Multiverse and the Burning Glass Institute release new research identifying the opportunity to close skills gaps through apprenticeships, which could move hundreds of thousands into the middle class
NEW YORK, Nov. 13, 2023 /PRNewswire/ — Today, Multiverse and the Burning Glass Institute (BGI) released a comprehensive new workforce study of the US labor market that explores the growth potential of apprenticeships and talent pools as a source for a wide range of professional roles in the US.
The report – Untapped Potential: How new apprenticeship approaches will increase access to economic opportunity – identifies 830,000 new apprenticeship opportunities that could open up annually and highlights the roles and types of workers who could fill them. By mapping apprenticeship-ready occupations in the US, this report identifies the pathways that workers can follow to move from various occupations across industries – which could result in $28.5 billion in higher earnings each year – creating pathways to higher wage roles for workers across America.
“Apprenticeships have the potential to galvanize the US economy by providing pathways that can be expanded to millions of workers who could apply their skills to the roles of the future,” said Euan Blair, CEO and Founder of Multiverse. “The inability for skilled-workers to break into sought-after careers and the financial strain placed on employers needing to attract, retain and train talent can be addressed through the adoption of on-the-job training – which is a win for the company, worker, and economy at large.”
Mapping the Workforce Landscape
According to the report, there are nearly 128 million people in the US workforce who stand to gain from new on-the-job training opportunities; this includes workers who are underemployed, stuck in their jobs with limited options for advancement or mobility, or whose progression is gated behind the need to acquire new or more relevant skills to advance in their fields.
Multiverse and BGI identified four cohorts of note:
- 36 million high-churn, low-wage workers without bachelor’s degrees;
- 10.6 million career starters without bachelor’s degrees;
- 12.8 million underemployed college graduates; and
- 68 million mid-career workers who are seeking a chance for better pay.
Collectively, these four populations of workers constitute 70% of the entire US workforce.
The Apprenticeship Opportunity in the US
Despite outdated narratives around apprenticeships, they are no longer just about young people learning a skilled trade on the job. As workplaces and careers become more complex, apprenticeships are becoming a powerful tool for employers to attract talent and fill their skills gaps, and for workers to achieve upward mobility in their careers. According to the US Department of Labor (DOL), over the last 10 years, active registered apprenticeships have grown by 106% – with more than 600,000 total this year.
In fact, in a review of 332 million job postings since 2014, the report noted that over the last five years, there has been a 6.5x increase in the frequency of using terms like “upskilling, reskilling, and on-the-job training” in job ads to help attract talent.
Identifying the parameters of what qualifies as an upwardly mobile apprenticeship opportunity – such as good wages, demand and growth, accessible training pathways, and no strict occupational licensing or universal degree requirements – Multiverse and BGI found 149 “target occupations” in the US, 20 of which already boast substantial and growing numbers of apprenticeship opportunities. Interestingly, the report also noted that the jobs that are most apprenticeship-ready tend to require more skills than other occupations, and often have limited access to workers who did not graduate college due to degree requirements.
The average job advertisement for an apprenticeship-ready occupation lists 11 skills; for all other occupations, the average is 7 skills, reflecting the importance of skilled workers to employers.
“The fact that the most apprenticeship-ready occupations require more skills highlights the role and importance of on-the-job training,” said Asha Aravindakshan, US General Manager of Multiverse. “Therein employers will find the benefits of apprenticeships. The apprentices will learn these skills on the job alongside their employees and demonstrate a mastery and knowledge of the skills necessary to launch a great career.”
Upskilling the Experienced Workforce
The research also focused on the upskilling of the 68 million mid-career workers whose onward progression is gated by limited upward mobility or more advanced skill needs – but upskilling offers opportunities for these workers to advance in their careers. This group presents a special case because their need is often for upskilling (rather than reskilling) within an occupation. For those in this group, the emphasis is to stay in the same occupation while advancing and gaining new skills, which leads to greater job responsibilities and higher pay.
Strengthening the Economy through Alternative Career Pathways
While apprenticeships have grown in both interest and adoption in the US, they are still not a mainstream part of the American workforce. In comparison, the UK has a well-established apprenticeship system that has fueled its workforce and its economy for decades. According to an analysis of the British apprenticeship system, qualified apprentices in 2019 were projected to add £7 billion to the economy by the end of 2029. In the last year, Multiverse found that their 10,000 apprentices across 1,000 employer partners had created $669 million in bottom-line benefits through their work.
Using the UK’s “mature apprenticeship” system as a model, the report predicts that an apprenticeship-mature US workforce would host over 830,000 new apprenticeship opportunities per year. Not only could this represent $28.5 billion annually in wage increases to the workers pursuing these apprenticeship pathways, but it would also open up opportunities for workers who are disproportionately blocked by career barriers like the paper ceiling.
“We know that with Boomers retiring, more people sitting on the sidelines of the labor market, and big economic shifts in the wake of the pandemic – the workforce we have isn’t always the workforce we need,” said Matt Sigelman, President of the Burning Glass Institute. “Apprenticeships can be a powerful mechanism for unlocking worker potential and bridging the gap between workers yearning for opportunity and businesses starving for talent.”
Advancing Equity and Diversity through Apprenticeships
Research confirms that the workers who are most affected by being stuck in high-churn, low or unimproving wage work, or underemployment are disproportionately: women, Black and Hispanic workers without a degree. As businesses continue to focus on attracting and retaining diverse talent and improving equity and inclusion in their ranks, apprenticeship programs can create a strong pipeline of qualified and underrepresented talent who are proven to be effective on the job.
About Multiverse
Multiverse is on a mission to create a diverse group of future leaders by building an outstanding alternative to college and corporate training. They offer apprenticeships to a diverse pool of young adults and those looking to reskill. Multiverse helps 1,000 organizations to embrace digital transformation, close skills gaps and develop a diverse talent pipeline. Apprentices benefit from individualized coaching, applied learning, and a community of social, networking and leadership opportunities to exceed the best of the university experience.
Founded in the UK in 2016, Multiverse launched in the US in January 2021.
For more information, visit www.multiverse.io
About Burning Glass Institute
The Burning Glass Institute (BGI) believes that everyone deserves meaningful work and the chance to move up. A fully independent non-profit, they advance data-driven research and practice on the future of work and on the future of learning. The Institute works with educators, employers, and policymakers to develop solutions that build mobility, opportunity, and equity through skills. Through their expertise in mining new datasets for actionable insight, the Burning Glass Institute’s discourse-shaping research draws attention to pressing problems and frames the potential for new approaches. Through project-based engagement and collectives, BGI puts ideas into practice, bringing forward solutions that are high-impact and replicable.
Building on a legacy of breakthrough innovation in labor market analytics, the Institute serves as a trusted source bridging industry, educators, policy makers, and workers. As rapid change increasingly challenges employers and workers alike, the Institute delivers insightful analysis of labor market trends and develops innovative models for economic mobility and workforce equity.
SOURCE Multiverse
