The Automotive Education Report from the Institute of the Motor Industry (IMI) for Q3 shows a 1% drop, year-on-year, in automotive apprenticeship starts and the industry trailing other sectors as the wider apprenticeship market grew by 8%.
It said use of levy funding by larger employers is at 52% and 15% percentage points below the all-sector average of 67%.
This means nearly half of automotive employers are self-funding apprenticeships at a time when financial pressures are increasing.
The new report also shows a decline in the youngest age group taking up automotive apprenticeships.
Whilst still accounting for the largest proportion of apprenticeship starts, the number of under 19s entering the workforce has fallen 5.2% year-on-year.
Emma Carrigy, head of research and public affairs at the IMI, said: “Our latest data shows that automotive employers remain committed to apprenticeship recruitment.
“However, with the sector largely populated by small businesses, the decline in automotive apprenticeship starts compared to growth across the market as a whole, points to the current system being difficult to navigate and access.
“There is no question that there is the demand for talent – vacancies are currently around 15,000. It is critical, therefore, that the apprenticeship reforms currently being finalised make the system simpler and more accessible to small employers.
“The decline in under 19s entering the workforce is also a concern. Hopefully this can be turned around as the government puts more focus on technical education in the school curriculum. It is vital that the sector has a strong talent pipeline as new and changing technologies become ever-more present, offering a huge range of exciting and diverse career opportunities.”
