Adobe Stock / Monkey Business

The U.S. Department of Labor published a final rule to aid the expansion of apprenticeships in the United States by establishing a system for advancing the development of high-quality, Industry-Recognized Apprenticeship Programs (IRAPs).

“Apprenticeships are widely recognized to be a highly effective job-training approach for American workers and for employers seeking the skilled workforce needed in today’s changing workplace,” Secretary of Labor Eugene Scalia said in a news release announcing the new rule. “This new rule offers employers, community colleges, and others a flexible, innovative way to quickly expand apprenticeship in telecommunications, health care, cybersecurity, and other sectors where apprenticeships currently are not widely available.”

IRAPs are apprenticeship programs recognized by a third-party entity under standards established by the Department of Labor in the new rule. Through such programs, individuals can obtain workplace-relevant training and skills that result in an industry-recognized credential. IRAPs are typically operated or developed by entities such as trade and industry groups, corporations, non-profits, and educational institutions.

Under the Department of Labor's final rule, trade associations, educational institutions, state and local government entities, or a partnership of these entities may become a Standards Recognition Entity (SRE) that sets standards for training, structure, and curricula for recognized apprenticeship programs in relevant industries or occupational areas.

The new rule takes effect on May 11, 2020.

While the new rule extends to apprenticeships in the telecommunications, health care, and cybersecurity sectors, it omits the construction industry. The National Association of Home Builders (NAHB) said at a time when the residential construction industry is suffering a "severe labor shortage," the Department of Labor missed a "golden opportunity."

“With the home building industry suffering a chronic labor shortage that is resulting in higher construction costs, increased home prices and lower economic growth, it is disappointing that the Labor Department’s final apprenticeship rule failed to include the construction sector,” NAHB chairman Dean Mon said in a statement from the organization. “This is a missed opportunity at a time when there are 239,000 unfilled construction jobs and an acute shortage of skilled residential construction workers.”