Despite efforts to prepare and connect out-of-work job seekers with employment opportunities, businesses still report difficulty finding qualified employees. At the same time, millions of American workers remain unemployed, many of them for extended periods. This mismatch has persisted despite public investments and rising enrollment in postsecondary education and training programs.

Registered Apprenticeship is an important component of the potential education and training services the workforce system can use to address the needs of businesses, job-seekers, and incumbent workers. Sector initiatives, with their strong connections to employers in target industries and their ability to bring together partnerships to improve the functioning of regional labor markets, are well-positioned to incorporate registered apprenticeships into their suite of services. In this newsletter, we will make the case that more sector initiatives ought to consider doing so.

Registered Apprenticeship Has Been Demonstrated Effective

Registered Apprenticeship (RA) offers job seekers immediate employment opportunities that usually pay higher than average wages and offer continued career growth. Apprentices learn highly-sought after skill sets and earn portable credentials from the U.S. Department of Labor that are nationally and often globally recognized. These credentials are also recognized by the U.S. Department of Education, offering apprentices the opportunity to apply their apprenticeship training to two- and four-year college programs. Registered Apprenticeship programs are offered by tens of thousands of employers, industry associations, and labor-management organizations that use the model to grow highly-skilled workers trained to meet current industry specifications, ensure workplace safety, and increase productivity.

In a 2012 study entitled An Effectiveness Assessment and Cost-Benefit Analysis of Registered Apprenticeship in 10 States, Mathematica Policy Research found that:

• RA participants had substantially higher earnings than did nonparticipants. In the ninth year following program enrollment, RA participants earned an average of $5,839 more than similar nonparticipants. Over a career, the estimated earnings of RA participants are an average of $98,718 more than similar nonparticipants. For RA participants who completed their program, the estimated career earnings are an average of $240,037 more than similar nonparticipants.

• The benefits of the RA program appear to be much larger than the costs. Over the career of an apprentice, the estimated social benefits of RA exceed the social costs by more than $49,000.

• Female apprentices expressed positive views of RA but recommended some changes to promote women’s success. Female apprentices viewed their participation in RA as a pathway to career advancement and higher pay. Suggestions for strategies to promote the success of women in RA included targeted outreach and information, support for basic skills development, assistance with child care, further efforts to combat harassment, and facilitating peer support.

Federal Investment in Registered Apprenticeship Is Increasing

On April 16, 2014, the President and Vice President announced new federal investments using existing funds to support “job-driven training,” such as apprenticeships, that will expand partnerships with industry, businesses, unions, community colleges, and training organizations to help workers acquire the skills they and businesses need. Employers, unions, and foundations are joining these efforts with new commitments to support job-driven training.

Through the American Apprenticeship Initiative, the U.S. Department of Labor is making $100 million in existing H-1B funds available for grants to reward partnerships that help more workers participate in apprenticeships. The new grants competition, whose launch is eagerly anticipated this fall, will focus on partnerships between employers, labor organizations, training providers, community colleges, local and state governments, the workforce system, non-profits, and faith-based organizations that:

• Launch apprenticeship models in new, high-growth fields: Many fast-growing occupations and industries with open positions, such as in information technology, high-tech services, healthcare, and advanced manufacturing, have an opportunity to adopt and adapt apprenticeship programs, to meet their skilled workforce needs.

• Align apprenticeships to pathways for further learning and career advancement: Apprenticeships that embed industry-recognized skills certifications or reward workplace learning with college credit provide an affordable educational pathway for those who need to earn while they learn, and apprenticeships linked to pre-apprenticeship programs can help more Americans access this training and get on an early pathway to a good career.

• Scale apprenticeship models that work: Across the country, there are pockets of excellence in apprenticeship, but all too often these successful models are unknown in other regions or to other employers. These grants will build from strength and invest in innovations and strategies to scale apprenticeships – including to market the value of apprenticeships, make them more attractive to women and other Americans who have been underrepresented, increase the return on investment for workers and, or build national and regional partnerships to expand apprenticeships

In addition, the U.S. Departments of Labor, Education, and Veteran Affairs are reforming their programs to enable the use of education benefits for apprenticeships:

• Streamlining GI Bill benefits for apprentices. Through a new partnership between the Departments of Veterans Affairs and Labor, employers now have a fast-track for their veteran employees to access their GI Bill benefits for registered apprenticeships, helping thousands more veteran apprentices receive the benefits they have earned.

• Connecting apprentices with college credit. The Registered Apprenticeship College Consortium (RACC), a partnership among community colleges, national accreditors, employers, and major apprenticeship sponsors, will make it possible for apprenticeship graduates to earn credits that will transfer to any community college in the consortium they attend. Founding members include large state systems like Ohio and Wisconsin. Since it was launched by the Vice President, 33 more colleges and systems have started the process, including the state system of North Carolina, to join the consortium.

Apprenticeships have also been included as an important strategy in the Workforce Innovation and Opportunity Act (WIOA) in the areas of State and Local Board Membership and as an expansion of industry sectors for apprenticeship programs serving youth. (For more details, see this side-by-side comparison between WIA and WIOA prepared by the National Skills Coalition).

