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Are Apprenticeship Programs Federally Subsidized?

Are Apprenticeship Programs Federally Subsidized? thumbnail
The federal government subsidizes many apprenticeships.

Until the 20th century, apprentices were contracts between private citizens--trading cheap labor for training, according to Economic History. Today, apprenticeships are mostly funded by the federal government.

  1. History

    • America did not start federal funding for apprenticeships until the passage of the Smith-Hughes Act in 1917. Entry into World War I and the shortage of labor that resulted spurred Congress to approve this bill, according to Economic History.

    Significance

    • The Department of Labor funds apprentices through its Employment and Training Administration division. In 2007, 217,000 people entered the program and 35,300 graduated, according to the DOL website. Overall, 468,000 apprentices work in the U.S.

    Private Apprenticeships

    • All legitimate apprenticeships adhere to standards set forth by the Bureau of Apprenticeship and Training or a similar state apprenticeship council, according to the Department of Housing and Urban Development. Construction companies are a major source of privately funded apprenticeships, contributing $250 million toward them in 2009.

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References

  • Photo Credit maréchal ferrant au travail image by LAURENT VICENZOTTI from Fotolia.com

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