The federal government will include a wage subsidy for apprentices worth $1 billion in the 2020 Budget.

Organisations representing apprentices have been warning of an impending skills shortage, with thousands of apprentices and trainees laid off amid the pandemic.

The government subsidy will pay up to half the wages of 100,000 apprentices.

Global Apprenticeship Network CEO Gary Workman told Jim Wilson the provision is a “great start”, and will help ease youth unemployment with Year 12 soon to graduate.

“Anything that helps small businesses and gives them an encouragement to take on a new young person in a skilled trade is fantastic.”

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