Expanding Apprenticeship Training in Maryland: Rationale and Suggestions

Robert I. LermanAmerican University and Urban Institute

Today’s Agenda

Describe apprenticeship in context of US system of skill preparation

Convincing educators, employers, parents, and policymakers about why we should expand apprenticeship

Ideas for achieving an expansion

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Summary of the Argument

US lacks a good system for seamlessly integrating occupational demand with training for building skills

Schools operate largely independently of labor market considerations, sometimes purposely

Other countries have good systems for transitions from school to work, but the US has a single “ideal”—finish high school, go to college, and find a career

Youth work while in school, not connected to careers

Expanding apprenticeship can help meet needs of workers and employers

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One Trillion Dollars

$1,093,000,000,000

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Education, Skills, Jobs and Careers

Preparing people for jobs, careers, life is a complex, multifaceted process—how can we best maximize:

1. Value of education, training for cultivated person, voter, parent, and lifelong learner

2. Value of education and training for jobs and careers that yield a good living, satisfaction

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Appropriate Balance Between Uniformity and Heterogeneity

Modern life requires some common capabilities

But jobs, careers, interests differ in skills demanded

Raises centuries-old tensions between the roles of general education versus career-oriented education

Education world is homogeneous while the world of work is highly heterogeneous

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Heterogeneity in Learning Styles, Timing, and Motivation

Student motivation is a central component

Motivation and learning styles vary—from abstract, classroom-based approaches to hands-on applications of principles

Variations are particularly important with age—the appropriate timing varies as well

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Where is the US system in terms of preparation for jobs and careers?

An academic-based system aimed at all students

Heterogeneity expected to take place only in late college, graduate school, or on jobs

Emphasis is on college-for-all policies Effort to maximize course requirements

for high school graduation Modest numbers of alternatives, such as

career academies & tech-prep—2nd chance programs

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Strengths and Weaknesses

Strengths Develops world’s top universities Offers the chance to delay career choice with

little penalty Big weaknesses

Leaves many as dropouts in or out of classes Disadvantages many with practical learning

styles Encourages long-term adolescence and delays

mature preparation for careers Many students have little motivation to learn Supply-side initiative only—no incentive to

restructure jobs in ways closely linked to training, careers

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Polarized System Not Well-Suited to Expanding the Middle Class

Emphasis is on 4 year colleges; impose sameness on young people—sameness is not equality

Community colleges are attempting to come to the rescue but their performance is highly uneven—often weaker than for-profit colleges

Minimizes work-based learning, motivation

Fails to prepare people with non-academic and occupational skills that employers demand

Measurement Gaps Are Part

of the Problem Skills are years of schooling, test scores

on academic tests

Critical skills employers demand1) occupational skills, 2) non-academic skills, communication skills, problem-solving, teamwork

When we do not measure key skills, we are unlikely to focus on improving them

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Washington employers, DifficultyHiring Qualified Workers, by Skill

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The Community College Boom Community colleges have a place in

expanding skills—evidence shows positive returns, to years and degrees

But CC education is uneven and often falls short, partly because of weak links with employers, poor qualifications of entrants, minimal guidance, high costs, and now capacity constraints, crowded classrooms

Not comfortable for people who learn best by doing, who can only learn key workplace skills in the workplace

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Emerging Initiatives

Some new approaches to create a more seamless web with work-based learning, employer involvement, occupational and generic skills

For Career Academies, results from experiments show gains for at-risk youth

Exemplary high school Career/Technical Education and community college programs

Sectoral strategies in job training

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Why Reinvent Apprenticeship? Key features of successful programs are

already embedded in apprenticeship Intensive combination of work-based (3-

4 years) and classroom training (2+ years)

Sectoral strategies, employer involvement

Many additional benefits--high standards for recognized credentials—meets state licensing and certification standards

Key concept

“Learning through practice alongside and under the guidance of an expert practitioner is the most effective way, to transmit professional experience and skills from one generation to the next”

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Apprenticeship as Youth Development

READ

The Means to Grow Up

by Robert Halpern

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Added points to stress

Conveys occupational pride, identity, apprentices become part of “communities of practice”

Emphasizes using skills; academic skills erode when they go unused

Works on demand and supply sides of the job market; schools work only on the supply side

Firms willing to finance training--studies indicate many breakeven during the training period

Mentoring critical for at-risk young people

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International Experience

Apprenticeship is a mainstream route to career success in European & other advanced economies

Provides training for 50-70 percent of young people in Switzerland, Austria, and Germany.

