Cross-posted from the Department of Labor's Official Blog Pge
Originally posted at WhiteHouse.gov by
JULY 14, 2014
President Barack Obama, Vice President Joe Biden, and Commerce Secretary
Penny Pritzker tour a classroom at the Community College of Allegheny County
West Hills Center in Oakdale, Pa., April 16, 2014. Students Zach Kuzma and
Stephanie Womack demonstrate equipment that teaches students how to manipulate
gears, pulleys, sprockets, etc. to adjust the speed and/or torque of a motor or system.
(Official White House Photo by David Lienemann)
To create new opportunities for more hard-working Americans, the
President and his team are committed to advancing job-driven training
initiatives that help American workers acquire the skills they need to succeed
in good jobs that are available now. Expanding quality apprenticeship is a key
strategy to make education and training programs more job-driven.
As part of that effort, today, we hosted the first-ever White House Summit on American Apprenticeship to gather the best ideas and to catalyze action to dramatically increase apprenticeship in America. More than 60 attendees presented their ideas — including leading employers, big and small, like IBM, Bank of America, Blue Cross/Blue Shield, and Oberg Industries; labor unions like the IBEW and SEIU; training providers like Ivy Tech and Lone Star Community Colleges; and local workforce leaders from states as diverse as Pennsylvania and South Carolina.
Hands-on apprenticeships, where workers earn and learn at the same time, are a proven path to good, secure middle-class jobs. In fact, 87 percent of apprentices are employed after completing their programs, with an average starting wage above $50,000. And apprentices earn a significant premium for their skills — as much as $300,000 more than their peers over a lifetime, according to some studies.
And employers benefit as well. Given a potential shortage of 1.6 million middle-skill workers by 2020, according to the McKinsey Global Institute, we need more apprenticeships that allow companies to develop a skilled workforce that can drive improvements to their bottom lines. Ninety-eight percent of employers with apprenticeship programs today would recommend apprenticeship to other employers. And the return on investment is impressive — studies from across the globe suggest that for every dollar spent on apprenticeship, employers get an average of $1.47 back in increased productivity, reduced waste, and greater front-line innovation.
Secretary Perez visits the San Francisco Electrical Industry Apprenticeship
and Training Trust, San Francisco, Calif., March 4, 2014.
But with only 375,000 apprentices in programs at the beginning of this year, we’re falling well short of our potential — especially compared to some of our global competitors. We would need more than six times as many new apprentices to be on the same per capita level as Great Britain. It would take a sixteen-fold increase for us to be in a league with Germany. And with women and African Americans comprising only 6 percent and 10 percent of our apprentices respectively, we are clearly not tapping the full extent and diversity of the nation’s talent.
We’re committed to turning that around. This fall, the President will make available $100 million in American Apprenticeship Grants to increase apprenticeship in high-growth fields; align apprenticeships with further learning and career advancement opportunities; and take successful apprenticeship models to scale. And the President continues to call on Congress to create a $2 billion training fund to help states and regions double the number of apprentices over five years.
And already, we are seeing results — there are now 10,000 more apprenticeships in America since January. Employers and unions ranging from Ford and UPS to the UAW and SEIU have pledged to add tens of thousands more. Community colleges are stepping up to link apprenticeships with college degrees. And across the country, states like South Carolina, which has already increased apprenticeships seven-fold, California, Minnesota, Michigan, and more are using creative state programs to expand their apprenticeships.
Today’s White House Summit on American Apprenticeship is a testament to the powerful opportunity before us. Together, we can do more to expand this successful career pathway — helping workers punch their ticket to the middle class and helping business grow and expand.
Tom Perez is the U.S. Secretary of Labor. Jeff Zients is the Director of the National Economic Council.
Follow Secretary Perez on Twitter as @LaborSec.
