Can We Develop Enough Skills for a Robust Manufacturing Industry?

Does the U.S. face a skills gap limiting growth and incomes? Manufacturers often report weak skills but the question is controversial among economists. Many analyses deal only with academic skills and too often fail to cover the level and quality of occupational skills. Moreover, focusing on existing jobs ignores the role that skills can play in upgrading the mix of jobs in the economy. For example, countries that emphasize apprenticeship training retain a relatively high share of employment in manufacturing. This article examines the rationale for and feasibility of expanding apprenticeship in U.S. manufacturing. After describing apprenticeship’s cost for workers, employers and the government, the article shows how other approaches to expand apprenticeships can successfully upgrade skills and jobs.