Across the country, apprenticeships are being rediscovered as vital workforce strategies. In industries like healthcare, information technology, and advanced manufacturing—where talent shortages are especially acute—apprenticeships are helping fill gaps that traditional education pathways alone do not address. Expansion into healthcare and education, in particular, accelerated during the COVID-19 pandemic to address workforce shortages. And this spring, President Trump issued an executive order directing the Departments of Labor, Education, and Commerce to modernize workforce development systems and expand registered apprenticeship to serve more than 1M apprentices annually.
The national conversation often revolves around worker outcomes, but it’s also essential to consider the following question: what do employers themselves need to make apprenticeships work?
Their perspectives are critical, because without strong employer participation, apprenticeships cannot deliver on their promise. Drawing on Mathematica’s research with the Labor Department and several states, we can see apprenticeships not just through the lens of worker development but also through the experiences of the employers who sustain them. Their perspectives illustrate both the benefits that apprenticeships bring to businesses and the barriers that must be overcome for programs to scale.
What Employers Value in Apprenticeships
Employers consistently describe apprenticeships as a way to cultivate talent pipelines tailored to their specific needs. Rather than relying solely on external labor markets or educational institutions, they are able to develop workers from the ground up, ensuring a stronger fit between employee skills and organizational roles. For many, this early investment in shaping talent translates into higher retention and a workforce that is both loyal and better prepared for long-term success.
These benefits are especially powerful in sectors where vacancies are difficult to fill. A hospital system, for example, may use apprenticeships to train medical assistants who can transition into more advanced roles. A manufacturing firm may build a pipeline of machinists skilled in specialized processes. In both cases, apprenticeships help organizations respond to immediate labor market pressures while also securing the talent they need for the future.
Common Challenges Employers Face
But employers’ enthusiasm often runs into practical challenges. A Mathematica study of registered apprenticeships notes that many employers are still unsure how apprenticeship programs work or how to become involved. More than half of states surveyed reported that employers need help marketing these opportunities to potential candidates, while others stressed the difficulty of reaching businesses in rural or underserved areas. Nearly half of states said employers worry about the costs of training or about investing in workers who might later be recruited away.
Smaller employers, in particular, struggle with the administrative side of apprenticeship participation. The paperwork involved in registration and compliance can be daunting for businesses without dedicated HR staff. As a result, even when employers see the potential value of apprenticeships, the barriers to entry can keep them on the sidelines.
Strengthening Employer Participation
Despite these challenges, there are promising models that show how employer participation can be strengthened. Mathematica’s issue brief, “Employer Engagement Strategies in Regional Partnerships,” found that programs were most successful when employers were engaged early, co-designing curriculum and program expectations so that training aligned directly with business needs. Intermediary organizations played a crucial role in easing administrative burdens, making it feasible for smaller firms to join. And when financial incentives such as wage subsidies or tax credits were introduced, employers felt more confident about the return on their investment.
Another key takeaway from our state expansion grant report is the power of employer champions. Hearing directly from peers who have successfully launched apprenticeships is one of the most effective recruitment tools. As one respondent put it, “Nothing sells it better than one business telling another business about it.” When employers lead referrals and recruitment, they build trust with other businesses. The Labor Department has recognized this dynamic through its Apprenticeship Ambassador program, which elevates employer voices to encourage broader adoption.
Making Apprenticeships Work for Employers
These insights point to several practical ways workforce leaders and policymakers can strengthen employer participation in apprenticeships. Streamlining registration and compliance processes can remove some of the most immediate barriers for employers, and intermediaries can make it easier and more practical for employers to participate. Expanding outreach and technical assistance—particularly to small and mid-sized firms that may lack awareness or capacity—can broaden participation. Sector- or regionally-focused networks could provide the peer-to-peer insights to help smaller businesses make the leap and find partners for multi-employer models. Financial incentives can help reduce perceived risks, while data-driven tools can ensure employers are matched with program supports tailored to their industry’s specific needs.
By centering employer voices, policymakers and intermediaries can create conditions where apprenticeships are not only accessible but also sustainable.
Samina Sattar is a principal researcher at Mathematica, Ryan Ruggiero is a researcher at the organization, and Kirsten Miller is senior manager of outreach and dissemination.