CDPS hosts a conversation on apprenticeships in manufacturing
By Jason Keller
Cross-posted from Chicago Fed Blogs
Originally posted at Chicago Fed Blogs by
According to the U.S. Department of Labor’s Employment and Training Administration (ETA), registered apprenticeship, a model for preparing new generations of skilled workers that can be traced back to the Middle Ages, remains an important method for training and placing workers. The current surge in apprenticeship has evolved from emphasizing learning in the traditional construction trades toward a focus today on new and emerging industries, such as energy, health care, and information technology for example. Today’s apprentices are registered in “earn and learn” work programs with expert mentors in their fields, allowing them to accumulate knowledge and build skills over time. The apprentice benefits by earning a fair wage as well as obtaining industry-recognized credentials and/or college credits. The 150,000 employers and other labor management organizations who already participate in the program also benefit because apprentices are not only placed on a structured learning track, but the industry-based training is specifically designed to meet employers’ current standards and practices. The various programs also have the capacity to track trends in demand, deploy resources, and match workers according to need. The success of apprenticeships’ on-the-job learning, combined with related technical instruction, leads toward a more highly skilled and highly productive workforce.
The Federal Reserve Bank of Chicago has long been interested in employment conditions as it seeks to promote the Fed’s dual mandate of maximum employment and sustainable economic growth. For example, in 2011, Community Development and Policy Studies (CDPS), a division of the Chicago Fed, launched its Industrial Cities Initiative. Known as ICI, this study took a closer look at ten former industrial/manufacturing hubs and their economic evolution over the last 50 years. The ICI paid particular attention to the labor force in these cities and the steps taken by local leaders, community colleges, and other labor organizations to meet demand for vocational and technical training by major employers.
In April 2014, the White House announced that the United States Department of Labor (DOL) will make $100 million in existing H-1B funds available in the form of American Apprenticeship Grants. Expected to launch in the fall, this will be a competitive application process to award grants to partnerships that help American workers participate in structured apprenticeship programs. The grants are intended to encourage new apprenticeships by incentivizing employers, labor organizations, and training providers to work cooperatively. Awards are also intended to promote apprenticeships as pathways for further learning and career advancement, as well as to bring-to-scale exemplary models that work.
To better inform the business and civic communities about this renewed commitment to the apprenticeship model and solicit feedback, the DOL worked with local intermediaries to hold a series of industry roundtables across the country throughout the month of June. The meetings brought together local leaders, employers, and labor organizations each with a vested interest in workforce development. The sessions were segregated by cluster: transportation and logistics (Atlanta), health care (Boston), construction (Washington DC), energy (Houston), and information technology (San Francisco). The session held at the Federal Reserve Bank of Chicago on June 19 focused entirely on manufacturing by bringing together nearly 100 policymakers and practitioners on the topic of apprenticeship.
At the Chicago roundtable, Labor Secretary Thomas E. Perez explained that the apprenticeship model is a “linchpin” and a “catalyst” toward sustainable economic vitality and job growth in this country. His remarks set the stage for an informative discussion on the needs, challenges, opportunities, and solutions for using apprenticeships in both traditional and advanced manufacturing.
Roundtable attendees were asked to comment on the following questions:
? What are your current and future talent needs?
? How can registered apprenticeships meet those needs?
? What are the challenges to using registered apprenticeships?
? What innovative solutions could be expanded and replicated?
? What support is needed to advance registered apprenticeship efforts?
Results from the June roundtables will help the DOL determine if current federal policy pertaining to apprenticeship programs is effective or if additional enhancements are needed.
The Federal Reserve Bank of Chicago appreciated the opportunity to engage with the DOL in this important discussion. For more information on CDPS, please visit the Community Development & Policy Studies home page. Additionally a recent article, Community Colleges and Industry: How Partnerships Address the Skills Gap provides more information about community college and industry partnerships in the Seventh Federal Reserve District states of Iowa, Illinois, Wisconsin, and Michigan.
 See the Federal Reserve System mission statement, available at http://www.federalreserve.gov/aboutthefed/mission.htm.
 See the Federal Reserve Bank of Chicago’s Industrial Cities Initiative, available at http://www.chicagofed.org/webpages/region/community_development/community_economic_development/ici/ici_profiles.cfm.
 H-1B funds projects that provide training and related activities to workers to assist them in gaining the skills and competencies needed to obtain or upgrade employment in high-growth industries or economic sectors.
