Earlypay (ASX:EPY) CEO James Beeson says Australia’s push to support local jobs and rebuild domestic industry potentially risks being undermined by a deepening shortage of skilled tradespeople.
This news comes after the New South Wales Government introduced the Local Jobs First Commission legislation in late May 2026, which aims to prioritise local workers, suppliers, and small- and medium-sized businesses in government procurement.
Beeson says the bill has potential to support SME sectors and strengthen local supply chains, but abolishing and reducing incentives for businesses to take on apprentices — saving an estimated $300 million over five years — risks worsening the skills shortage.
“This is a good reform in principle because it backs local business and recognises the importance of building capability at home,” he says.
“But the hard truth is Australia does not currently have enough skilled tradespeople coming through the system to support the scale of local industry ambition being talked about.”
According to the National Centre for Vocational Education Research (NCVER), recent figures indicate a broader decline in trade apprenticeship starts underway for several years.
Trade apprenticeship starts were down nearly 10% in the 12 months to September 2025.
Beeson says these figures expose a mismatch between government policy and workforce reality.
Indeed Hiring Lab’s recent labour market analysis also highlights that apprenticeship course completions are 64% below 2012-13 levels, while around 9,800 temporary skilled visas were granted in 2024-25 in the top 25 apprenticeship occupations.
Earlypay’s CEO notes that Australia is dealing with weak productivity growth, housing shortages, skills shortages, and capacity constraints across major industries.
Apprentices and trainees make up 4.4% of Australia’s mining industry, with almost 11,000 workers in training, as reported by the Minerals Council of Australia.
Young Australians tend to be shying away from choosing careers in the sector for several years. As Mining.com.au reported, there has been a 63% decline in Australian mining graduates from 2014 to 2020.
Similarly, the US saw a 39% decline from 2016 to 2020.
A worldwide issue
Beyond Australia, Germany and Africa are also experiencing talent shortages within the sector.
In March 2026, Germany launched a digital platform to address the nation’s growing shortage of skilled workers. Specific sectors needing skilled workers include IT, engineering, construction, skilled trade, transport and logistics, hospitals, and schools.
Around 300,000 third-country nationals currently hold employment permits, with experts estimating that hundreds of thousands of new skilled workers are required each year to meet Germany’s labour market’s long-term needs.
At the same time, African economies are facing a dual challenge of skilled worker shortage, as well as not having enough quality jobs available to give workers an incentive to further build their skills.
Over 80% of African youth in school aspire to work in highly skilled occupations, but only 8% find such jobs.
The Organisation for Economic Co-operation and Development (OECD) reports that roughly 82% of all workers in Africa are employed informally, such as in low-pay, low-quality, and low-protection activities.
In comparison, this is only 52% in Latin America and the Caribbean, and 73% in developing Asia.
Earlypay is an Australian lender delivering flexible working capital finance solutions. The company supports thousands of Australian SMEs through solutions such as invoice finance and equipment finance.
Write to Aaliyah Rogan at Mining.com.au
Images: iStock & Earlypay
