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SOLUTIONS FOR BRIDGING THE SKILLS GAP January 2019 • Advanced Technology • Aerospace | Aviation • Banking • Educational Services • Energy | Petroleum • Healthcare • Homeland Security • International Trade • Manufacturing • Tourism, et al. BUILD A WORKFORCE. TRANSFORM LIVES. ESTABLISH SUSTAINABILITY. INTEGRATIONAL COLLABORATION IS KEY SUSTAINABLE SOLUTIONS There is a skills gap crisis across America. Implementing apprenticeship programs in all career clusters across-the-board is the answer to bridging the skills gap and alleviating the student loan debt ratio. In addition, aligning mentorship programs with seasoned professionals (retirees) within each career cluster will create a strong workforce through knowledge transfer. Beginning early by coordinating strong industry partnerships within each HB5 Endorsement is critical to breaking the barriers between industry, academic institutions and community groups to begin a systematic streamlined solution. Why Apprenticeships? Apprenticeships work! Apprenticeship programs are a fast-track solution to ailments facing Texas and the nation. ● AMERICA stands at $1.5 trillion in student loan debt, approximately 44% of students defaulted and 29% are in deferment. ● Seasoned professionals leaving the workforce in high number – the Baby Boomer generation is entering retirement; 10,000 are leaving the workforce daily. ● Statistics show that 67% of college grads don’t have jobs lined up, many land jobs, but not in their field of study. ● A 2012 report by Statista indicates, the youth unemployment rate in Texas stands at 13.5 % (ages 16-24). ● In Texas, 20% of young adults ages 20-24 are unemployed. Texas Apprenticeships In Texas, there are over 430 registered apprenticeship programs with 17,473 active apprentices. According to the National Center for Education Statistics, college and university enrollment in fall 2018 was at 19.9 million, with some 6.7 million students projected to attend 2-year institutions and 13.3 million to attend 4-year institutions in fall 2018. Students engaged in apprenticeship programs should be close to equal these numbers. Apprenticeship ROI Apprenticeships earn a high return on investment. Various studies conducted across America show positive impacts. A 2012 study conducted by MATHEMATICA Policy Research on the Effectiveness of Registered Apprenticeships in 10 States found that for every dollar invested in Apprenticeships, the tax returns (return on investment) were $27 and total benefits were more than $35. USDOL reports: Apprentices who complete the program stay with the company to become employees in over 90% of reported cases. The retention rate is incredibly competitive in a limited labor market, with an average starting wage of over $60,000 per year. Siemens USA obtains at least 50% rate of return on its apprenticeship program, compared to hiring machinists off the street. Dartmouth-Hitchcock Medical Center found that its Medical Assistant apprenticeship program nearly paid for itself within the first year. Energy, Oil, Gas, Renewables Texas is rich in energy industry components, from petroleum, to crude oil, wind and solar energy. The future is bright for energy discoveries and technological advances. USDOL National Data & Statistics • In FY2017, more than 190,000 individuals nation wide entered the apprenticeship system and 64,000 participants graduated from the apprenticeship system. • Nationwide, there are over 533,000 apprentices currently obtaining the skills they need to succeed while earning wages needed to build financial security. • In FY2017, United Services Military Apprenticeship Programs (USMAP) gained 12,063 programs Meeting the Human Capital Demand by Sylvia Ortega Praesel, M.A. STATE OF APPRENTICESHIPS The United States is looking to the European model of apprenticeships for expanding American Apprenticeship programs and bridging the skills gap. Since 2015, CAPED has been at the forefront of outreach and advocacy efforts for more apprenticeships, advocating for streamlining efforts between academic institutions and key industries, in addition to soft skills training and mentorship programs.
