Isle of Man Government says its apprenticeship scheme is ‘as popular as ever’ after warnings there is a skilled labour shortage.

Construction Isle of Man (CIoM) says there could be a crisis if more is not done to improve apprenticeship take up.

The industry body says it raised the alarm more than a year ago, over the impact of changes made by the Department for Education, Sport and Culture (DESC) to the apprenticeship scheme in April 2024.

But DESC has hit back and says is ‘remains fully committed to supporting apprenticeships’ as a valuable route into skilled employment for young people.

A spokesman said: ‘We recognise the construction industry’s essential role in our national infrastructure and economic development and we are mindful of the wider challenges currently faced by the sector.’

Following a full review, a number of changes were introduced to the Apprenticeship scheme in April 2024.

The spokesman added: ‘It is important to note that (DESC) continues to fully fund training and assessment for eligible apprentices irrespective of the size of the employer.’

DESC says the changes made in April last year have improved the Apprenticeship Scheme which includes a 50% increase in incentive payments to employers who have fewer than 10 employees but which has been removed for employers with more than 10 employees, standardised support across all trades, recognising progression and clarification within the scheme regarding paid release for the apprentice to be at the same rate as the employee’s normal rate

The spokesman said: ‘With over 240 applications already received in the last year, it would seem the scheme is as popular as ever.

‘Since the revisions to the Apprenticeship scheme, 35 new businesses have opted to participate who had not done so before, demonstrating that apprenticeships remain a strong, practical option for young people.

‘As students receive their results this summer, we encourage them to consider this fully funded route into skilled, meaningful work—benefiting both themselves and the Manx economy.

‘We remain open to continued dialogue with the construction sector to ensure the scheme remains fit for purpose in a changing labour market.’

CIoM issued a strongly-worded statement urging the government to address its concerns.

The statement says: ‘We are now facing the exact crisis we predicted with a significant decline in apprenticeship uptake, which threatens the future pipeline of skilled workers in a sector that already suffers from labour shortages and an ageing workforce.

‘This is not only a setback for the construction sector - it is a blow to the broader economy and to young people in the Isle of Man who have long relied on apprenticeships as a valuable and accessible route into skilled employment.’

‘This move away from traditional employment models has undermined long-term workforce planning and training. Apprenticeships have been hit hardest.

‘Larger employers bear the unseen cost of their training, only to see apprentices leave for self-employment or move on to other firms once they become competent.’

CIoM says there needs to be government grants to make the apprenticeship model more stable.

The statement says: ‘The current approach is not working and urgent action is required to protect the long-term health of an industry that plays a critical role in our national infrastructure and economic development.’