Students in high school and college who can access apprenticeships and gain on-the-job skills will have an advantage as they navigate future career pathways. This was the case for Christian Benjamin. Through a program with JPMorgan Chase, he acquired training and knowledge that helped him earn course credit, and following completion of the apprenticeship, he was hired as a full-time analyst. His experience was instrumental in setting him up for career success but there are not enough of these programs to meet demand, leaving critical skills-based jobs on the table. By 2030, more than 85 million jobs could go unfilled because there aren’t enough skilled workers to take them, costing the global economy nearly $8.5 trillion in unrealized annual revenues.
Left unaddressed, this mismatch stifles economic growth for individuals, businesses and communities. Tackling this challenge requires reforming and modernizing the workforce ecosystem by creating more intentional collaboration between the private, public and nonprofit sectors and by updating and leveraging federal investments aimed at boosting U.S. competitiveness, such as the National Apprenticeship Act, the Workforce Innovation and Opportunity Act (WIOA), and the Higher Education Act (HEA).
“Earn and learn” apprenticeships like Christian’s, which combine paid, on-the-job training and mentorship with formal classroom instruction allows students and workers, regardless of their background, to develop necessary skillsets without removing themselves from paid opportunities. By connecting apprenticeships to credit-bearing coursework, students can be on career pathways with multiple on- and-off ramps and can help to lower college costs for individuals interested in pursuing degrees. It also creates a pipeline of skilled workers that employers can recruit to fulfill in-demand jobs.
This cross-sector approach is happening right here in Washington, D.C., through the Talent Ready Initiative, a program run by the Greater Washington Partnership and supported by JPMorgan Chase to help meet the growing demand for IT talent in the nation’s capital. The program brings together K-12 and higher education leaders along with local employers to design solutions that better connect young people to good jobs.
The federal government can help support the expansion of the earn-and-learn apprenticeship model to a broader set of industries. Today, most registered apprentices are in industries such as construction and manufacturing. But only about 1,000 out of the roughly 550,000 active registered apprentices nationwide are in the finance and insurance industries, leaving untapped opportunities to match skilled workers to careers in professional services. Congress can help increase and diversify industries’ adoption of this model by reauthorizing legislation that simplifies and streamlines administrative barriers, such as allowing reciprocity registrations, so that employers do not have to reregister the same programs in multiple states. Additionally, Congress can support the expansion of employer-based training, such as apprenticeships and incumbent worker training, by increasing the percentage of funds that may be used to support these programs in the reauthorization of WIOA.
These kinds of policy reforms can further incentivize an already engaged private sector. Robust partnerships between businesses, nonprofits, government entities and educational institutions are already underway across the country. The Business Roundtable, an association of more than 200 CEOs of America’s top companies, launched the Apprenticeship Accelerator Corporate Initiative to help companies across industries develop or scale existing apprenticeship programs. At JPMorgan Chase, we have provided apprenticeship opportunities for youths and adults in various areas such as technology, business operations and finance, and encourage other companies to do the same. And in New York, we have supported the City University of New York and the New York Jobs CEO Council to help address entry-level talent needs. Students pursuing an applied science associate degree in business management with a specialization in finance and banking can earn eight college credits for their on-the-job training.
An integrated system that connects education, apprenticeships and the workforce enable more people and communities to take advantage of the investments already made in American competitiveness. Employers, educators and policymakers can come together to ensure that what our students are learning inside and outside of classrooms today will help them secure in-demand employment tomorrow. Together, we can meet the moment by helping more individuals access the skills, training and resources they need to create greater economic opportunity. It’s the tried-and-true public-private partnership model: As employers develop programs and work alongside partners to create educational opportunities and necessary on-the-job training, government has an equally important catalytic role to play.
Congress has a critical opportunity to harness the power of apprenticeships and public-private partnerships to build a strong and competitive workforce for the future. Technology and innovation aren’t going to stand still, and neither should Congress when it comes to modernizing our workforce development systems through reauthorization of the National Apprenticeship Act, WIOA and HEA.
Heather Higginbottom is co-head of Global Philanthropy and head of Policy & Research for Corporate Responsibility, JPMorgan Chase.