College is not for everyone. But try telling that to most middle-class parents, especially those who did not have the opportunity to attend college themselves.
Since the end of World War II, the college degree has become the Holy Grail of upward socioeconomic mobility. Yet a good number of today’s Gen Z students prefer to pursue vocational paths other than those that require a bachelor’s degree. Their parents are likely to admonish them that without at least bachelor’s degree, the best job you’ll find is supervisor at Taco Bell.
Meanwhile, to successfully compete in the 21st century, tourism-dependent cities like Miami, Las Vegas and New Orleans must diversify beyond service sector jobs in leisure and hospitality. These jobs are low-skilled, poorly paid and plagued with high turnover. To maintain and attract skilled labor, these communities will need to build a skilled workforce in higher value-added services such as IT, finance and health care.
One very promising way to do so is for businesses to offer apprenticeships, a proven vehicle for upskilling the workforce. Apprenticeships are training programs that combine hands-on experience with classroom instruction, acquiring specific skills while earning a wage. The skill acquisition embodied in these programs is directly tailored to the specific needs of the employer.
Apprenticeships have experienced a resurgence over the last decade as a proven pathway to skilled employment. The number of apprenticeships registered with the Department of Labor exceeds 600,000, an increase of more than a two-thirds from a decade ago. Meanwhile, college enrollment continues to decline. As paid on-the-job training combined with classroom instruction meets the needs of many Gen Zers, one can expect to see such training opportunities for the foreseeable future.
Apprenticeships go far in alleviating workforce challenges. They close the skills gap, especially in manufacturing, where hands-on training is critical in key areas such as machining and robotics. Apprenticeships help reduce turnover and retain talent. According to workforce development expert Amy Murphy, “apprenticeships help alleviate this issue by fostering loyalty and commitment” — a win-win for both employee and employer.
Apprenticeships also enhance productivity and drive innovation, suggesting improvements and solutions to propel a company forward. At a national level, apprenticeships have a significant effect on addressing the aging workforce, where over half of all workers are between 45 and 65 — workers whose organizational knowledge is vital to maintain a competitive economy.
Additionally, apprentices are guaranteed to increase their earnings. According to Jobs for the Future, people who complete Registered Apprenticeships — programs that have been validated by the Department of Labor or a state organization — can earn $300,000 more over their lifetime than their peers. Additionally, apprentices typically have lower unemployment rates due to their specific skill acquisition.
Enhanced productivity for employers is another economic effect, as apprentices contribute to a skilled workforce and lower recruitment costs. Other impacts are economic growth in the local economy and industry competitiveness on a national level. Studies have shown that employers can see a return of nearly $1.50 for every dollar invested in apprenticeship programs due to higher productivity and lower turnover rates.
Apprenticeship programs in the U.S. offered by state governments and organized labor have been particularly successful. These include South Carolina’s Apprenticeship Carolina and the Wisconsin Apprenticeship Program. The North American Building Trades Union has trained millions of workers over the years and has been acclaimed for its high completion rates and successful job placements.
Unfortunately, apprenticeships mostly remain outside the mainstream in America. The U.S. workforce could host over 830,000 new apprenticeship opportunities per year, leading to $28.5 billion in wage increases. And while both the Trump and Biden administrations have enacted measures to support apprenticeships, the U.S. still comes up short.
Take reshoring, a major bipartisan goal. Reshoring — returning manufacturing to America from overseas — won’t succeed without a skilled workforce pipeline. Yet the manufacturing sector will have nearly 2 million unfilled jobs by 2033, according to Deloitte and the Manufacturing Institute.
Apprenticeships are not a panacea for our workforce challenges, but they can provide a promising opportunity for social mobility and economic advancement while bolstering national competitiveness. The U.S. would be wise to support and expand such initiatives throughout the nation.
Jerry Haar is a professor of international business at Florida International University. He is also a fellow at the Woodrow Wilson International Center for Scholars and the Council on Competitiveness.