehicle. Each of these had 2% or less female apprentices or trainees.2 APPRENTICES AND TRAINEES BY OCCUPATION(a) AND SECTOR, 1996-97
(b) Includes a number for unknowns - those who could not be classified as either apprentices or trainees. (c) Includes a small number of professionals. Source: National Centre for Vocational Education Research, Australian Training Statistics, Annual 1996/97. APPRENTICES AND TRAINEES Source: National Centre for Vocational Education Research, Australian Training Statistics, Annual 1996/97. Endnotes 1 Australian Committee on Vocational Education and Training Statistics, 1996, Australian Training Statistics, Annual 1994/95, ACVETS, Canberra. 2 National Centre for Vocational Education Research, 1997, Australian Training Statistics, Annual 1996/97, Vol. 3, NCVER, Leabrook, South Australia.
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