Reports of the death of apprenticeships are greatly exaggerated, a new study of the training system finds.
The report from Victoria University's Mitchell Institute, released on Monday, says although politicians regularly talk about a crisis in the sector the situation is not nearly as serious.
Author Peter Noonan says the cause is the common use of the term "apprenticeship" to lump together both apprenticeships and traineeships when they're quite different things.
"Politicians and industry leaders understand the difference between apprenticeships and traineeships, but often present information relating to both as being about apprenticeships only - creating a misleading picture about the state of the traditional trade-based apprenticeship system," Professor Noonan says.
Apprenticeships are typically a four-year education in a traditional trade, such as baking, carpentry, hairdressing or plumbing.
Traineeships were created to reduce youth unemployment are are mostly one-year engagements in areas like retail, hospitality, child care or administration.
A 2012 change in government incentives for traineeships - which Professor Noonan says was soundly based - led to their numbers dropping dramatically.
While apprenticeship numbers have dropped slightly in recent years, the long-term trend is relatively stable.
The report says the recent decline in trade apprenticeships is mainly because of broader labour market factors, not funding cuts with the training regime still fully funded by states and attracting commonwealth incentives for employers.
Professor Noonan says claims of a "crisis" distract from other important factors that policy-makers should be taking into account.
"If we have learned anything about the VET system in recent years, it is that incentives should only be provided where there is demonstrable public benefit, not to create a market in government subsidies," he said.
"Both apprenticeships and traineeships play a critical role in building the skills base for our future workforce - this is the only goal that should determine reform."
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