Skills of manufacturing workers in these countries part of their comparative advantage in that sector

Apprenticeships are expanding rapidly in Ireland, Australia, United Kingdom, covering many occupations, including nursing, information technology, finance, and advanced manufacturing

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High Income Countries Further Ahead in Apprenticeships than BAs

Switzerland has an income per capita that is over one-third higher than the US

It has some great universitiesBut in Switzerland, over 70 percent

of young people go through apprenticeships

Many of Germany’s best students—those who can attend college for free—go to apprenticeships

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What makes Swiss successful? General skills are learned in a problem-

oriented setting, offers good motivation for at-risk youth

Skills learned by apprentices assist in the rapid adoption of new technologies

National recognition of standards Provides attractive alternatives for

talented youth who are tired of school Most employers providing apprenticeships

recoup benefits that exceed the costs (value of productive help by apprentice is higher than costs)

UK Experience is Relevant

Started fresh after giving up many programs

Relatively free labor marketConcerns about wage inequality Job skills, including workplace skills,

of non-college youth a big problemTendency toward college as the only

route to successful careers24

UK Apprenticeships Apprentices are employed people who

receive official, structured training Related training delivered 1 day per week

at a vocational provider (college, commercial company)

They normally work 4 days per week or more

But the program is flexible – the employer decides how it is delivered and the contents of the course

Apprenticeships are for young and current workers

Government subsidizes training costs

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UK Program is expanding rapidly

From very low numbers in 2000, the program is now reaching 281,000 entrants

Completion rates are over 70 percent

Expect 400,000 starts in 2014, thereby reaching the number entering UK universities

Demonstrates feasibility even in countries that have not used apprenticeship lately

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Most popular apprenticeships

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Framework and starts 2008/09 2009/10

Customer Service 22,100 29,400

Business Administration 20,500 26,500

Hospitality and Catering 16,100 20,900

Children's Care Learning and Development 16,900 19,600

Health and Social Care 12,000 17,400

Retail 10,700 16,800

Hairdressing 15,900 15,800

Engineering 14,700 14,500

Construction 15,700 13,400

Active Leisure and Learning 7,800 10,800

Other new innovations

Computer field is highly successful at using apprenticeships; graduates of computer apprenticeships in more demand than BAs

Entrepreneurship apprenticeships have developed successfully in Finland

Finland illustrates the importance of job-based training; high academic skills but very high youth unemployment

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Evidence of returns for Canadian, Swiss and German Employers

Studies show employers reap returns to apprenticeship training often even during the time of training

Apprentices produce less than their earnings and the overall costs during the first year but produce more than they earn in later years

No comparable studies in the US

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Help Firms Evaluate Benefits

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So why not apprenticeship?

Budget tiny despite massive increase in spending & initiatives for community colleges

So what about the empirical evidence?

Impacts on workers and employers

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What about US experience? Impacts on workers?

Many assume that occupational training is not effective since people change jobs often in the U.S.

▪ (This does not stop tens of thousands of people going to law school and medical school.)

Of course, what you learn in occupational training can be applied to other jobs and even other fields

Many who gain occupational training become more confident about subsequent learning

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Best Evidence from Washington

Results are based on a methodology that matches workers on their earnings before they enter one or another type of training

It includes workers who enter public job service centers (One-Stops)

The study tracked their earnings after training using administrative records drawn from the unemployment insurance system 33

Who are the sponsors of registered apprenticeship programs?

