Local Jobs First Commission Legislation
Australia’s efforts to support local jobs and rebuild domestic industries may be hindered by a worsening shortage of skilled tradespeople, according to Earlypay CEO James Beeson.
The NSW Government introduced the Local Jobs First Commission legislation in late May. This aims to prioritise local workers, suppliers, and SMEs in government procurement while enhancing the state’s skills base through mandatory training on major projects.
James Beeson, a proponent of the SME sector, remarked that while the bill supports SMEs and local supply chains, it relies on a stronger vocational training pipeline to meet job demands. “This is a good reform in principle because it backs local business and recognises the importance of building capability at home,” Beeson said.
Concerns Over Insufficient Training
Despite a slight increase in trade commencements reported by the National Centre for Vocational Education Research, a broader decline in apprenticeship commencements has persisted for several years. Recent data shows a nearly 10% drop in trade apprenticeship commencements in the 12 months leading to September 2025.
This decline indicates a disconnect between government policies and workforce realities. Beeson highlighted a significant reduction in apprenticeship course completions and a rise in temporary skilled visas, which have increased fivefold since three years prior. “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,” Beeson stated.
Beeson mentioned that skilled migration has an important role to play, but it cannot be a substitute for investing in the next generation of Australian tradespeople. “If governments want more local jobs and stronger domestic manufacturing, they have to make it easier for businesses to train apprentices, not harder,” he said.
Approximately 9,800 temporary skilled visas were granted in 2024–25 for workers in the top 25 apprenticeship occupations, which is around five times higher than three years earlier. This reliance on imported skilled labour points to a deeper structural problem.
The NSW Government is urged to address these challenges to ensure the success of the Local Jobs First Commission initiative and support a sustainable future for Australia’s domestic industry.
