The data is clear: Registered Apprenticeship Programs (RAP) provide ROI for employers, increase worker wages, and support local communities. Unfortunately, the upfront costs and administrative burdens are barriers to apprenticeship expansion. Compounding these barriers is the current uncertainty in the macro-economic environment with respect to trade policies, government spending, and monetary policy. In short, private companies are operating with a short-term outlook when apprenticeship is a long-term investment.
How can local governments invest in apprenticeship while fighting these economic headwinds? The answer is surprisingly simple and budget friendly. State and local governments should add apprenticeship utilization requirements in their procurement of goods and services.
Existing apprenticeship utilization requirements for public construction projects mandate that a specified percentage of total on‑site labor hours be performed by workers who are registered apprentices in state‑ or federally approved apprenticeship programs. At the state and local level, many jurisdictions—such as Washington State—require that at least 15 percent of total labor hours on covered public works projects be performed by registered apprentices. These policies aim to leverage public infrastructure spending to expand workforce training capacity, ensure a future supply of skilled construction workers, and integrate apprenticeship into publicly funded construction delivery systems.
According to the Federal Reserve Bank of Saint Louis, state and local governments spend between $700-$800 billion per year on goods and services. These include healthcare, professional and technical services, equipment, information technology, and contracted operations often obtained through competitive solicitations. These solicitations already include rubrics for evaluating product and service quality, price, timeliness, and other factors. Adding scoring incentives for companies that currently hire or commit to hiring apprentices would be easy and low to no cost for budget strained public agencies.
What might this look like in practice? A county community health outreach contract could require 5-10% of the hours worked be performed by apprentices similar to local priority hire requirements. An RFP for emergency vehicles could award points for companies that have an active registered apprenticeship program at their production facility. An IT services contract could provide incentive payments for meeting apprentice hours on the project.
Multi-year government contracts give companies the confidence they need to make longer term workforce investments. Government contracts provide stable, predictable revenues that can often be renewed or extended. Additionally, State, and local governments could partner with apprenticeship intermediaries to provide technical assistance and resources to lower the barriers to starting or expanding apprenticeship programs. Intermediaries can lower barriers to adoption for smaller firms and remove costly program development.
Leveraging funds already budgeted for needed goods and services provides a large economic lever to advance apprenticeship opportunities for workers and strengthen private sector workforce development pipelines. Putting nearly a trillion taxpayer dollars to work to grow Registered Apprenticeship could be a game changer in growing earn and learn opportunities in communities across the nation.