By industry, 36 percent are in construction, 10 percent in retail trade, 11 percent in energy, 5 percent in automotive, and a mix of security, IT, communication

In 2007, 1 in 4 sponsors operated joint programs, (labor-management) but they accounted for over 60% of all apprentices; 40% in union construction

Over half the sponsors (53%) had only 1-4 apprentices

Sixty percent of programs served only one employer, while 40 percent served multiple employers.

48% of programs were over 10 years old36

Satisfaction and Main Benefits 97% of sponsors (97%) would

recommend the program—86% would do so “strongly”

Main benefits of program Helps meet their demand for skilled workers

(80%)

Reliably shows which workers have relevant skills (72%)

Raises productivity, strengthens worker morale and pride, and improves worker safety (about 70%)

Improvements in worker recruitment and retention and in meeting licensing requirements (56%)

Saving on pay is a relatively minor benefit

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Arguments Against Apprenticeship Apprenticeship is stigmatizing

Usually the opposite is true; completers have great pride especially if skill standards and wages are high

Apprenticeship reduces mobility—no evidence of this—again evidence for just the opposite; no indication that skills are too specific—many of the generic skills learned are widely applicable

Apprenticeship requires employers—so does every other job outcome; employers have no incentive to train because of the fear of poaching

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Reduced Youth Unemployment

Countries that emphasize “dual systems” have lower unemployment rates

Finland, which has top academic scores, have youth unemployment rates over 20%

Germany, Austria, and Switzerland have very low youth unemployment rates, only slightly above adult unemployment rates

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Poaching, Other Issues in U.S.

Firms paying for training might lose if competitors hired away qualified trainees

Yet, only 25 percent of sponsors see poaching as a significant problem; it is a problem for 50%

Only 11% of sponsors are concerned about the program’s duration; only 8% see the use of experienced worker time as a significant problem

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Where do we go from here?

Pure academic approach is failing many kids and delaying success for many others--must first drop the idea that formal academic training need be the only route to quality careers.

Learning and competency require engagement

Student motivation is central component, it is time to recognize motivation and learning styles vary—from abstract, classroom-based approaches to hands-on, contextualized applications

Variations important by sex—men are falling far behind in completing college

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States, WIA Can Lead the Way

Bring together community colleges, firms, and workers as part of broad effort-use new CC grants

Meets various criteria—jointly designed with firms, basic skills with occupational training, transparent career pathways

Provide allocation to employers for education costs of program—perhaps fund 1 of each 4 apprentices if recruitment is at One-Stop

Insure employers can access occupation skill profiles

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South Carolina’s Story

Stimulated by the state chamber, the state began providing $1 million per year to expand apprenticeship—base is a technical college

Also, a $1,000 tax credit per apprentice per year

Effort so far has led to one new program per week, 50% increase in apprentices

Shows what can be done with close marketing

Cost per added apprentice is $3,600; present value of earnings gains at least $100,000

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Concrete steps at state/federal level

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Make apprenticeship the center of a national skills strategy for jobs in key industries and occupations

Expand funding for the federal and state apprenticeship office especially for marketing but also to monitor, and conduct research on workers, firms, standards

Establish a tax credit of $5,000 for each apprentice position beyond 80% of current levels by firms

Provide more funding for the related instruction component of apprenticeship training

Provide incentives for apprenticeship linkages with community colleges and career colleges

Make Occupational Standards Transparent, Accessible

OA should cull all the occupational standards already used in the US and make them easily accessible to employers and the public

OA should collaborate with other countries to compare occupational certifications

Will still require marketing to employers but can ease the process

Develop scenarios to show governors and legislatures how apprenticeship can save postsecondary dollars and improve outcomes

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Government as Employer

Many skills used in the government are also used in the private sector

One in six jobs are government jobsSome—police and fire—often use

apprenticeship but much more could be accomplished if the federal, state, and local governments built new programs

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