What is registered apprenticeship?
Registered apprenticeship is a proven
training strategy with related classroom instruction to prepare highly
skilled workers for American industry. Apprenticeship, by virtue of
its success in preparing skilled workers, helps America compete more effectively
in the global economy, and contributes to America's economic development,
sustained economic growth, and national security.
Who does registered apprenticeship serve?
In the United States today, some
40,000 program sponsors offer registered apprenticeship training to approximately
325,000 apprentices. These training programs serve a diverse population
including minorities, women, youth and dislocated workers. Currently,
at least two-thirds of all apprenticeship training positions are in the
construction and manufacturing industries. Experts agree that apprenticeship
has the potential to benefit numerous other industries as well (e.g.,
service, retail, public sector). Thus, the possibilities for expanding
the apprenticeship model - thereby meeting the needs of many more American
companies and citizens in search of high quality training opportunities
- are virtually unlimited.
Who operates and pays for registered apprenticeship
training?
Registered apprenticeship
programs are operated by private industry - employer and labor/management
sponsors.
Program sponsors pay virtually all the training costs as well as progressively
increasing wages to their apprentices. Registered apprenticeship programs
range from one to six or more years in length. For the apprentice, this
translates into an "industry scholarship" worth $40,000 - $150,000. Moreover,
the contact of the training program is determined based on industry needs
thereby producing workers with skills that are in high demand.
What role does government play in apprenticeship?
The National Apprenticeship
Act of 1937 authorizes the federal government, in cooperation with the
states,
to oversee the nation's apprenticeship system. The U.S. Department of
Labor's Bureau of Apprenticeship and Training, in conjunction with state
apprenticeship agencies, is responsible for registering apprenticeship
programs that meet federal and state standards, issuing Certificates
of Completion to apprentices, encouraging the development of new programs
through marketing and technical assistance, protecting the safety of
and welfare of apprentices, and assuring that all programs provide high
quality training to their apprentices.
How much does the government spend on apprenticeship?
The federal government currently
spends approximately $16 million for administration of the apprenticeship
system, while the states contribute approximately another $20 million.
Thus, the total public investment amounts to approximately $36 million
- a modest $110 per apprentice.
What is the return on investment for
this public expenditure?
The government's return on
investment in registered apprenticeship clearly outperforms other types of
government-sponsored
job training programs (see the "economics" section on this site). Apprenticeship
is a proven training strategy that improves the skills of the American
workforce and enhances the efficiency and productivity of American industry.
Moreover, because apprentices pay income taxes on their wages, it is
estimated that every $1 the Federal government invests yields more than
$50 in revenue. Thus, if all 325,000 apprentices earn an average annual
income of $15,000, this would generate nearly $1 billion in federal revenues
alone.
Conclusion: Government investment
in the United States Registered apprenticeship system is wise. Not
only does the system produce the kinds of workers that are badly needed
in
an increasingly competitive global economy, it also pays for itself many
times
over. The current investment should be both protected and increased
to reap greater rewards.
