U.S. Senator Amy Klobuchar has cosponsored bipartisan legislation to enhance the competitiveness of our workers and businesses in the global marketplace by supporting and expanding the use of apprenticeships. Apprenticeship programs are a tried and true model of workforce development, allowing workers to earn while they learn and companies to increase the skills of their workforce. The Apprenticeship and Jobs Training Act of 2017 creates a concrete, powerful incentive for businesses to embrace apprenticeship programs, accelerating the adoption of the apprenticeship model and boosting training and education available to workers.
"Ensuring that our workforce has the skills needed for the jobs of tomorrow is be crucial to advance a competitive agenda for our country," Klobuchar said. "This bipartisan legislation rewards businesses that invest in apprenticeship programs while giving workers the tools they need to get good-paying, in-demand jobs."
American companies' investment in job training and education has declined steadily since the mid-1990s. U.S companies are only investing half of the amount in job training they did a decade ago. The Apprenticeship and Jobs Training Act would accelerate the expansion of the apprenticeship model in this country by providing a $5,000 tax credit for new registered apprentices hired by American companies.
The apprenticeship model is increasingly necessary today. In a Minnesota 2017 State of Manufacturing report, 68% of respondents said it was difficult for them to find workers with the right skills and experience this year. According to the National Skills Coalition, fifty-three percent of U.S. jobs are middle skill, meaning that they require some form of postsecondary education and training beyond high school, but not a four year degree. Yet, only 43 percent of U.S. workers are trained at this level.
Apprenticeship programs benefit both the company and employee. According to a study by the Department of Labor, workers who finish apprenticeships earn an average of $240,000 more in wages over a lifetime than job seekers with similar work experience. According to the Urban Institute, more than 80 percent of U.S. companies that have registered apprenticeships say it is an effective strategy for helping them meet their demand for skilled labor, and 94 percent of employers would recommend registered apprenticeships as a strategy to other employers.