Apprenticeship

How Apprenticeship Programs Help Solve the Labor Shortage

A Registered Apprenticeship Program can help your company attract and retain motivated employees for today and build a workforce pipeline for the future.

How Apprenticeship Programs Help Solve the Labor Shortage
Alex Mahoney

Alex Mahoney

Sr. Account Executive

No matter what industry you work in, you are likely aware of the current labor shortage. As your organization seeks viable solutions, you’d be wise to consider a Registered Apprenticeship Programs to help remedy your talent woes.

These regulated, work-based learning programs create pathways to the workforce for apprentices and a skilled labor workforce for companies. Many used to think that Apprenticeships only apply to trades,  but they now span just about every industry imaginable, from IT to Healthcare. 

Apprenticeships create a debt-free pathway to a long-term career for apprentices and a pool of highly skilled and personally trained company workers. These programs are well worth your attention, especially if the labor shortage is getting in the way of your organization’s growth or success.

 

The Labor Shortage in 2023

A labor shortage happens when there are not enough workers in the labor market to meet quickly growing talent needs.

The latest data from the U.S. Chamber of Commerce shows over 10 million job openings in the U.S. but just 6 million unemployed workers. When broken down by industry, U.S. Chamber of Commerce statistics reveal that durable goods manufacturing, wholesale and retail trade, education and health services, and other skilled labor sectors are most affected by the shortage.

This labor shortage didn’t spring up overnight. It has been building for a long time, and one of the forces driving this shortage of skilled workers is COVID-19. WHO reports over 6.7 million people succumbed to the virus or related health issues, while countless others struggle with its long-term effects. Many people also left the workforce to care for young children, meet the needs of aging parents, and face other personal challenges during the pandemic.  

Low wages also constrain the workforce. Many workers have left jobs for new opportunities with higher salaries. According to Randstad Employer Brand Research, 62% of workers worldwide named salaries as a top reason to switch jobs.

An aging population also limits the workforce. According to WHO research, the world's population over 60 will double by 2050. Birth rates in countries across the globe are also falling. These trends leave fewer people available to work.

The technology skills gap is also growing. McKinsey & Company research reveals that 87% of companies report a skills gap or expect to have one within a few years.

The skilled labor gap will persist, leaving employers needing new and innovative solutions to fill it. More employers are turning to Registered Apprenticeship Programs to help them develop and retain a skilled labor workforce.

 

Need help building your Apprenticeship Program? Check out our guide that covers  the basics. 

 

What are Registered Apprenticeships?

Registered Apprenticeships are structured training programs that combine on-the-job experience and related classroom instruction with wages that increase as apprentices master skills. Apprenticeships are sponsored by employers, labor unions, and trade associations, who work with training providers to provide individuals with the skills and knowledge needed to become proficient in a particular occupation.

In a Registered Apprenticeship Program, the employer and apprentice enter into a formal agreement that defines the expectations and outcomes of the program. The program typically lasts for a set period (usually 2-4 years), during which the apprentice receives supervised training and works toward meeting the standards for journey-level work in the occupation. Then, upon successful completion of the program, apprentices receive a nationally recognized credential, an offer for full-time employment, and even college credit and a degree in some cases

Apprenticeships are a win-win: the apprentice gets a debt-free pathway to a long-term career, and employers fill talent gaps with motivated and skilled workers. 

 

How Can Apprenticeship Programs Help the Labor Shortage?

Companies nationwide recognize Apprenticeship programs for their unique and promising abilities to fill talent needs across a broad spectrum of industries. Apprenticeship programs target and train people of all ages across all industries, not just the trades. If employers need the skill, they can build an Apprenticeship around it.

Registered Apprenticeship Programs are a win-win for apprentices and employers. Apprentices can kick start their careers as they are paid to learn and employers can train motivated individuals in skills the company needs.

The federal government is also recognizing the benefits of these programs. Federal grants are pouring out to create and scale apprenticeship programs. 

The U.S. Department of Labor is taking steps to expand Registered Apprenticeships across the U.S., to serve at least 1 million apprentices annually within five years. The steps include:

  • A $330 million investment in grants to states, employers, labor organizations, and workforce intermediaries to expand Registered Apprenticeship Programs. The government has set aside $50 million to support nine hubs that help employers design, develop, and deliver Apprenticeships.
  • Re-establishing the Advisory Committee on Apprenticeship to modernize Apprenticeship opportunities. 
  • Expanding Registered Apprenticeships for underserved populations via four new technical assistance centers.
  • Partnering with the Department of Commerce to address sector-based challenges, such as trucking and IT.

The Department of Commerce also aims to expand Registered Apprenticeships by launching the Good Jobs Challenge. This $500 million program will award grant funds to 32 companies to develop high-quality worker training systems and partnerships.

The Department of Education is stepping up as well. It has developed a Work-Based Learning Toolkit and an online course to create pre-Apprenticeship programs to help would-be apprentices develop the skills and knowledge they will need to succeed in Apprenticeships.

 

Related Content: IBM Looks to Solve Their Worker Shortage With Apprenticeships

 

Takeaway: Consider a Registered Apprenticeship Program to Fill Talent Gaps

The struggle is real. There aren't as many workers to go around. The labor shortage is worsening quickly, requiring employers to step outside the traditional hiring process. 

A Registered Apprenticeship Program can help your company attract and retain motivated employees for today and build a workforce pipeline for the future.

 

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