Interest in apprenticeship is growing across the United States—from policymakers and employers to education leaders and workforce practitioners. Yet the country’s apprenticeship system remains far smaller than those in other advanced economies.
Workforce Matters members and guests explored these challenges and opportunities on our March 5 webinar, “Apprenticeship: What Funders Need to Know Right Now,” featuring:
- John Colborn, Apprenticeships for America
- Brittany Corde, Ascendium Education Group
- Laura Love, Strada Education Foundation
- Laura (Lau) Mutis, JPMorgan Chase
Below are the key takeaways.
Apprenticeship Is a Proven Workforce Strategy
John Colborn described apprenticeship as “the gold standard in workforce development.” Apprenticeships combine paid employment with structured training and classroom learning. Participants earn wages while gaining skills, often with built-in wage progression.
Once completed, retention rates are high: more than 90% of apprentices remain with their employer. Employers see strong returns on investment, and apprenticeships directly connect learning to good jobs—a powerful strategy for funders focused on economic mobility.
Apprenticeship is also more flexible than many people realize. Apprenticeship can support multiple pathways, including:
- Youth apprenticeships connected to high school programs
- Degree apprenticeships that combine college with paid work
- Upskilling and reskilling programs for existing employees
- Pre-apprenticeships that prepare participants for entry into training
As Laura Mutis stated, “Apprenticeship is molded in so many ways—it can support early career pathways, college degrees, or reskilling the existing workforce.”
Key Challenges Facing Apprenticeship
1. Scaling and Completion
Apprenticeship programs are challenging to expand. Coordinating employers, education providers, and government systems can slow growth, and low completion rates highlight the need for stronger program design and participant supports.
2. A Fragmented, Complex System
About a third of U.S. states run apprenticeship systems through the federal Department of Labor; two-thirds administer their own. While national standards exist, state variation creates inconsistent policies and outcomes.
3. Limited Scale Compared to Other Countries
Despite doubling to roughly 600,000 apprentices over the last decade, U.S. apprentices represent just 0.3% of the labor force. In Germany or Switzerland, that figure ranges from 2% to more than 3%, showing how underdeveloped the U.S. system remains.
4. Insufficient Public Investment
Federal spending on apprenticeships is roughly $300 million annually—far below what other countries invest per capita. Colborn described the U.S. system as “effectively a volunteer program” relative to international peers.
5. Weak Education-to-Apprenticeship Pathways
Few high school graduates transition directly into an apprenticeship, compared to more than half in Germany. Strengthening these pathways and highlighting apprenticeship as an opportunity could dramatically expand participation.
Federal Policies and Funding Momentum
Executive Orders
Recent orders have elevated apprenticeship as a key workforce strategy, set a national goal of 1 million apprentices, and highlighted apprenticeship in emerging fields like AI. Achieving the goal will require growth rates far above current trends.
Pay-for-Performance Grants
The Department of Labor recently announced $145 million in funding for outcome-based apprenticeship expansion. This model incentivizes results rather than upfront spending.
Integration With Other Federal Grants
Apprenticeship is now included in initiatives like YouthBuild, reentry workforce grants, and programs from the National Science Foundation—signaling federal prioritization.
Workforce Pell
Workforce Pell, or the expansion of Pell Grants to short-term workforce programs, could create a significant new funding stream for apprenticeships, though implementation challenges remain.
Opportunities for Philanthropy
The webinar emphasized several areas where funders can catalyze apprenticeship growth. As Laura Love shared, “It can be hard to know where philanthropy fits when there’s such a large structural funding gap—but building the system infrastructure is where funders can make a real difference.”
1. Build Employer Infrastructure
Many employers want to engage but lack expertise. Funders can support intermediaries that help design programs, manage compliance, and connect with training partners.
2. Strengthen Education-to-Apprenticeship Pathways
Clearer pathways from K–12 and community colleges into apprenticeships can increase participation, especially youth and degree apprenticeships.
3. Expand Apprenticeship in High-Growth Industries
Fields such as healthcare, education, business services, manufacturing, and technology are ripe for apprenticeship expansion.
4. Support State-Level Innovation
States largely drive apprenticeship growth. Funders can advance policy research, technical assistance, and strategies that strengthen state systems and encourage employer participation.
5. Leverage Federal Momentum
New federal initiatives—including pay-for-performance funding and Workforce Pell—offer opportunities for funders to support program development, partnerships, and capacity-building.
6. Change the Narrative
Brittany Corde highlighted the importance of helping learners, families, employers, and educators understand the benefits of registered apprenticeships: “Helping folks really understand…what a registered apprenticeship is and the career pathways it opens can change perceptions and drive participation.”
Looking Ahead
Apprenticeship in the U.S. is growing and receiving increased federal attention, but the system faces structural and funding gaps. Strategic philanthropic investments in infrastructure, partnerships, and innovative models can help expand access to quality apprenticeships and ensure more workers have pathways to good jobs.
Interested in learning more and strategizing with peers? Join Workforce Matters’ Apprenticeship Affinity Group for three peer learning conversations this year.
Resources mentioned on the call:
MiraCosta Regional Apprenticeships Research Findings and Recommendations_Final.pdf
Apprenticeships for America Summit
ROI Calculator: https://cccareers.org/roi-calculator/
