Roughly one third of apprentices enrolled in the program failed to complete their studies in 2010 while the dropout rate for student enrolments was far higher, according to the MSA Environmental Scan 2012 report. .

Some 8346 students were enrolled in the MSA courses for TCF in 2010 but only 1415 completed their studies.

For apprentices, the number enrolled was 748 but only 493 finished that year's program.

While the results in 2008 also demonstrated an attrition rate, they were better than the more recent data revealed.

Some 802 apprenticeship enrolments were taken that year with 728 completing while 6635 students were enrolled in MSA courses and 1739 finished.

"The completion rates are a worrying sign because they are dropping off," said Jo Kellock, Council of Textile & Fashion Industries of Australia CEO.

"They are a frightening statistic."

Concerning also was that the completion rates could impact funding for TAFE institutions.

Under a new funding formula, they are expected to receive monies not per enrolment but rather, for students continuing the program.

The MSA report said employment in TCF enterprises had decreased by 128,000 and gross value-add dropped by 6.8 per cent between 2009-10 and 2010-11 from $4.6 billion to $4.3 billion.

However, the TCF sector still contributed more than $1.6 billion to Australia's total GDP and employed around 48,000 people in the financial year ending June 2009.

At that stage, the industry was made up of 8000 enterprises consisting of 49 per cent sole traders while 44 per cent employed between one and 19 people and six per cent had more than 20 staff.

The report noted a very strong increase in exports of textiles fibres due to a combination of 'bumper' cotton growing season and market demand with an even bigger harvest expected in March 2012.

However, little change was noted in the export of more processed products.

"In 2010, merchandise exports for TCF totalled $1.881 billion," the report said.

- Dawn Adams