More than 20,000 new apprenticeships and traineeships will be created in South Australia over the next four years, Premier Steven Marshall says.
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The state government will contribute $100 million to the funding, while the federal government has committed at least $87 million from its Skilling Australians fund.
"This investment is a significant shot-in-the-arm for our state's skills training sector and will help ensure more South Australians are job-ready for key growth industries such as defence," Mr Marshall said on Thursday.
He said the funding delivered on an election commitment of the new Liberal government.
The premier made the announcement alongside Minister for Industry and Skills David Pisoni at Dematec Automation, a company specialising in industrial automation, robotics and process-control for a range of industries.
Mr Pisoni said apprentices and trainees add value to local operations and the entire state.
"Under the previous Labor government we have seen a steady decline in the number of apprenticeships and traineeships in South Australia and we are committed to turning that around," he said.
According to data from the National Centre for Vocational Education and Research, there were 14,725 apprentices and trainees in South Australia at the end of 2017, down from 30,690 in 2013.
Australian Associated Press