By OECD Senior Policy Analyst Marieke Vandeweyer and Vlasis Korovilos, expert in VET for adults and apprenticeships at CEDEFOP
In today’s economy, rapid changes such as the digital and green transition are creating a demand for specialised skills. But in many sectors, the demand for skills outpaces the supply of qualified professionals. This situation underscores the urgent need for accessible educational pathways – including in higher education. One promising option is the expansion of apprenticeships: giving people hands-on training, earning potential and career advancement opportunities. By taking on apprentices, businesses give themselves a sustainable method of recruiting and training employees to meet skills needs, helping them to stay competitive and foster employee loyalty and retention.
At the recent joint OECD-CEDEFOP symposium ‘New fields for apprenticeship’, experts highlighted the potential of apprenticeship for different sectors of the economy and different types of learners. “Apprenticeships do work across different sectors and levels,” the Head of the OECD Centre for Skills El Iza Mohamedou told the audience. “(But) we still have to do a lot of work to further the case for apprenticeships.”
Indeed,apprenticeships are sometimes overlooked in certain sectors as pathways to educational and career advancement. Apprenticeships are often associated with traditional crafts and trades, analysts said, but many countries have been investing in expanding into new fields and higher levels of education, which also contributes to diversifying the profile of apprentices.
In many countries, there has been a push to get more adults back into education and training to upskill. For example, in the United States, the Department of Labor’s American Apprenticeship Initiative (AAI) sought to increase the number of apprentices in high-growth jobs and industries, including under-represented populations. According to an AAI evaluation of earnings data, apprenticeships can lead to significant wage boosts.
“AAI apprentices experienced substantial earnings gains,” according to Douglas Walton, an Associate at Abt Global, who outlined some of the evaluation’s findings. “Earnings grew by about 50 percent on average between the year prior to starting the apprenticeship (35 408 USD on average) and the year the programme was completed (52 876 USD on average).”
“Earnings grew more for women than men,” Walton added (by 19 334 USD, a 65% increase for women versus a 16 469 USD rise in earnings for men, a 43% increase). “So, we did observe somewhat of a narrowing of the gender wage gap.”
Expanding apprenticeships
One of the key benefits of apprenticeships is the direct link between training and employment. Apprentices are employed during their training, which means they are earning an income from day one. This model not only provides some financial return but also ensures that apprentices are gaining in-demand, relevant skills. The AAI evaluation in the United States highlighted that people who completed apprenticeships in high-growth industries, such as healthcare, information technology and advanced manufacturing, saw big jumps in wages.
For example, apprentices in computer and information technology earned about 22 500 USD a year, on average, before their apprenticeship started, but after completing their programme earnings jumped to an average of 62 000 USD, Walton said. This highlights the possible financial benefits to individuals if apprenticeships are expanded into high-wage occupations.
“Future programmes should be really intentional and thoughtful about what specific occupations they promote the expansion of apprenticeships in,” Walton said.
Ireland is another country that has highlighted the benefits of apprenticeships. In Ireland, an apprenticeship scheme aimed at addressing a lack of younger employees in the insurance sector was launched almost a decade ago and has led to hundreds of qualified apprentices.
“Employers note this is a really valuable pipeline for talent,” Dr. Bryan Coyne, a Lecturer in the Faculty of Business & Social Sciences at Atlantic Technological University told the audience. “It is really useful for getting early employees into the industry, coming in with relevant skills which is really beneficial.”
According to Dr. Coyne, at the time of the survey in late 2022, apprentices began on an average salary of 24 950 EUR. Recent graduates surveyed at the same time, reported an average wage of 38 289 EUR. With three more years of experience, graduates surveyed reported an average salary of 51 500 EUR – substantially higher than the national average wage and approaching the national median wage. The financial benefits for apprentices are clear for all to see but, according to a survey of Irish insurance companies involved in the scheme, Irish businesses recognise many benefits too:
“They have access to talent, it helps inform their talent management strategy, it helps reduce their onboarding costs for them as an employer,” said Dr. Coyne.
As countries move towards more AI and green driven economies, the scope for apprenticeships to offer numerous benefits, to both the participants and the employer, are immense. To give the last word to Jürgen Siebel, the Cedefop Executive Director:
“In this rapidly evolving world, apprenticeships are significantly advantaged to cope with, and to support, innovation – creating opportunity and prosperity for all.”
