Challenges and Strategies for Expanding Apprenticeships in the St. Louis Region

Apprenticeship is an age-old practice in which a trainee gains relevant skills while working on the job under guidance from a highly skilled mentor. The formal apprenticeship model in the U.S. began with the passing of the National Apprenticeship Act of 1937. Apprenticeships usually have four components: learning derived from on-the-job (OTJ) training, classroom or other instruction to develop specific skills to prepare the apprentice for the job; mentorship; graduated wages from apprentice to full-time employee; and a job beyond the term of apprenticeship.This is based on the chapter “Can Pay for Success Scale Apprenticeships in the U.S.?” in the book Workforce Realigned, Vol. II.

Apprenticeships have seen a lot of growth in recent years. Nationally, the number of active apprenticeships grew by 77% between 2016 to 2025. The types of occupations hosting apprenticeships have also increased. Construction trades continue to dominate, but apprenticeship has expanded to other occupations in the health care and technology sectors. However, the number of active apprentices as a percentage of labor force remains low at 0.41% in 2025.The estimates for growth in apprentices were calculated by co-author Nishesh Chalise using data from the Registered Apprenticeship Partners Information Database System (RAPIDS). In other countries, such as England, Germany and France, this number ranges between 2% and 3%.

Understanding the Role of Apprenticeship and the Challenges It Faces

There is a concerted effort underway to grow the number of apprentices in the U.S. by appealing to two key needs:

Blog post co-author Nishesh Chalise (standing) helps facilitate a discussion at a St. Louis Fed event on expanding apprenticeship programs.

• For workers, apprenticeships can provide a pathway to higher wages without incurring significant student debt.
• For employers, apprenticeships can help address skills shortages.

In this context, it is important to understand what has been working and what challenges lie ahead for scaling up apprenticeships. To deepen our understanding of the apprenticeship landscape, the St. Louis Fed recently held a roundtable with representatives from nonprofits, government agencies, philanthropy, community colleges and employers in the St. Louis region. This article highlights some of the key themes shared at the roundtable, which also included representatives from Missouri’s Department of Higher Education and Workforce Development.

Apprenticeship Growth in Missouri

Missouri increased its number of active apprenticeships by 89% between 2015 and 2025. The latest data show the state has 22,444 active apprentices, making it the seventh highest in the country. When you consider the total civilian labor force, Missouri ranked fourth in 2024. The state received $3.1 million dollars through the Department of Labor’s State Apprenticeship Expansion Formula (SAEF) grant program, which will further support this growth.

Prospective apprentices participate in “bio boot camp,” a biotechnology pre-apprenticeship program hosted by St. Louis Community College. Missouri increased its number of active apprenticeships by 89% between 2015 and 2025.

Photo courtesy of BioSTL

Increasing Completion Rate Is a Challenge

It was noted that much work is needed to increase the rate at which apprentices successfully complete their training. In 2024, the completion rate for Missouri was 48.2%, which was slightly above the national average. Research suggests that whether an apprentice completes a program could be impacted by many factors, including access to child care, quality of training instruction, length of the apprenticeship, and even the culture at the organization or the occupation itself.For a review of research on drivers of completion rates as well as strategies for improvement, please see this American Institutes for Research publication, Improving Apprenticeship Completion Rates (PDF).

Employer Buy-in Remains a Crucial Element

Employers play a significant role in driving apprenticeship success. There was broad agreement that workforce agencies need to use more employer-friendly language and reduce administrative burden for employers. A participant shared that it takes anywhere between nine and 15 months to get an employer onboard. A participant also shared that they often cite the typical employer’s return on investment is $1.44 for every dollar spent, which is an estimate based on a study evaluating the American Apprenticeship Initiative (PDF). Instead of a national estimate, participants suggested developing support materials highlighting the value of apprenticeship programs with Missouri-specific estimates for retention rates and ROI would be more compelling for employers.

Role of Intermediaries in Reducing the Burden for Employers

Intermediaries are organizations that support the design and implementation of registered apprenticeship programs. Community colleges, community-based organizations and workforce boards are a few examples of intermediaries. They play a critical role in taking the administrative burden off so employers can focus on what they are good at: providing on-the-job training and mentorship. This would especially help small businesses that do not have the capacity to take on further administrative work. Despite their critical role, intermediaries are in short supply in the region, according to participants.

Identifying “Apprenticeable” Occupations

The construction industry has driven much of the success for apprenticeships in Missouri and elsewhere. With 48% of apprenticeships, construction continues to be dominant. However, apprenticeships have seen growth in other industries like health care and social assistance. For example, in 2016 there were no apprentices in the health care sector. In 2025, 5.6% of apprentices in the state were in that sector. Participants pressed for identifying new occupations for apprenticeships to expand, especially in more technical fields that can provide greater economic mobility for workers.

Considerations for Workers with Different Expectations, Needs

Participants emphasized a need for additional considerations for some workers, including young adults, dislocated workers and formerly incarcerated people. For example, apprentices who are young adults may have different expectations in terms of flexible schedules or length of stay with single employer. Those reentering their communities with a criminal record will need workforce development organizations to communicate to firms about the benefits and opportunities of being a second-chance employer. These workers may also need additional wraparound services like housing assistance, transportation and clothing to support the transition into the workforce. Guidance to employers on navigating these differences could help with how apprentices experience their training, their perception of the occupation and their overall success.

What Is the Path Forward?

Participants at the roundtable recognize apprenticeships can be a powerful tool for building economic mobility and addressing critical skills gaps. They support the goal of continued growth of apprenticeships but recognize the constraints. They identified several needs, which include creating buy-in among employers, developing intermediaries to support the work, addressing completion rate for apprentices, focusing on untapped labor pools such as formerly incarcerated people, and leveraging the state’s data systems (e.g., P20W data systems, which link preschool/early childhood through K-12 education, postsecondary education and training and the workforce) for relevant analysis. Addressing these challenges through partnerships and clear communication of the value of apprenticeship programs is necessary for expansion.

Notes

1. This is based on the chapter “Can Pay for Success Scale Apprenticeships in the U.S.?” in the book Workforce Realigned, Vol. II.
2. The estimates for growth in apprentices were calculated by co-author Nishesh Chalise using data from the Registered Apprenticeship Partners Information Database System (RAPIDS).
3. For a review of research on drivers of completion rates as well as strategies for improvement, please see this American Institutes for Research publication, Improving Apprenticeship Completion Rates (PDF).