Despite efforts to expand registered apprenticeships into other fields, the construction industry still
employs the bulk of all apprentices, according to a new report from the U.S. Department of Labor (DOL).
From 2019 through 2022, there were 2.8 million participants in registered apprenticeship programs across all industries, the report says. More than 1.1 million apprentices were enrolled in construction apprenticeships during that period.
The trades with the most apprentices in the construction industry were electricians, plumbers and pipefitters, carpenters, laborers and sheet metal workers, the report notes. DOL anticipates construction will remain strong among registered apprenticeships thanks to recent federal laws to modernize the U.S. infrastructure and expand clean energy. The Infrastructure Investment and Jobs Act, Inflation Reduction Act, and CHIPS and Science Act also include provisions for using registered apprenticeships.
After construction, the industries with the highest enrollments were educational services (426,000 apprentices), public administration (211,000), manufacturing (154,000), utilities (86,000), and healthcare and social assistance (86,000).
Expanding programs
The DOL report examined whether registered apprenticeships delivered living wages for participants, but it also provided other details about the programs, which have steadily been growing as an alternative pathway to good-paying careers. In fact, the number of active participants in registered apprenticeships more than doubled in less than a decade, the report says. In fiscal year 2024, there were about 680,000 active apprentices across the United States, a 114% increase over the count in fiscal year 2014 (nearly 318,000 active apprentices). In addition, the annual number of graduates from registered apprenticeships grew by 143% over the same 10-year period, from about 46,000 completers to nearly 112,000 completers.
The report also provides information on demographics. Apprentices have historically been overwhelming White males. Despite efforts to diversify enrollees, it is still largely the same, though Hispanic participants comprise a significant portion. According to the report, apprentices in registered apprenticeships are 56% White (1.6 million participants), 21% Hispanic (576,000), 10% Black (270,000), 3% Asian (78,000) and 1% Native American (27,000). Men account for nine-in-10 apprentices (88%).
The report also observes that participants in registered apprenticeships are mainly older. Those between ages 25 and 54 years comprised 61% of total enrollees, while those under age 24 were another 38%.
Additionally, more than 231,000 apprentices were military veterans (8%).
A look at wages
In terms of wages, apprentices across all industries earned on average $18 per hour at the time of entry and $32 per hour upon completing their programs — a growth of 77%.
The evaluations found that registered apprenticeships effectively deliver career pathways with access to living wages. Among all apprentices in registered apprenticeship programs, 76% of starting wages for new apprentices were at least $15 an hour, 56% could cover basic expenses, and 35% could pay for modest two-bedroom apartments in their communities, the report says. Upon completion of the programs, 95% of exit wages were at least $15 per hour, 92% of apprentice completers could cover basic expenses, and 74% of apprentice completers could pay for modest two-bedroom apartments.
In construction, 98% of exit wages could cover basic expenses and 82% could pay for modest two-bedroom apartments, the report notes.
Incentives to employers
The report cites ways some states have expanded registered apprenticeships. For example, same have used tax credits and incentives. In Illinois, a law that went into effect in 2019 incentivizes employers to assist apprentices with tuition through a tax break. It provides a nonrefundable tax credit up to $3,500 for tuition, books and fees per apprentice per year that reduces a business’ income tax liability. The credit was increased to $5,000 if either the business address or the apprentice’s home address was in an underserved area, the report says.
Similarly, in South Carolina, Apprenticeship Carolina — which is a division of the South Carolina Technical College System — provided a $1,000 employer tax credit per apprentice per year. It focused on building relations with employers, marketing apprenticeships as alternatives to traditional educational pathways, identifying core job competencies, and coordinating curricula for apprenticeship programs and technical colleges, the report says.
The report for DOL was conducted by researchers at the Project for Middle Class Renewal at the University of Illinois at Urbana-Champaign and the Illinois Economic Policy Institute.
