Studentworks, at Rocherlea, was established 40 years ago by Launceston woman Marjorie Knox as a work experience program.

Today, the workshop offers an alternative hands-on education experience for at risk young people.

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However, the state government announced this week that teaching positions would be withdrawn, while government funding officially ceased yesterday, leaving the school's boardlikely to end operations by the end of the year.

This prompted Labor candidate for Bass Michelle O'Byrne to hit out at the state government.

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"The decision by government to remove funding will mean that Studentworks has no option but to stop offering courses," she said.

"That will fail the students for who this program is the pathway to reengaging with learning and transition to employment opportunities."

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Ms O'Byrne said Studentworks had supported Tasmanian students on career pathways and believed there was no solid reason for the government to cancel funding.

"It's been an incredibly successful program," she said.

A Department of Education spokesperson said they would continue to work with the Studentworks Board to consider where Studentworks fits in the broader education and training provision.

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"Department funding for Studentworks, including support for transition, remains in place until the end of 2022," they said.

"The Department and Studentworks Board Chair are in regular communication and are due to meet again next week." They said the government acknowledged the contribution of Studentworks over an extended period of time and would consider further advice .

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