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Washington, DC - Since the beginning of his Administration, President Obama has focused on creating an economy that works for every American. Under his leadership, our businesses have added 15.3 million jobs since early 2010, and the economy has seen the longest streak of job creation on record. However, more work needs to be done to make sure the benefits of the recovery are broadly shared. We must continue to adapt to forces of globalization and technology that deliver tremendous benefits but also pose challenges, including through increasing investment in effective job training. The jobs available today, and the jobs of the future, are higher-skill jobs that require more education and advanced skills.

Today, the Department of Labor (DOL) is announcing the Administration’s latest step to increase access to apprenticeship – using  Fiscal Year 2016 funding for a new $50.5 million investment in State Expansion Grants to expand apprenticeships across the country in a diverse array of industry sectors. This initiative, called ApprenticeshipUSA, is part of the Administration’s strategy to grow and diversify apprenticeship.  Over the next 18 months, this effort will result in thousands of new apprenticeships in diverse industries, including health care, advanced manufacturing, and information technology, that offer workers not just jobs, but careers. These grants provide funding to 36 States and one territory to undertake new apprenticeship efforts, which will include efforts in both urban and rural communities. Projects will focus on helping a diverse set of workers – including women and minorities who have too often been left out of apprenticeship efforts in the past – enter into these in-demand fields.

To learn more about the efforts of all 37 winning ApprenticeshipUSA State Expansion grantees, click HERE.

Job-driven apprenticeships are among the surest pathways to provide American workers from all backgrounds with the skills and knowledge they need to acquire good-paying jobs and grow the economy. In fact, 91 percent of apprentices are employed after completing their programs, with an average starting wage above $60,000. The return on investment for employers is also impressive — international studies suggest that for every dollar spent on apprenticeship, employers may get an average of $1.47 back in increased productivity and greater front-line innovation. As a result, the President has made expanding apprenticeship a priority for his Administration.

Since the President's 2014 call to action, the U.S. has added more than 125,000 new apprenticeships, the largest increase in nearly a decade. And last year, the President signed into law the first-ever annual funding for apprenticeship programs in the Fiscal Year 2016 spending bill, following a bipartisan agreement based on the President’s budget request.

But, we cannot carry on this work without continued funding, which the House Appropriations Committee’s Labor-HHS-Education bill unfortunately fails to provide. 

In contrast, the Senate Appropriations Committee provides strong support for apprenticeship, which we hope will be reflected in the final Fiscal Year 2017 spending bill. If this funding does not continue going forward, the 36 States and one territory who have received ApprenticeshipUSA State Expansion Grants will have to terminate their efforts in just 18 months. Similarly, the 14 organizations who were awarded $20.4 million in contracts to expand apprenticeship to new industries and reach historically underrepresented populations will see their funding dry up after one year. This would deprive thousands of Americans of the chance to participate in this life-changing training model. The President calls on Congress to continue its past support for apprenticeship in the final Fiscal Year 2017 spending bill.

Today’s announcement builds on a number of efforts that the Obama Administration has taken to prepare Americans for the jobs of the future.  More information on the Administration’s state-by-state investments in training can be found HERE.

Investing More Than $50 Million to Support Smart State Strategies to Expand Apprenticeship

The grant awards announced today will build on the Administration’s successful investments in state apprenticeship strategies. Recognizing Governors’ unique ability to create smart statewide strategies to expand apprenticeship, DOL is awarding more than $50 million for ApprenticeshipUSA State Expansion Grants to help states integrate apprenticeship into their education and workforce systems; engage industry and other partners at scale to expand apprenticeship to new sectors and new populations; support state capacity to conduct outreach and work with employers to start new programs; provide support to promote greater inclusion and diversity in apprenticeship; and implement state innovations, incentives, and system reforms. By investing in state strategies for growing apprenticeship opportunities, these funds will help strengthen the foundation for the rapid and sustained expansion of quality apprenticeship nationwide. For example:

Colorado Department of Labor and Employment – Denver, CO
The Colorado Department of Labor and Employment was awarded a $1.8 million grant to fund the Grow the Middle Class project to expand youth and adult apprenticeships, and pre-apprenticeships for youth within school districts across the state, using the Swiss Apprenticeship model. Colorado will assist businesses in developing new apprenticeships and industry engagement and initiate a pilot program to recruit representatives from growth industries as champions to identify common competencies and standards for apprenticeships in key occupations. 

Washington State Department of Labor and Industries – Tumwater, WA
The Washington State Department of Labor and Industries was awarded $2.7 million to fund Project RAISE, a robust effort to coordinate state agency resources, recruit new employers, and advance Registered Apprenticeship opportunities for underrepresented populations. Project activities will include program modernization to increase the state’s capacity to support apprenticeship expansion and engage new industry stakeholders. The project will register 600 apprentices in the industries of health care, education, construction, advanced manufacturing and the public sector, among others.  Target populations include women, veterans, youth, low-income individuals, people with disabilities and people of color. 

