Marketing Apprenticeship in the U.S. The Case of South Carolina Robert I. Lerman Urban Institute and American University Johannesburg, 23 April 2013

Modest Scale of Apprenticeship in US With weakness in the US economy and especially construction, civilian slots in apprenticeship fall from 400k to 250k US has three apprenticeship systems Registered system (state and federal) Unregistered system (scale unknown) Youth apprenticeship (rare)

Minimal Budget for Apprenticeship Budget for the Office of Apprenticeship is minimal for large country ($26 million) Enough for 1 person in Ohio Some marketing, but much regulation Little role for serious marketing One reason for low apprenticeship penetration in the US

South Carolina’s unusual success Apprenticeship Carolina Chamber and technical college system enact $1 million plus tax credit of $1,000 Since 2008, developed one new program per week, programs rise from 90 to nearly 600, apprentices rise from 780 to 4,500+ Gains during economic, jobs downturn

Key Questions What approach did South Carolina use? What made it so effective? Did it involve conversations between firm staff and apprenticeship staff? What are the lessons for other states? Paper draws on interviews with leaders of Apprenticeship Carolina

Initial Context Meaning of “registered apprenticeship” Under Labor Department Office, OA OA responsibilities—issue certificates, protect health and safety, monitoring equal opportunity, and registering programs Many firms in unregistered programs Federal-state governance; half of states in each; South Carolina is a federal state

Apprenticeship Carolina Emerges State chamber of commerce with state technical college system—develop study in 2003-4 showing the need for skills Commission survey on “apprenticeship”; it shows neutral attitudes on the word Apprenticeship Carolina was the brand that gave local ownership; nothing about department of labor Skeptics raise two questions Is apprenticeship really the right direction? Is apprenticeship feasible in many countries? bGoeyond

How to Market Who should be hired for marketing? Chose individuals with business degrees and business backgrounds Give crash courses on apprenticeship Work with one representative in the state from the Office of Apprenticeship Tax credit draws interest in apprenticeship

Advertising and selling apprenticeships Website but selling business by business Program works with business to diagnose skill demands; work with expertise from the technical colleges; then ask how businesses can improve outcomes Establish content standards drawing from already registered programs Do paperwork for firms

Reaches Many Sectors Most apprentices in the US are in the construction sector, led by unions Reaches many sectors by offering flexibility and using competency-based Health, advanced manufacturing Uses existing standards as a starting point

Competitive Advantages Example of major pharmacy company Establish state-wide program for pharmacy assistants as apprenticeships Major success—now competitive firms in the pharmacy field are trying to replicate those of initial system Company curriculum viewed as propriety

Adapting to Employer Interests Only now is Apprenticeship Carolina linking into high schools and moving to a youth apprenticeship concept Have ambitious goals for continuing growth—no evidence of a slowdown Amazing accomplishment that takes place during serious economic downturn