Sector Initiatives Are Well-Positioned for Registered Apprenticeship

Sector initiatives – regional, industry-focused workforce partnerships – develop their strategies in the context of the regional economy, the local policy environment, and particular employers’ needs. Their strategies are also informed by their mission, target population, and influence or position within the local workforce system and with local public and private funding agencies. These sector initiatives bring a deep understanding of their target industry sectors and strong relationships with employers in those sectors. They also seek to develop systemic solutions to problems facing businesses and workers in their sectors of focus, often through development of new partnerships and alignment of partner resources. For these reasons, they are uniquely positioned to expand the apprenticeship model by promoting the successful adoption of existing registered apprenticeships and the development of innovative new apprenticeship models.

Despite the many benefits, expanding registered apprenticeships will not be easy. As the Working Poor Families Project points out in their report, Improving Access to Apprenticeships: Strengthening State Policies and Practices,

“Any attempt at expansion will wrestle with several challenges regarding employer engagement, enrollment of disadvantaged workers, high training costs, and low completion rates. With these challenges come opportunities to build stronger linkages to postsecondary and workforce development systems to ensure publicly supported skill-building efforts align to labor market demands.”

In addition to marshalling their strong industry and partner relationships, sector initiatives who want to adopt the registered apprenticeship approach must also avoid numerous pitfalls and learn from others who have gone before them.

Towards that end, NNSP is currently funding two sector initiatives – Partners for a Competitive Workforce (PCW) and Wisconsin Regional Training Partnership (WRTP) – to document the lessons they have learned in developing and implementing their apprenticeship models in manufacturing. As recipients of NNSP’s Strategic Venture Fund grants, PCW and WRTP will develop reports to share their experiences and best practice recommendations with other sector practitioners. NNSP expects to release these reports in early December.

In addition, NNSP will feature “Sector Initiatives and Registered Apprenticeships” as one of three tracks in the 2014 NNSP Virtual Conference, which will take place online December 2-12. In separate interactive workshops, conference attendees will have the opportunity to learn first-hand from PCW and WRTP about the lessons they have learned in developing and implementing their apprenticeship models. It is NNSP’s hope that, as a result, sector initiatives around the country will find both encouragement and support to consider incorporating Registered Apprenticeship into their own services.

Resources:

1. FACT SHEET - American Job Training Investments: Skills and Jobs to Build a Stronger Middle Class, The White House, Press Release (April 16, 2014), available at: http://www.whitehouse.gov/the-press-office/2014/04/16/fact-sheet-american-job-training-investments-skills-and-jobs-build-stron

2. Registered Apprenticeships FAQs, U.S. Department of Labor, Employment and Training Administration (DOLETA), available at: http://www.doleta.gov/oa/pdf/Registered_Apprenticeship_FAQs_2014.pdf

3. American Job Training Investments: Skills and Jobs to Build a Stronger Middle Class, U.S. Department of Labor, Employment and Training Administration (DOLETA), available at: http://www.doleta.gov/oa/pdf/AJTI_Fact_Sheet.pdf

4. American Apprenticeship Initiative, U.S. Department of Labor, Employment and Training Administration (DOLETA), available at: http://www.doleta.gov/oa/aag.cfm

If you're not already on NNSP's mailing list to receive our upcoming publications about Registered Apprenticeship and your invitation to the 2014 NNSP Virtual Conference, sign up now at http://www.nnsp.org/nnsp-updates.html.

Better yet, join NNSP and receive all the benefits of membership while supporting our work on behalf of the sector field. For more information, see below.

Hot Topics for Sector Initiatives | Dec. 2nd-12th
An NNSP Virtual Conference

Please save December 2-12, 2014 to join the National Network of Sector Partners (NNSP) for a virtual conference on hot topics for sector initiatives. NNSP is the national association for sector initiatives and their supporters and is an initiative of the Insight Center for Community Economic Development. The conference features important policy and practice lessons from the sector field on topics including:

• Registered Apprenticeships
• Sector Initiatives and Career Pathways
• Improving Employment Outcomes for People with Criminal Records

The conference is intended for community college, public workforce, and community-based workforce development leaders seeking examples of the most effective program models; government representatives, policy-makers, researchers, and advocates seeking examples of supportive policy; and business and labor leaders and others invested in building a skilled workforce. It will feature keynotes, webinars, and online discussions focused on helping you meet industry and job-seeker/worker needs with the latest innovations from the field - all from the comfort and convenience of your desk.

Look for your personal invitation soon!

Join NNSP in our work on behalf of sector initiatives!

NNSP is a national network dedicated to promoting and increasing support for sector initiatives - regional, industry-focused workforce development partnerships that increase access to good jobs and/or improve job quality in ways that strengthen an industry's workforce. Our members include sector initiatives, policy-makers, industry and labor leaders, researchers, advocates, funders, and many others.

We invite you to join us or to renew your membership.

Through NNSP, our members:

• Stay informed about new ideas, best practices, public policies, funding opportunities and industry trends through NNSP newsletters and publications
• Build capacity to implement the most innovative and effective workforce development practices through NNSP webinars, presentations, and conferences
• Receive assistance through staff consultation, peer connections, strategic venture grants, and sector-specific learning products
• Connect with peers to exchange solutions to shared challenges through NNSP events and introductions to other sector initiatives facilitated by NNSP staff
• Lead the field by staying informed about - and participating in - NNSP's policy, research, and funding-related efforts on behalf of sector initiatives nationwide

If you believe, as we do, that sector initiatives are the most effective way to meet industry needs while increasing access to good jobs, improving job quality, supporting job creation, and achieving employment equity, join NNSP or renew your membership today!