Apprenticeships are an overlooked path to upward mobility
College is not for everyone. But try telling that to most middle-class parents, especially those who did not have the opportunity to attend college themselves.
Since the end of World War II, the college degree has become the Holy Grail of upward socioeconomic mobility. Yet a good number of today’s Gen Z students prefer to pursue vocational paths other than those that require a bachelor’s degree. Their parents are likely to admonish them that without at least bachelor’s degree, the best job you’ll find is supervisor at Taco Bell.
Meanwhile, to successfully compete in the 21st century, tourism-dependent cities like Miami, Las Vegas and New Orleans must diversify beyond service sector jobs in leisure and hospitality. These jobs are low-skilled, poorly paid and plagued with high turnover. To maintain and attract skilled labor, these communities will need to build a skilled workforce in higher value-added services such as IT, finance and health care.
One very promising way to do so is for businesses to offer apprenticeships, a proven vehicle for upskilling the workforce. Apprenticeships are training programs that combine hands-on experience with classroom instruction, acquiring specific skills while earning a wage. The skill acquisition embodied in these programs is directly tailored to the specific needs of the employer.
Apprenticeships have experienced a resurgence over the last decade as a proven pathway to skilled employment. The number of apprenticeships registered with the Department of Labor exceeds 600,000, an increase of more than a two-thirds from a decade ago. Meanwhile, college enrollment continues to decline. As paid on-the-job training combined with classroom instruction meets the needs of many Gen Zers, one can expect to see such training opportunities for the foreseeable future.
Apprenticeships go far in alleviating workforce challenges. They close the skills gap, especially in manufacturing, where hands-on training is critical in key areas such as machining and robotics. Apprenticeships help reduce turnover and retain talent. According to workforce development expert Amy Murphy, “apprenticeships help alleviate this issue by fostering loyalty and commitment” — a win-win for both employee and employer.
Apprenticeships also enhance productivity and drive innovation, suggesting improvements and solutions to propel a company forward. At a national level, apprenticeships have a significant effect on addressing the aging workforce, where over half of all workers are between 45 and 65 — workers whose organizational knowledge is vital to maintain a competitive economy.
Additionally, apprentices are guaranteed to increase their earnings. According to Jobs for the Future, people who complete Registered Apprenticeships — programs that have been validated by the Department of Labor or a state organization — can earn $300,000 more over their lifetime than their peers. Additionally, apprentices typically have lower unemployment rates due to their specific skill acquisition.
Enhanced productivity for employers is another economic effect, as apprentices contribute to a skilled workforce and lower recruitment costs. Other impacts are economic growth in the local economy and industry competitiveness on a national level. Studies have shown that employers can see a return of nearly $1.50 for every dollar invested in apprenticeship programs due to higher productivity and lower turnover rates.
Apprenticeship programs in the U.S. offered by state governments and organized labor have been particularly successful. These include South Carolina’s Apprenticeship Carolina and the Wisconsin Apprenticeship Program. The North American Building Trades Union has trained millions of workers over the years and has been acclaimed for its high completion rates and successful job placements.
Unfortunately, apprenticeships mostly remain outside the mainstream in America. The U.S. workforce could host over 830,000 new apprenticeship opportunities per year, leading to $28.5 billion in wage increases. And while both the Trump and Biden administrations have enacted measures to support apprenticeships, the U.S. still comes up short.
Take reshoring, a major bipartisan goal. Reshoring — returning manufacturing to America from overseas — won’t succeed without a skilled workforce pipeline. Yet the manufacturing sector will have nearly 2 million unfilled jobs by 2033, according to Deloitte and the Manufacturing Institute.
Apprenticeships are not a panacea for our workforce challenges, but they can provide a promising opportunity for social mobility and economic advancement while bolstering national competitiveness. The U.S. would be wise to support and expand such initiatives throughout the nation.
Jerry Haar is a professor of international business at Florida International University. He is also a fellow at the Woodrow Wilson International Center for Scholars and the Council on Competitiveness.
Date: |
-
The Hill - Politics
Which path will the Fed take to ease monetary policy?
There is little historical experience to guide policymakers or investors, because the current economic cycle is like no other in U.S. history.3 hours ago - Federal Reserve -
VentureBeat - Tech
Matchday launches Matchday Champions soccer card mobile game
Matchday debuted its new soccer digital card game Matchday Champions in early access today on iOS and Android.7 hours ago -
The Guardian - World
EU to offer new youth mobility scheme in test of Labour ‘reset’ with Brussels
Officials warn repeat of Tory rejection could dent new government’s hopes of pacts on defence and agriculture. Fresh proposals to allow young people to move between the UK and the EU will be ...2 hours ago - European Union -
Politico - Politics
Johnson’s spending path ahead unclear after short-term bill failure
Yesterday -
CBS News - Top stories
Change to Nebraska electoral system could impact Harris path to victory
A potential "winner-take-all" electoral system in Nebraska could alter the path to victory for Vice President Kamala Harris. CBS News political director Fin Gomez has more.21 minutes ago -
CBS Sports - Sports
Aaron Rodgers unlocks mobility in Jets' blowout win vs. Patriots, proves Achilles injury no longer concern
New York defeated New England 24-3 in its home opener4 hours ago - NFL
More from The Hill
-
The Hill - Politics
Putin's conceptual error: A language does not a nation make
Russian President Vladimir Putin's belief that Russians and Ukrainians are one people is based on a highly inaccurate reconstruction of Russian and Ukrainian history, and the shared language of the ...48 minutes ago -
The Hill - Politics
Red states ask court to reject Google privacy settlement
A group of Republican-led states have asked a U.S. appeals court to reject a $62 million consumer privacy settlement with Google, citing large amounts of money awards going to class members' ...52 minutes ago - Google -
The Hill - Politics
Nate Silver finds Harris with edge on Trump for first time since Aug. 28
Vice President Harris has taken the lead in pollster Nate Silver's election forecast and model for the first time since Aug. 28. Harris now leads in the polling aggregation with 48.9 percent to ...1 hour ago - Donald Trump -
The Hill - Politics
A lesson for CBS: Live fact-checking is incompatible with good debate moderation
ABC News moderators Lindsey Davis and David Muir fact-checked former President Donald Trump during a presidential debate, raising questions about the impartiality of media network debate events and ...1 hour ago -
The Hill - Politics
Jill Biden: 'We have to have a peaceful transfer of power' in January
First lady Jill Biden emphasized the importance of a “peaceful transfer of power” in January in an article from NBC News that published Friday. “I think we have to vote. As Americans, you know, ...1 hour ago