 See Community Development and Policy Studies, available at https://www.chicagofed.org/webpages/utilities/about_us/cdps/index.cfm.
 See ProfitWise News and Views, available at http://www.chicagofed.org/digital_assets/publications/profitwise_news_and_views/2013/PNVNov2013_FINAL
Since Day One, the Obama administration has been focused on building a training and workforce system that serves job seekers and job creators alike. We’re empowering people with the tools to punch their ticket to the middle class, while giving employers a pipeline of skilled workers so they can grow and compete in the 21st-century economy.
That’s why we’re doubling down on apprenticeship, a tried and true, earn-while-you-learn model. Every business I visit that has an apprenticeship program swears by it. They talk about the incredible return on investment: greater worker productivity, higher retention rates, reduced injuries and improved morale they see from their apprentices.
And for the apprentices themselves, the benefits are undeniable. The average starting salary upon graduation is $50,000. An apprentice will earn an average of $300,000 more in wages and benefits over his or her career than peers who haven’t apprenticed. Apprenticeship offers a smooth pathway to the middle class and to a college degree for those who wish to continue their education and training. I like to call it the other college – without the debt.
President Obama has made it clear that apprenticeships are critical to the strength of our workforce and our economy. Today, at Macomb Community College in Michigan, he announced the most significant apprenticeship investment in our nation’s history - $175 million to 46 grantees across the country who will develop or expand apprenticeships in high-growth industries.
These grants are expected to create 34,000 new apprenticeship positions, and they will catalyze additional partnerships and innovation that will further expand the apprenticeship ecosystem. The grants will help us stay on the apprenticeship cutting edge in the skilled trades, an edge sharpened largely thanks to the leadership of the labor movement; and they will also facilitate growth in industries that haven’t traditionally taken advantage of apprenticeships, like health care, finance and IT.
And this isn’t just about growing apprenticeships. It’s about extending them to more people. A number of grantees, like Focus Hope in Detroit and the OpenTech Los Angeles Regional Apprenticeship Collaborative, will use funding to open the apprenticeship door more widely to traditionally underrepresented populations, including at-risk youth and communities struggling with high crime and poverty rates.
Yesterday, over 100 Apprenticeship “LEADERs” convened for a historic afternoon at the first White House Summit on Apprenticeship, where they shared best practices, strategized and affirmed their commitments to be LEADERs. The LEADERs are employers, unions, community colleges and other organizations who have committed to grow the apprenticeship movement in their communities. Among the LEADERs who attended the summit were top-level executives from major corporations like Alcoa, IBM, CVS Health and Nestle that have committed to spreading the apprenticeship gospel. During the summit, we also announced that the first annual National Apprenticeship Week, which will take place this year from Nov. 2 – 8. We are looking for every community to lift up the work they are doing on apprenticeship. Go to www.dol.gov/apprenticeship to learn more and to tell us about your local community events.
This morning, the Bureau of Labor Statistics reported that there are a record 5.8 million job openings nationwide. We need to give more people the training that will allow them to fill those positions. Apprenticeship is an essential building block of the modern skills infrastructure we’re constructing. President Obama has set a goal of doubling the number of apprenticeships in five years. With today’s historic investment and changing perceptions around apprenticeship, we have an opportunity to keep the momentum up on apprenticeship, scale our work and provide generations of Americans with a sustained path to the middle class.
On October 22, 2015, the Office of Apprenticeship held the AMERICAN
NEW GRANTEE ORIENTATION to welcome the new grantees and provide an introduction to the ETA grants team, review the Grant Management Plan, and begin discussions on the grant-related Reporting Requirements.
We’ve uploaded the webinar slides and provided a link to the webinar recording.
Click the link below to access the AAI New Grantee Orientation webinar slides. Once there, click “Download Now” to the right
of the page.
AAI New Grantee Orientation webinar slides – DOWNLOAD HERE
Also, to hear the full recording of the Webinar, click the link below:
We hope these resources are helpful to you. Please feel free to download, review and share with your grant partners.