Australia’s Morrison Government outlined its Budget for 2022 and focused on continued investment in the country’s workforce.

Prime Minister Scott Morrison said Australia's apprentices, trainees and workers building their skills were ‘key to delivering a stronger economy’.

"By backing Australian apprentices and trainees we're getting more people ready for the jobs that will set them up for life," Morrison said. “These investments will mean more skilled workers, lower unemployment, and a stronger future not just for apprentices and trainees, but for Australia."

Minister for Employment, Workforce, Skills, Small and Family Business Stuart Robert said the measures announced in the 2022-23 Budget would ensure a pipeline of skilled workers for the Australian economy-delivering generational skilling.

“Our efforts to protect the next generation of Australian workers from the effects of the Covid-19 pandemic have paid off, with low unemployment and a record number of trade apprentices," Robert said. "The Morrison Government will now build on that success, so that Australians have high-quality well-paid jobs, and businesses have the trained staff they need to thrive well into the future. We will provide a record AUD 7.8 billion (USD 5.8 billion) this financial year to deliver generational skilling across the nation, with a heavy focus on supporting apprentices and trainees.”

“The Boosting Apprenticeship Commencements and Completing Apprenticeship Commencements wage subsidies will be extended for an additional three months,” Robert said. "This takes our investment in Australian Apprenticeships under Boosting Apprenticeship Commencements, Completing Apprenticeship Commencements to AUD 5.8 billion (USD 4.3 billion) and leverages the momentum over the past 18 months that saw the number of trade apprentices in-training supercharged to a record level of around 220,000."

Minister Robert said these programs will be replaced by a new system of incentives from 1 July 2022 to continue to drive apprenticeship numbers even further.

The government is also providing AUD 38.6 million (USD 28.9 million) to encourage more women to undertake non-traditional trade apprenticeships through guaranteed Gateway Service places, in-training support and targeted mentoring services to be provided by the Australian Apprenticeship Support Network.

Minister Robert said the successful JobTrainer Fund will be expanded, with the government investing a further AUD 49.5 million (USD 37.2 million) over two years, contingent on matched funding from states.

Building on the success of JobTrainer and the record investment in skills, the Morrison Government is committing up to AUD 12 billion (USD 9.0 billion) over five years in support of the new National Skills Agreement (NSA) with states and territories.

"Under this measure, the Morrison Government is providing an additional AUD 3.7 billion (USD 2.7 billion) as part of the 2022-23 Budget, on top of the AUD 8.3 billion (USD 6.2 billion) National Skills and Workforce Development Specific Purpose Payment,” Robert said. "The National Skills Agreement, once agreed, will transform the way all governments support vocational education and training by ensuring greater national consistency, and that investment decisions are transparent, evidence-based and linked to skills need.

Minister Robert said the Morrison Government is implementing a new National Workforce Strategy to underpin a new workforce policy environment. The strategy outlines a new vision for a more ‘dynamic, responsive’ and capable workforce to drive employment, economic growth, productivity and prosperity.

Meanwhile, unemployment in Australia is forecast to fall to 3.75% by the September quarter, under modelling in the budget. Treasurer Josh Frydenberg’s office said this would be the lowest jobless figure since August 1974.That figure would also be 3% lower than what the 2020-21 budget, delivered in the first year of the Covid-19 pandemic, had forecast for unemployment.

The Treasury expects wages growth to outstrip inflation by 0.25% in 2022-23, 0.5% in 2023-24 and by 0.75% in 2024-25, driven by higher nominal wages growth and lower inflation.