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Using Promising Models to Fulfill Occupational Licensure Requirements

Co-authored by Kyle Doran, a Director at Social Finance.

In any given state across the country, individuals trying to improve their own economic wellbeing face a complex workforce training and licensure system. Imagine Andy, a person who wants to become a licensed heating, ventilation and air-conditioning (HVAC) contractor, for example. Based on an average of the requirements across 35 states, in order to work as an HVAC contractor, he must first gain over 1,000 cumulative days of experience and training, pay almost $400 in fees and pass two exams. This is a busy time for Andy, and in part due to his participation in this HVAC training, his income is much lower than prior to the program. Without full-time employment and the wages that come with it, transportation, childcare and other expenses become even more of a hardship, and he’s faced with the difficult decision of weighing the cost of a training program and expenses for these core necessities against the ultimate benefit of a more promising career.

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Apprenticeships: Immigrants with Work Authorization

Immigrants comprise approximately one in six workers in the United States. Many states, including California and Missouri, provide avenues for immigrants to earn occupational licenses. These avenues allow states to fill labor shortages in certain occupations and keep skilled in-state workers. However, many immigrants still face barriers to licensure that may prevent them from entering the workforce. Some immigrants may face a barrier understanding unfamiliar technical language in the licensing process. Immigrants also are more likely to face financial barriers that make it more difficult to complete the licensing process, which usually involves several fees.

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Apprenticeships: An Alternative Pathway to Licensure

Overview

Apprenticeships, an “earn while you learn” program with on-the-job training for future practitioners of a trade or profession, are an increasingly available pathway toward licensure in several states. According to DOL statistics, 94% of those who complete an apprenticeship program maintain employment and earn an average salary of $70,000. With such success stories, there has been a 128% increase in new apprenticeships since 2009 and 12,300 new apprenticeship programs created in the last five years. In 2021, numerous bills about apprenticeships and apprenticeship programs have been introduced in state legislatures across the country.

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