California funds apprenticeships to train 22,000 new workers for skilled trade jobs
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California is investing $25 million in apprenticeship programs that will train more than 22,000 workers for skilled trades. Governor Gavin Newsom announced the funding through the Employment Training Panel, which approved grants for 88 programs. This aligns with the state’s larger effort to build an inclusive labor force through public and private partnerships.
The grants expand access to earn-and-learn opportunities for populations often left out of high-wage industries, including women, veterans, individuals involved in the justice system and those moving from low-wage jobs or unemployment.
This effort supports California’s goal of training 500,000 apprentices by 2029. It follows a September 2024 funding round that approved $22.5 million to train 18,000 workers. Together, the investments signal a long-term strategy to expand workforce readiness.
Importantly, the funds are not drawn from the general budget. Instead, they come from the Employment Training Tax, paid by employers. This method ties workforce funding directly to employer participation, helping to align training with real labor needs.
Filling a labor gap with targeted trades training
The construction sector is a key focus of the new grants. In California, it contributes more than $156 billion in annual economic activity and employs close to 1 million people. Despite that, the industry faces persistent labor shortages as demand grows.
Many of the roles in construction require no more than a high school diploma. In fact, 12 of the 15 most accessible occupations in California for workers without a college degree are in this sector.
These grants enable providers to train more people in high-demand roles. As large public infrastructure and transportation projects ramp up, the need for trained workers outpaces the current supply. Apprenticeships help meet this demand by combining classroom learning with paid on-the-job experience.
Several of the programs receiving funds are located in high-growth regions such as Inglewood, where construction is accelerating. These areas need skilled labor urgently, and apprenticeships offer a structured path to meet that need.
A shift from degrees to skills: the rise of earn-and-learn models
This funding round is part of a larger shift toward skills-based training as an alternative to four-year degrees. The earn-and-learn model is gaining traction for its lower barriers to entry and immediate economic benefits.
Participants earn wages while gaining formal instruction, often without paying tuition. For many, that makes apprenticeships a practical route to long-term careers. The structure is also appealing for working adults who cannot afford to stop working to pursue training.
The program emphasizes inclusion. Many of the grants support outreach to groups underrepresented in skilled trades, such as women and communities of color. These efforts help diversify the labor force while expanding access to quality employment.
Younger workers entering the market can benefit as well. As older tradespeople retire, apprenticeships offer a way to transfer skills across generations and close workforce gaps.
Equity-driven workforce development and its economic ripple
The state’s focus is not limited to job creation. It includes measures to make the workforce more equitable. Apprenticeships are built around access, progression and outcomes, helping workers not just get hired but also advance.
Participants often see strong gains in income, job security and benefits. In fields like construction and manufacturing, those who complete apprenticeships can increase their earnings by 40 to 50 percent within five years. These gains feed back into local economies through spending and tax contributions.
The programs also provide support services, such as mentorship and child care, to help participants complete their training. These services can be critical for people balancing work and family responsibilities.
Workforce equity is no longer a niche issue. California’s approach places it at the center of economic development, showing that inclusion and productivity can advance together.
California’s apprenticeship strategy is built on performance and partnership. Unlike traditional education grants, which often support institutions, these grants go to training sponsors and are tied to job placement outcomes.
The use of the Employment Training Tax gives the state a self-sustaining funding source that grows with the economy. Employers are not just contributors; they are co-designers of the training, helping to shape curriculum based on real hiring needs.
This kind of model is attracting interest from other states. As the national conversation shifts toward job pathways that do not rely on four-year degrees, California’s program offers an example of how to scale training without sacrificing equity or efficiency.
Its full impact will take time to evaluate, but the structure is sound. Tying funding to workforce outcomes, emphasizing inclusion and involving employers from the start are practices that could apply well beyond California.
Sources
California Governor’s Office