Connecticut Department of Labor Office of Apprenticeship Training - Wethersfield, CT
The Connecticut Department of Labor Office of Apprenticeship Training (OAT) was awarded a $1.6 million grant to fund the Connecticut Apprenticeship Expansion Rx project, which targets the aerospace manufacturing and maintenance sector. The project will engage employers to increase new sponsors; and provide underrepresented populations, including women and dislocated and under employed individuals an opportunity to acquire industry required credentials. The project will serve 1,672 apprentices. Target industries include aerospace, aviation, energy, and the building trades. OAT and its partners will also develop multi-media resources as additional tools for sector outreach, a focus on stakeholder engagement, securing apprenticeship sponsors, fostering labor-management collaboration, and planning for increased strategic outreach.

Today’s announcement follows a $10.4 million investment DOL made earlier this year for ApprenticeshipUSA State Accelerator Grants, which provided 52 awards to states, territories, and the District of Columbia to develop strategic plans and build partnerships for apprenticeship expansion and diversification. Grantees also received support to develop comprehensive game plans for encouraging businesses to launch apprenticeship programs in a variety of industries including advanced manufacturing, health care, information technology, construction, and transportation.

In addition, DOL awarded $20.4 million last month in contracts to 14 national industry intermediaries and national equity partners. As part of the historic investment in apprenticeship, the contracts will support the growth of apprenticeship programs in an increasingly diverse set of industries, including healthcare, construction, transportation and logistics, manufacturing, and information and communications technology; and support efforts to boost the representation of traditionally underrepresented populations in apprenticeship programs. For example, the Washington Technology Industry Association will partner with leading technology companies to create a National Information and Communications Technology Apprenticeship Council (NICTAC) comprised of industry hiring partners. The NICTAC will provide underserved populations with access to apprenticeship opportunities in well-paying careers within the information and communications technology industry.  More information on this project and other industry intermediary and national equity partner investments can be found HERE.

Building on Success in Expanding Apprenticeship and Increasing Access to Job-Driven Training

Today’s announcement builds on the Obama Administration’s previous efforts to increase access to apprenticeship and job-driven training to prepare workers for high-skill jobs, including:

Investing an unprecedented $175 million in American Apprenticeship Grants. In September 2015, DOL announced $175 million in grants to 46 public-private partnerships between employers, organized labor, non-profits, local governments, and educational institutions that are expanding high-quality apprenticeships. The grantees are well on their way to creating more than 34,000 new apprentices in high-growth and high-tech industries including health care, information technology and advanced manufacturing over the next five years. 

Highlighting the value of apprenticeships through LEADERS. More than 180 employers, colleges, and labor organizations have signed on to be ApprenticeshipUSA LEADERS (Leaders of Excellence in Apprenticeship Development, Education and Research) by starting or expanding their own work-based learning programs and encouraging their peers to follow. Together, employers in the LEADERS program have pledged to create nearly 20,000 new apprenticeship positions. 

Expanding opportunities for apprentices to earn credit towards a degree. The Registered Apprenticeship-College Consortium (RACC) was launched to enable graduates of Registered Apprenticeship programs to turn their on-the-job and classroom training into college credits toward an associate or bachelor’s degree.  Since 2014, 290 colleges nationwide have joined the RACC. 

Providing American Workers with Skills Needed to Compete in the Global Economy

In addition, in January 2014, President Obama signed the Presidential Memorandum on Job-Driven Training for Workers, calling for an action plan within 180 days to make federal employment and training programs more job-driven. In July 2014, the Administration – with the leadership of Vice President Biden – released a plan to expand the number of pathways for Americans to gain the skills they need to get better, higher-paying jobs, and to increase access to those pathways. In addition, the Administration has taken a number of steps to support the American workforce and prepare it for the 21st century, as described below.

Making sure all Americans have a fair shot
The President has taken steps to expand and improve our efforts to re-connect workers who have been displaced by economic change back to the workforce system and into good jobs. Building on the best models of what works, these efforts have helped not only those affected by trade and globalization, but also by the aftermath of the Great Recession, by long-term changes in our energy industry, and in communities that have long suffered from economic isolation and inadequate education opportunities.

Scaling Up What Works
Through the course of the Vice President’s review, the Administration identified three core problems: employers can’t find enough skilled workers to grow their businesses; education and training programs need better information on what skills in-demand jobs require; and, hard-working Americans often are not sure what training to pursue and whether jobs will be waiting when they finish. By listening to employers, workers and training institutions utilizing innovative solutions, and working with Congress, we are implementing common-sense, evidence-based reforms that are helping people find and train for good jobs and ensuring that employers can find the skilled workers they need.

Doubling Down on Proven Strategies
An evaluation report promised in the 2014 Presidential Memorandum synthesized the elements of what works in job training, and the Administration is using this evidence base to direct limited federal resources into the most results-driven practices. Through administrative actions and by advancing budget proposals, we are using every tool at our disposal to expand successful models that put workers on the path to a good career with a middle-class wage.

Partnering With Employers, Communities, and Training Providers
As a complement to these federal efforts, the Administration is taking steps to partner outside of government—with employers, technology innovators, and educators—to develop job-driven workforce strategies. Through these partnerships, the Administration is helping to offer more Americans access to the knowledge and skills they need to pursue their educational and career goals while, at the same time, helping businesses grow by filling in-demand jobs with a skilled workforce.