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New report suggests Indiana’s ambitious apprenticeship plan will face challenges

Indiana is facing a significant challenge when it comes to meeting the demand for skilled workers in the state. As the gap between available jobs and qualified individuals continues to widen, education leaders are turning to work-based learning programs, particularly apprenticeships, as a solution. Apprenticeships are widely regarded as a gold standard of workforce training, providing individuals with hands-on experience and industry-specific credentials.

Stephanie Wells, President of the Indiana Fiscal Policy Institute (IFPI), recently authored a policy brief highlighting the importance of scaling apprenticeship programs to meet the current workforce needs in the state. While there is a growing interest in creating robust youth and adult apprenticeship programs, Wells cautions that achieving a lasting apprenticeship model will be challenging.

One of the key recommendations from the IFPI brief is to simplify the regulation and oversight of apprenticeships to make it easier for employers and intermediaries to navigate the system. State-funded incentives, such as grants or tax credits to subsidize apprentices‘ wages, are also recommended to encourage more employers to participate in these programs. Access to better apprenticeship data at both the state and national levels is deemed critical for the success of these initiatives.

Indiana’s employment landscape reflects the urgency of addressing talent needs in the state. With 72 available workers for every 100 open jobs, Indiana is struggling to fill crucial positions. The state’s unemployment rate of 3.6% in April 2024, compared to the national average of 3.9%, underscores the need for innovative solutions like apprenticeships to bridge the skills gap.

To support workforce development efforts, Indiana policymakers have introduced initiatives like the Next Level Jobs programs and the Office of Work-Based Learning and Apprenticeship. These programs aim to provide training opportunities for individuals seeking to enhance their skills and qualifications. Despite these efforts, the completion rates for apprenticeships remain low, highlighting the need for improved program design and support for diverse populations.

While apprenticeships offer a positive return on investment for employers and lead to significant wage gains for participants, there is a lack of organic employer demand for these programs in Indiana. To address this issue, the state must focus on recruiting more employers and expanding opportunities for underrepresented populations in apprenticeship programs.

Looking ahead, Indiana is considering a major high school diploma redesign that would incorporate work-based learning experiences, including apprenticeships, into graduation requirements. Modeled after Switzerland’s successful apprenticeship system, the proposed youth apprenticeship program aims to provide students with valuable career pathways and increase labor participation rates in the state.

However, challenges remain, including the need to recruit more employers to participate in apprenticeship programs and ensure that students have access to diverse career opportunities. By addressing these issues and investing in scalable apprenticeship models, Indiana can better prepare its workforce for the demands of the future job market.

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