CA Invests in Apprenticeships in 2025

Pam Sornson, JD

There are many ways to build a workforce. In addition to structured educational programs, internships, and apprenticeships are also essential and valuable methods for finetuning workers to deliver precisely the right services and skills. In 2025, California’s government is investing $24.7 million in 65 different apprenticeship programs in the State’s most critical industries, giving both those companies and their future workforce a brighter, more financially stable future.

California’s Apprenticeship Innovation Funding (AIF) Program

In 2022, California introduced this new financial resource to increase its apprenticeship offerings across its many industries. In conjunction with the State’s Interagency Advisory Committee on Apprenticeships, the AIF assists organizations to scale and sustain their apprenticeship efforts.

Beginning in 2022, California allocated $135M towards the development and growth of these programs and has tasked the Departments of Industrial Relations (DIR) and its Division of Apprenticeship Standards (DAS) with their administration. In FY 2023-2024, $75M was allocated for the purpose and the Governor has announced that another $24.7M is available for FY 2024-2025. These ‘earn-and-learn’ pathways allow novice workers to learn the skills they need to sustain long-term employment and earn money while on the (training) job. The 2025 allocation is expected to support over 8,200 new positions, paying an average of almost $32.00 per hour.

Notably, the newly funded apprenticeships pop up across several industrial spheres, which have already been designated as key sectors for sustaining the State’s economic foundation, such as advanced manufacturing, education, healthcare, transportation, business services, and the ‘public sector.’

More Money = Bigger Strategy

Additionally, in November 2024, Governor Newsom introduced a draft of a new framework designed to guide the State’s workforce and apprenticeship investment strategy, the California Jobs First Economic Blueprint. While the full document will be released in 2025, its draft offers exciting information for potential workers and their future employers:

• The framework encompasses ten primary industrial sectors that are critical to maintaining the State’s economy. These industries currently employ millions of workers across the State and produce billions of dollars in annual revenues.
• Administered by the Community Economic Resilience Fund (CERF), these apprenticeship-focused projects pursue California’s ambitious climate and economic goals, which aim at making the State carbon-neutral by 2045. CERF is powered by a $600M investment intended to stimulate the development of well-paying jobs in low-carbon industries. In its planning phase, CERF leadership worked with 13 High Road Transition Collaboratives around the State, each of which was granted $5M to build out their individual roadmaps to economic success, depending on the attributes and assets located within their region.
• The framework’s Regional Investment Initiative (RII) ensures that no community is overlooked or left out. The recent pandemic and weather-related disasters revealed significant service gaps in smaller, more remote communities. This program is designed to provide them with better, more comprehensive services and support to build a stronger local community economy from within. It should also prevent the repetition of previous failures and ensure that these small locales can grow their own economies and compete with their state-based and nationally situated competitors. Currently, the RII is completing its planning stage and has launched pilot projects across the State.
• The blueprint also recognizes that growth comes from new avenues as well as existing resources. It divides its industry focus into four segments, each of which supports a unique niche within each industry:
• The ‘Strengthen’ Stage – Established and economically competitive entities gain resources to continue their outward expansion. Industries identified in this category include manufacturing, professional and financial services, transport and logistics, and tourism, to name just a few.
• The ‘Accelerate’ Stage – Businesses and industries in emerging sectors gain funding to grow their capital and infrastructure foundations. Included in this strategy are organizations working in the life sciences, aerospace and defense, clean economy, and high-tech sectors.
• The ‘Bet’ Stage – Innovation also gets a nod with funding opportunities offered to emerging entities that provide high strategic importance within their industrial sphere. Entrepreneurs and other forward-thinking business leaders can find support to develop their unique but as-yet unproven initiatives in these areas: carbon management, critical minerals, artificial intelligence, and the emerging ‘bioeconomy.’
• The ‘Anchor’ Stage – Foundational entities located ‘on the ground’ in each region also benefit from the plan. These enterprises include existing businesses providing foundational support for workers, including education, child care, health care, and infrastructure management.

The blueprint sets out not just the goals but also the pathways to achieving its vision and commitment to economic growth through workforce development.

The CCCCO Weighs In

California’s Community College Chancellor’s Office (CCCCO) plays an integral part in the design, development, implementation, and success of many of California’s apprentice programs, and it works as a partner to the State in its goal of training 500,000 apprentices by 2029. The CCCCO also faces significant challenges in providing information, direction, and support for its 1.9 million students and 116 colleges. Underrepresented populations, economically challenged communities, and a lack of sustainable jobs and employment are all issues that arise on virtually every campus each year.

However, the agency has made good progress in its apprenticeship drive, with help from companion agencies like Jobs for the Future (JFF). That organization recently released a 2023 report on the depth and breadth of the apprenticeship initiative across the State:

• The Division of Apprenticeship Standards (an element of the CA Department of Industrial Relations) reports that the number of registered apprentices grew 11% between 2018 and 2023, from 84,217 to 93,798.
• Manufacturing provided the most apprenticeship opportunities (growing by 473% over that term), followed by healthcare (400%), IT (45%), and barbers and cosmetologists (95).
Barriers to further growth include insufficient employer engagement and a lack of funding options, both of which will be addressed with this new channel of state support.
Employers and future workers are encouraged to explore their apprenticeship options to find their own path to economic security through apprentice opportunities.

As the new year looms, many are looking to find a fulfilling and lucrative future in an existing or emerging industry. California offers its residents many opportunities by focusing on apprenticeships as training and workforce development tools.

 

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