Why employers are struggling to offer the apprenticeships young people are asking for

Apprenticeships have never had a better reputation. As university costs continue to rise and employers place greater value on practical skills, more young people are looking at apprenticeships as a direct route into employment. Yet despite growing interest, apprenticeship opportunities remain limited across much of the UK. While politicians continue to promise more opportunities, employers face barriers to creating them.

According to Oliver Sidwell, careers expert and co-founder of Higherin, the issue is not a lack of enthusiasm for apprenticeships themselves, but the realities businesses face when trying to deliver them. “There’s a misconception that employers are unwilling to invest in young people,” says Oliver. “The truth is many businesses recognise the value of apprentices and would like to hire more of them. The challenge is that taking on an apprentice has become increasingly difficult to justify financially, particularly for smaller employers.”

The cost of training the next generation
For many businesses, apprenticeships represent a long-term investment rather than an immediate solution to staffing shortages. Apprentices require training, supervision and dedicated support before they become fully productive members of a team.

“When a business takes on a new apprentice, they are effectively committing to several years of development,” Oliver explains. “That means dedicating experienced staff to mentoring, covering training requirements and accepting that there will be a period where the apprentice is learning rather than contributing at full capacity.”

The pressure on smaller businesses
The impact is being felt most by small and medium-sized enterprises (SMEs), many of which already face tighter financial pressures than larger employers.

“A large organisation might have dedicated HR teams and established training programmes,” says Oliver. “A business with twenty employees does not have those resources. Every hour spent on administration or supervision is time that could have been spent serving customers or generating revenue.”

Rising employment costs have only intensified the challenge. SMEs are contending with higher wages, increased National Insurance contributions and broader economic uncertainty, making long-term recruitment commitments harder to make. When employers are focused on managing costs and protecting margins, apprenticeships can feel like a luxury rather than an investment. That’s especially true in sectors where businesses are already struggling to recruit skilled staff,” he explains.

There is also growing concern that the apprenticeship system itself has become overly complex.

“Many employers tell us they are put off by the bureaucracy involved. Businesses want to focus on training young people, not navigating complicated funding rules, compliance requirements and administrative processes.”

Young people are ready for apprenticeships
At a time when industries ranging from engineering and construction to technology and healthcare continue to report skills shortages, thousands of young people are competing for a relatively small number of apprenticeship places.

“We see huge demand from school leavers,” says Oliver. “For many young people, an apprenticeship is no longer a second choice behind university. It’s their preferred route into a career because it offers work experience, earnings and qualifications at the same time.”

Research consistently shows that apprenticeships can lead to strong long-term earnings and progression opportunities. Yet access remains constrained because employer demand has failed to keep pace with interest from applicants.

“If the government is serious about tackling skills shortages, the conversation cannot focus solely on encouraging young people to apply,” he argues. “We also need to understand what is preventing businesses from creating more opportunities in the first place.”