The headlines are impossible to escape. America is facing a labor shortage across many industries. Despite low unemployment rates, our country remains mired in economic uncertainty. Especially now, white-collar jobs appear to be a risky proposition for many, and the path to get to those careers is costly with lower and lower returns.
Meanwhile, blue-collar industries, like HVAC/plumbing service trades, manufacturing, construction, and more, are offering the next generation of workers a smarter, more stable — yet, still lucrative — career path. Because of this, trades currently have a unique opportunity to not only take advantage of growing interest in their work but also show the next generation the value of these industries, the respect that they deserve, and to further establish their roles to the future through important contributions to society. Businesses should take advantage of this opportunity and consider offering an apprenticeship program to attract new talent.
White-collar layoffs have been in focus during the start of 2023 and are only expected to worsen. Workplace research firm Challenger, Gray & Christmas Inc. reported in early January that total job cuts for U.S. based employers were up 129% year-over-year in 2022, and of these cuts, the bulk comes from the technology industry — up a staggering 649% in job cuts year-over-year. Amidst these cuts, those looking to enter the workforce should be (and are) considering the stability historically associated with blue-collar work — and blue-collar companies can make those positions more accessible through training and apprenticeship programs.
When compared to apprenticeships, formal college offerings that are usually seen as the traditional stepping stone to white-collar work are becoming increasingly inaccessible for students as prices rise, with the effects clear in the lowering of enrollment rates. According to the Education Data Initiative, the average cost of college tuition and fees at public, four-year institutions has increased by 179.2% over the last 20 years, totaling an average annual increase of 9%. As a result, experts have seen postsecondary enrollment at public and private universities fall, with the National Student Clearinghouse Research Center reporting a 4.1% dip in enrollment from 2021-2022. On the contrary, the U.S. Department of Labor has found that apprenticeship enrollments have steadily grown, with a 6% increase from 2021-2022 and an overall increase of 98% since 2013.
Ultimately, apprenticeships offer a more efficient and affordable path to a stable and rewarding career with growing resources that incentivize prospective workers to join. In most states, apprenticeships are much less expensive than the overused path to a degree and offer a certificate of completion that is nationally recognized in a comparable way. Certain states, like Florida, don’t even allow students to be charged for the classroom portion of an apprenticeship, and many employers and federal programs reimburse most or all of tuition costs for registered apprenticeships.
The stability opportunities associated with blue-collar careers, especially those accessed through apprenticeship training, is undeniable. Ninety-three percent of those who complete an apprenticeship retain long-term employment with an average annual salary of $77,000, according to data from the U.S. Department of Labor (versus an average of $39,000 for those graduating with a liberal arts degree, according to Zippia). From technicians for home systems (HVAC, plumbing, appliances) to laborers in manufacturing, construction, and utilities, blue-collar positions offer much more than just hands-on tasks. They provide fulfilling work in industries that often further society by contributing to sustainability, infrastructure, and more. These industries deserve recognition as the key to our future, as they further green technologies, contribute to society’s key facilities and systems, and help families across the country live safely and comfortably. We are seeing growing interest in fulfilling positions that give back to communities.
For these reasons and more, there has never been a better time for blue-collar businesses to offer a registered apprenticeship program, as interest grows in affordable training that leads to stable, fulfilling careers. Pursuing these programs will keep consistent, skilled labor from the incoming generation of workers flowing into these industries.
Further, these programs balance the conversation around respecting all job paths. While there is existing respect for intelligence quotient (IQ) and emotional intelligence (EQ), there is just as much value in “mechanical intelligence” — building, creating, fixing, and scaling things in a way that is equally critical to society as typical desk jobs. The competitive wages and growing job demand are evidence that the common bias against blue-collar work has actually created an amazing opportunity for many men and women.
For countless business resources on how to build these apprenticeship programs, as well as information on tax credits and grants that support their expansion, visit the U.S. Department of Labor’s website at Apprenticeship.gov.
