AI-ronic skills shortage hope

As artificial intelligence (AI) reshapes the workforce, many young Australians are pivoting away from traditional white-collar careers in favour of skilled trades. This growing trend, coined the “AIxiety Pivot”, is largely driven by concerns over job security, the cost of education and a desire for more control over career paths.

According to a Zety report, 65 per cent of Gen Z workers no longer believe a university degree will protect them from AI-driven job losses, especially in sectors like customer service and office administration, which are more vulnerable to automation. As a result, an increasing number of young Australians are turning to trades, where technical and manual skills are less likely to be replaced by machines.

Apprenticeships Are Us Australia GM Phil Cooksey attributed a sharp rise in apprenticeships, from 103 in the 2021–2022 financial year to 240 in 2023–2024, to “the demand for skilled trades” that “offers long-term job security and stability.”

Social media influencers are also playing a role in reshaping the perception of trade careers, presenting them as not only secure and lucrative but also entrepreneurial. This shift, combined with the growing awareness of the skills shortage, has led to apprentices receiving direct job offers from employers, bypassing the traditionally lengthy and uncertain job search process.

The rising cost of university education is another significant factor driving Gen Z’s move towards trades, prompting many young Australians to seek alternatives that offer financial stability without the burden of debt. A recent survey by Resume Builder found that 42 per cent of Gen Z workers, including those with degrees, are either considering or already working in skilled trades.

“Tradies in almost every industry are needed Australia-wide due to ongoing skills shortages, which means they often have the flexibility to name their price,” says Cooksey, adding that workers in Australia can earn between $70,000 and A$100,000 annually after just a few years of experience.

To meet this rising demand, Vocational Education and Training (VET) institutions in Australia are adapting their programs to equip Gen Z with the skills they need. They are increasingly blending hands-on training with advanced technologies, such as 3D simulations and virtual environments, to appeal to a digitally savvy workforce. Many VET programs are also collaborating with industry partners to align curriculums with market needs, offering apprenticeships and internships that provide clear pathways to employment.

The growing shift toward skilled trades is expected to have a positive impact on Australia’s economy, addressing the country’s significant skilled labour shortages in sectors such as plumbing, welding, electrical work, carpentry, machinery operation, HVAC and construction. 

As Mr Cooksey puts it: “There’s still no robot that can lift your car bonnet and fix your gearbox, or climb a roof to lay tiles.”