A potential hike in TAFE fees would make apprentice and trainee programs unaffordable for many young people, the NSW Greens say.
The caution comes as internal NSW Treasury figures reportedly show a drop in apprentices and trainees employed by businesses paying payroll tax.
The figures show the number fell from 56,427 to 54,017 between 2011 and 2012.
Greens MP John Kaye said a proposed $750 a year increase to TAFE fees would hit young people taking up trades training from 2014.
"Next year TAFE students will face a massive round of increases with some paying $750 more if the independent pricing tribunal's recommendations are accepted," Dr Kaye said in a statement.
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"Skills training is becoming unaffordable for a growing number of NSW's school leavers.
"Young people are being turned off the skills training by unaffordable fees and the barriers to entry are set to get a whole lot bigger."
The state opposition is calling on the government to do more to address skills shortages and the high rate of youth unemployment.
Dr Kaye urged the government to abandon its plans to make "students pay more and to strip TAFE of a big slice of its budget".
