Four things Alabama, Colorado are doing to advance apprenticeships

Josh Laney is the Director of the Alabama Office of Apprenticeship. Denise Miller is the Director of Apprenticeship Colorado.

As we celebrate the 10th anniversary of National Apprenticeship Week, a new administration and Congress are contemplating the next chapter in federal policy around apprenticeships. 

The past decade has borne witness to the undeniable popularity of the apprenticeship model. The number of active registered apprentices across the country has surged by more than 60% since 2011 and now stands at nearly 670,000. Across the last decade, cohorts of new apprentices are increasing at an average annual rate of 8%.

While new federal investments have increased, much of the most impactful action around apprenticeships has occurred at the state level. As documented in a new report from the nonprofit Apprenticeships for America, the rate of new state legislation that references apprenticeships more than doubled over the past decade. This year alone, 16 governors mentioned apprenticeships in their state-of-the-state addresses.But maintaining this momentum around apprenticeship will mean that state policymakers must step up their support. As leaders of state apprenticeship agencies, we have taken steps to support the growth of apprenticeships in Alabama and Colorado, respectively. Based on our experience, here are four things policymakers can do to advance apprenticeships in their own states:

Set goals and measure progress toward them. 

Setting goals costs zero dollars, and having a clear and measurable target can galvanize stakeholders and focus their efforts. Among states that have set specific goals, our colleagues in Maine, Maryland and Kansas have seen strong apprenticeship growth within the past decade. 

In Alabama, Gov. Kay Ivey’s Success Plus plan is working to add 500,000 newly skilled workers to the state’s workforce. To help more Alabamians who want to work but lack the skills aligned with available in-demand jobs, the Alabama Office of Apprenticeship led statewide efforts to define and place 13 different forms of work-based learning on a continuum of awareness, exploration, and preparation. By creating a common language and building a foundation for growth, this exercise helped ensure that all stakeholders were moving in the same direction. Other effective metrics to track the growth of apprentices include measuring the share of apprentices as part of the active workforce (a figure used at the national level but rarely by states), and monitoring employer adoption. In Alabama, which uses the latter metric, the state has seen growth from around 300 employers with apprenticeship programs when the office opened five years ago to more than 500 today.

Increase support to keep up with increased capacity needs.

As apprenticeships continue to scale, they will require more robust infrastructure and resources. Intermediary organizations, which support employers with the design and management of apprenticeships, can play a critical role in providing that support and helping to expand capacity — both by working closely with employers to understand their needs for apprenticeship programs, and by serving as a bridge to government regulation.

Public-private partnerships with trusted intermediaries can help states meet growth targets and reach employers in industries just beginning to explore the model. Earlier this year, Colorado became the first state to recognize apprenticeship intermediaries as an innovative strategy to scale apprenticeships across all industries in the state. Based on an analysis of whether the intermediaries’ work would have both a qualitative and quantitative impact on Colorado’s apprenticeship infrastructure, the state recognized 35 organizations that are actively bridging the gap between career seekers and employers, creating a more robust ecosystem that builds on the state’s existing capacity and sets the stage for continued expansion.

Walk the talk.

State and local government agencies are just as talent-starved as many private-sector industries. By establishing their own apprenticeship programs, government agencies can set an example and create models that other employers can adapt. In Colorado, Gov. Jared Polis signed an executive order in 2023 to increase apprentices in state agencies by 50% and create new work-based learning programs in departments with high vacancy rates. That said, making good on this goal is easier said than done, and changing long-entrenched state government personnel processes requires strong leadership from the most senior leaders.

States can also use the power of their own spending to grow apprenticeships, like the fourteen states (and the District of Columbia) that aim to expand the model through state procurement rules. Oregon, for instance, requires state agency contracts that exceed $3 million to specify that apprentices must complete at least 12% of all labor hours. When apprenticeship is tied to bid eligibility, preferential bidding or contract language, employers wishing to do government business will notice.

Embrace the pay-for-apprenticeship approach.

Apprenticeships are commonly launched or expanded with competitive grants. While these grants can help organizations with start-up costs, they tend to be short-term and unpredictable sources of funding, making scaling apprenticeships challenging. Legislatures in Alabama, Colorado, and many other states are increasingly awarding incentives and tax credits to provide sustainable means to scale this model. Unlike other training models that require participants with new skills to find jobs, apprenticeships provide a less risky dollar-for-dollar return on state investment because apprentices are employed from day one. 

A promising funding model is pay-for-apprenticeship funding, which provides regular and predictable payments to apprenticeship sponsors and intermediaries for each apprentice they hire and retain while meeting certain standards. Apprenticeship leaders in California credit Apprenticeship Innovation Funding, which pays program sponsors $3,500 annually per registered apprentice, with creating an infrastructure that helps emerging programs thrive.

Apprenticeship represents untapped potential for American workers and American employers. Several states, including ours, are taking bold steps to close talent shortages and create new pathways to high-paying, in-demand careers and economic mobility. To increase the momentum around apprenticeship, leaders and policymakers in other states and on both sides of the political aisle can embrace a model that works for their states, their residents, and businesses.