The Power of Apprenticeships in a Changing Labor Market

The Power of Apprenticeships in a Changing Labor Market

Jun 11, 2025
Samina Sattar, Ryan Ruggiero, and Kirsten Miller
The Power of Apprenticeships in a Changing Labor Market

For decades, apprenticeships have been a cornerstone of workforce development in the traditional trades, providing hands-on training and structured learning. Recent labor market changes are creating opportunities for apprenticeships to modernize and expand into industries like healthcare, IT, and education. Recognizing this opportunity, a recent executive order from the Trump administration set a goal to grow the number of active apprentices to one million.

As states navigate the complexities of workforce development, apprenticeships present a clear path forward to address skills gaps, support economic growth, and create career pathways in an evolving labor market. States can strengthen apprenticeships by aligning their data systems and applying proven approaches.

Scaling the apprenticeship system through data access and quality

States with higher apprenticeship completion rates have stronger workforce pipelines, leading to better wages, job stability, and employer retention. But efforts to implement and scale apprenticeships vary by state, so sharing best practices is essential.

One key challenge in scaling apprenticeships effectively is data access and quality. Although the federal government holds the most comprehensive apprenticeship data in the Registered Apprenticeship Partners Information Database System (RAPIDS), these data remain disconnected from broader labor market trends. Not all states use RAPIDS, and apprenticeship data are not uniformly collected across all states.

Without strong integration of apprenticeship data with K–12, higher education, and other workforce system data; streamlined reporting; and technical support, employers and policymakers might struggle to assess a program’s success, limiting their efforts to expand apprenticeships into fields like healthcare and IT. Addressing this data gap could help states and industries make smarter workforce decisions, ensuring apprenticeships are focused on the populations and industries that need them most.

Here are some steps state policymakers and data personnel can consider when integrating data-driven decision making into their apprenticeship efforts:

  • Expand integration of data systems. Centralized apprenticeship databases that link workforce data across state labor agencies, education institutions, and employer partners would allow policymakers to analyze trends, track success rates, and forecast labor demands in sectors like healthcare and IT. The increasing integration of registered apprenticeship with service delivery from the Workforce Innovation and Opportunity Act also points to the benefits of linked systems. 
  • Enhance employer reporting. Encouraging businesses to standardize apprenticeship performance metrics—such as completion rates, wage progression, and employment outcomes—helps states and workforce boards assess program effectiveness and refine training models accordingly.
  • Leverage AI and predictive analytics. Using AI-driven analytics enables states to identify workforce gaps; predict apprenticeship demand and supply; optimize funding allocations for high-growth industries; and target new industries, regions, and employers.
  • Improve interagency collaboration. Aligning workforce and education efforts through joint policy initiatives and apprenticeship task forces ensures that all partners—including state economic development offices, community colleges, and industry leaders—have access to shared workforce data for informed decision making.
  • Expand public data access. Making workforce trends and apprenticeship outcomes publicly available through open-source dashboards fosters transparency and helps regional employers, training providers, and policymakers refine strategies for apprenticeship expansion.
  • Improve comprehensiveness and quality of data. Knowing who participates in and completes apprenticeships is key to tailoring strategies for specific local needs and growing the talent pipeline.

Implementing proven strategies tailored to the context

Apprenticeships work under the right conditions. The real challenge is understanding where they work best and how to scale them effectively across different sectors. Recent research shows that apprenticeship programs are most effective when states use one or more of the following approaches.

  • Industry-specific growth. Federal and state investments have fueled apprenticeship expansion into healthcare, IT, and education. Sector-driven approaches—in which states align apprenticeships with their dominant industries—yield stronger economic outcomes and sustainable workforce pipelines.
  • Pre-apprenticeships as a workforce strategy. Pre-apprenticeships (that is, programs designed to prepare people to enter a Registered Apprenticeship Program or other career opportunities) have reported high rates of entry into Registered Apprenticeship Programs and also high rates of participation from underrepresented groups. Strengthening these entry points, especially through targeted mentorship and employer incentives, could help expand access to apprenticeships.
  • Apprenticeship degrees as a viable pathway. Many states are discussing degree apprenticeships, particularly in fields like teaching and nursing, in which traditional education models may not always meet the workforce’s needs. Developing formalized programs that offer a degree and apprenticeship training could provide workers with clearer career progression and reduced student debt and help industries develop more standardized training pathways.
  • Cross-sector partnerships to reach more apprentices. Community colleges and intermediaries such as industry associations often have broad reach and strong employer ties. Other partners that could help reach apprentices include state education, commerce, and vocational rehabilitation agencies; state and local workforce boards; and K–12 and technical high schools.

About the Authors

Samina Sattar

Samina Sattar

Principal Researcher
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Kirsten Miller

Kirsten Miller

Senior Communications Specialist
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