College isn't for everyone, but try telling that to most middle-class parents, especially those who didn't have the opportunity to attend college.
Since the end of World War II, a college degree has been the holy grail of socioeconomic advancement. But many of today's Gen Z students want to pursue careers outside of those that require a bachelor's degree. Their parents are more likely to advise them that without at least a bachelor's degree, the best job they could get is as a supervisor at Taco Bell.
Meanwhile, to remain competitive in the 21st century, tourism-dependent cities like Miami, Las Vegas, and New Orleans must diversify beyond service sector jobs like leisure and hospitality, which suffer from low-skill, low-wage, and high turnover. To retain and attract skilled workers, these communities must build skilled workforces in higher-value services like IT, finance, and healthcare.
One very promising way is for companies to upskill their employees by offering apprenticeships, a proven way to do so. Apprenticeships are training programs that combine hands-on experience with classroom instruction to learn specific skills while earning a wage. The skills learned in these programs are directly tailored to the specific needs of employers.
Apprenticeships have experienced a resurgence over the past decade as a reliable path to skilled employment. There are more than 600,000 apprenticeships registered with the Department of Labor, more than two-thirds more than a decade ago. Meanwhile, college enrollment rates continue to decline. A combination of paid on-the-job training and classroom instruction meets the needs of many Gen Zers, so we can expect to see more of this type of training in the near future.
Apprenticeships go a long way in mitigating workforce challenges. They fill the skills gap, especially in manufacturing where hands-on training is essential in key areas such as machining and robotics. Apprenticeships help reduce turnover and retain top talent. According to “Apprenticeships help mitigate this issue by fostering loyalty and commitment,” says workforce development expert Amy Murphy, which she says is a win-win for both employees and employers.
Apprenticeships increase productivity, foster innovation, and suggest improvements and solutions that move companies forward. At a national level, apprenticeships can be a huge help in addressing the workforce challenges of an aging society. More than half of all workers are between the ages of 45 and 65, and their institutional knowledge is essential to maintaining a competitive economy.
Additionally, apprentices’ incomes are sure to increase. According to Jobs for the Future:Those who complete a registered apprenticeship (a program certified by the Department of Labor or a state agency) can earn up to $300,000 more over their lifetime than their peers. Plus, because apprenticeships teach specific skills, they generally have lower unemployment rates.
Increased productivity is another economic benefit for employers, as apprenticeships contribute to a skilled workforce and lower recruitment costs. Other impacts include economic growth for local economies and improved industrial competitiveness at the national level. Studies have shown that for every dollar invested in apprenticeship programs, employers can see a return of nearly $1.50 through increased productivity and reduced turnover.
In the United States, state and union-sponsored apprenticeship programs have been particularly successful, including Apprenticeship Carolinas in South Carolina and the Wisconsin Apprenticeship Program. North American construction trades unions have trained millions of workers over the years and are recognized for their high completion and job success rates.
Unfortunately, apprenticeships remain far from mainstream in America. The U.S. workforce could benefit from more than 830,000 new apprenticeship opportunities annually, leading to $28.5 billion in increased wages. While both the Trump and Biden administrations have enacted measures to support apprenticeships, the U.S. is still falling short.
Take reshoring, a key bipartisan goal: Reshoring, the move to bring manufacturing from overseas back to the U.S., can't be successful without a pipeline of skilled labor. Yet according to Deloitte and the Manufacturing Association, the manufacturing sector will have roughly 2 million unfilled jobs by 2033.
While apprenticeships are not a panacea for our workforce problems, they can offer promising opportunities for social mobility and economic advancement while strengthening our nation’s competitiveness, and the United States would be wise to support and expand such efforts nationwide.
Jerry Haar is Professor of International Business at Florida International University and a Fellow at the Woodrow Wilson International Center for Scholars and the Council on Competitiveness.
