The Impact of Apprenticeship Programs in Illinois: An Analysis of Economic and Social Effects

“This study…investigates the effect of registered apprenticeship programs on the workers, businesses, governments, and economy of Illinois.

 

“Construction is the fastest-growing industry in Illinois. Over the next decade, the construction industry is projected to expand by 12.4 percent in Illinois, adding over 25,000 new jobs. At this pace, construction employment will grow at twice the pace of the overall state economy. All of the fastest-growing trades in Illinois’s construction industry require at least 3 years of apprenticeship training” (p.i).

 

“Despite the presence of registered apprenticeships in many Illinois industries, especially construction, little policy research has been conducted to analyze their economic and social impacts” (p.1).

 

The report begins with a review of the existing literature on apprenticeship programs and an explanation of the data and methodology used in this analysis. A discussion about projected construction employment growth ensues. Then, a full evaluation of the impact of construction apprenticeships follows– complete with an overview of registered apprenticeship programs in Illinois, estimates on their annual and long-term economic effects, and a comparison of construction apprenticeships with other levels of educational attainment. Finally…other ‘apprenticeable occupations’ are presented before six potential policy recommendations are offered to expand registered apprenticeship programs across the state” (p.1).

 

(Abstractor: Author)

“Registered apprenticeship programs in Illinois’ construction industry generate substantial economic benefits to the state every year….Over one year, the economic return on investment (i.e., the ratio of the GDP effect to program expenditures) is $3.00 per dollar spent on worker training. Registered apprenticeship programs in construction also increase state and local tax revenues by $28.6 million every year” (p.i-ii). “Registered apprenticeship programs have even larger impacts over the long run. Registered apprenticeship programs in Illinois’ construction industry provide $1.25 billion in long-term economic benefits to the state” (p.ii). “While the construction industry accounts for 89.2 percent of all registered apprentices in Illinois, the economic benefits of registered apprenticeships could be expanded into many other sectors. The United States Department of Labor lists 1,060 ‘apprenticeable occupations,’ of which only 121 are in construction (11.4 percent)….From fast-growing occupations such as home health aides, nurse assistants, and computer programmers to traditional occupations like truck drivers, machinists, and corrections officers, there is substantial opportunity and an increasing need for apprenticeship programs to improve worker productivity, support the middle class, and grow the economy. The State of Illinois can enact six potential public policies to promote registered apprenticeship programs.… 1. Improve marketing and outreach to businesses and disadvantaged workers; 2. Expand access to child care programs to boost female participation; 3. Provide tax credits to businesses that offer apprenticeship programs; 4. Expand pre-apprenticeship programs in public high schools and support comprehensive trades programs…” (p.ii); 5. “Encourage public universities to develop degree completion programs for eligible apprentices by awarding college credits for classroom hours earned during apprenticeship programs; and 6. Support policies that increase unionization and strengthen prevailing wage. Apprenticeship programs have positive social and economic impacts in Illinois. The programs benefit workers by improving their skills and growing their incomes. The programs also benefit employers by addressing skills shortages through a supply of safe, productive workers” (p.ii). (Abstractor: Author)

• Last Updated:
• Created:
• Resource Publication Date: 2016
• Author(s): Bruno, Robert and Manzo IV, Frank.
• Organizational Author(s): University of Illinois at Urbana-Champaign; Illinois Economic Policy Institute
• Funding Source: Funding source not identified
• Resource Availability: Publicly available
• Posted by: Wesley Peterson
• Posted in: Workforce System Strategies