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The US has invested heavily in apprenticeships across a number of industries and as a primary method of growing the construction workforce. But the number of workers producing these programs is far from what the industry needs, according to a new report.
By 2024, the federal government invested $244 million in expanding learning opportunities in growth industries such as construction, making it the the largest federal investment in them to dateaccording to the report published by Rand Corp. last month Despite the historic level of funding, Rand found that RAPs won’t help provide as much relief in the tight labor market as construction needs.
“To meet this demand for construction workers, you need to attract about half of the high school graduates in the US, and you have to do it ASAP, which is an unrealistic hiring plan,” said Marwa AlFakhri, associate policy researcher at Rand. and one of the authors of the report.
About three in five enrollees complete their apprenticeship programs, the Santa Monica, Calif.-based nonprofit research group found. This is on par with other forms of multi-year postsecondary education, but it still means that many workers do not complete their education. The confusing part is that apprentices make money more easily than traditional students while getting certified.
AlFakhri said there is much that is unclear about why more young people are not getting into construction and whether or not they are staying in the industry after completing an apprenticeship. The data only indicates whether or not students complete their training, not whether they stay in the industry. This lack of clarity is part of the problem, according to the report.
Supply and demand
Metrics from the Bureau of Labor Statistics and Associated Builders and Contractors indicate construction needs around half a million workerssaid AlFakhri, which means the demand for workers is clear.
“The supply of workers is a little more complicated to think about because we’re thinking about people who come from different backgrounds, right?” she said
Those already working in construction can move around and fill positions, he said, but a relatively low unemployment rate in the industry indicates that most construction workers already have jobs.
This leaves the option for new market entrants.
The Rand report estimated that by 2024, immigration could have produced 85,000 new entrants to the workforce, community and technical colleges about 28,000 and RAPs another 33,500. This is far below the needs of the sector.
The biggest bucket to focus on for potential growth is high school graduates, who can often find the fastest route to a career in the learn-as-you-learn model.
The good news is that the number of RAPs has grown in the past decade, according to the report, increasing by nearly 60% from 2014 to 2023. However, the programs are small. By 2023, about 33% of programs had only one active construction apprentice.
Update proposal
About half of all apprentices in the US are registered with the US Department of Labor, per Rand. RAPs are sponsored independently by employers or jointly by employers and labor organizations such as unions or schools. Sponsors can register their programs with the Department of Labor, which then monitors to ensure quality, protect the interests of learners, and verify that programs meet guidelines.
On November 17, the The Labor Department withdrew a controversial rule designed to update the existing RAP program. The proposed rule sought to strengthen labor standards and protections within RAPs and provide improvements for historically underrepresented groups, such as women and people of color.
Republican opponents pushed back on the rule’s time-based model, which would have required enrollees to complete hours both on the job and in the classroom, eliminating the option for learners to complete their programs only with demonstrated proficiency.
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To improve recruitment nationally, AlFakhri said the entire industry should focus more on outreach and education, while investigating why apprentices leave their programs, AlFakhri said.
“This is a system problem that needs to be addressed by all parties involved in the system,” AlFakhri said.
John Mielke, senior director of learning for the Associated Builders and Contractors, said the paper indicates the industry’s need for more pathways into the trades.
“Rand’s report on construction apprenticeships is further validation of ABC’s long-standing position that the construction industry needs a comprehensive approach to workforce development to build the home, manufacturing and the quality infrastructure this country needs for the next decade,” Mielke told Construction Dive. “While government-registered apprenticeship programs are a critical strategy, they alone will not be sufficient to meet the industry’s workforce needs.”
Mielke noted that the CHIPS Act and other funding measures increase the demand for registered apprenticeships, but do not necessarily expand the development pipeline. He suggested recognizing other avenues, such as just-in-time task training or other craft development programs.
A major takeaway from the report, AlFakhri said, is that more information is needed.
“I think the big takeaway, and again, this is not for one contractor to think about, but for the whole system to support, is that we need a lot more work to understand why apprenticeship programs work and they don’t work,” AlFakhri said.
