Unraveling the Red Tape for Apprenticeship Opportunities

Apprenticeship programs offered by employers play a vital role in developing the construction workforce. They present paid opportunities for young people to learn while earning a wage and often lead to full-time career opportunities. At its core, apprenticeships are the backbone of training in the construction industry.

Policymakers, politicians and the public recognize the benefits of apprenticeship programs. Young people and job seekers are also interested in the opportunities that apprenticeships can offer.

However, according to a recent analysis by the Hechinger Report, it’s also evident that the demand for apprenticeships in the United States is eclipsing their availability. There are not enough apprenticeship vacancies open to meet the growing interest. The ongoing challenge is convincing employers to participate in apprenticeship programs, while noting the concerns employers might face when trying to create and sustain an apprenticeship program.

Here, we break down some of the factors and statistics highlighted in this report, while pointing to possible solutions for contractors debating if they should start their own apprenticeship program.

High Demand

According to the Hechinger Report, a representative for Texas-based nonprofit organization Edu-REACH — which helps students find apprenticeships in the state — said they have more learners than they have employers, and the employers are “really dang hard to find.”

Young people and potential apprenticeship seekers are eager for opportunities given the chance, and employers could benefit greatly from the untapped employment resource.

U.S. Department of Labor (DOL) figures show 679,142 Americans are involved in apprenticeships. That number is up 89 percent since 2014 — a substantial and promising increase. However, it’s under half of 1 percent of the entire United States workforce. The Hechinger Report shares that by comparison, 18 million Americans are enrolled in college.

The growth in interest in apprenticeship programs coincides with growing skepticism from the public about the need for college. Many young people are concerned with the debt incurred while earning a college degree and others feel they aren’t meant to take the college route.

According to an ECMC Group survey, a pool of 14- to 18-year-old students said learning skills on-the-job would be their ideal path to employment — a model more closely resembling apprenticeship, the report points out.

The Challenge: Reluctance of Employers

For many employers, offering apprenticeships comes down to several issues: apprenticeship programs are difficult to set up and require cutting through red tape. There’s also the misconception that they’ll have added expenses without seeing any return on investment.

Some of these misconceptions are well founded. In a blog posted by NCCER entitled Apprenticeship Programs Can’t Do It Alone, it was pointed out that red tape and rigid time requirements set by the DOL do not always coincide with project schedules or student competencies, leading employers to hesitate at creating a program.

However, there is data that reflects the success of the programs. The DOL has reported that 94 percent of people who go through an apprenticeship program are still with that company six months after completion. This bodes well for employer apprenticeship programs as well as the employees.

Solutions: Employer Assistance

In Illinois, SkillsUSA Illinois works as an intermediary bridging the workforce apprenticeship gap between potential apprentices and employers. They provide support for small to medium-sized businesses interested in creating an apprenticeship program.

Eric Hill, Executive Director, and his staff have been able to address the concerns businesses have. In April of 2022, SkillsUSA Illinois launched their assistance program to help businesses navigate the DOL’s Registered Apprenticeship Program.

“What we discovered was not only do employers need assistance, but there’s also a lot more funding available to them on the backend than businesses realize,” said Hill.

Other states offer tax credits for apprenticeships. In South Carolina $1,000 per year per apprentice is available, and in Connecticut up to $7,500.

NCCER – Apprenticeship

Setting up a Registered Apprenticeship Program can be challenging. The National Center for Construction Education and Research (NCCER) is here to make the process smoother with resources, guidance and a ready-made curriculum designed to meet DOL standards. To learn more about how NCCER can help, visit our Apprenticeship Assistance page.