Apprenticeship is a worthwhile investment The Canadian Apprenticeship Forum – Forum canadien sur l’apprentissage (CAF-FCA) has conducted a landmark study that examines the Return on Apprenticeship Training Investment. Previous studies in this area focused only on cost and shied away from the question of benefits.The CAF-FCA’s study confirms that benefits generated by apprentices outweigh the training costs. Highlights: • On average, for each dollar invested in an apprentice, a benefit of $1.38 accrues to employers or a net return of $0.38; • Apprentices begin to generate net benefits for employers by the end of the second year or earlier; • Employers noted important qualitative or non-monetary benefits associated with apprenticeship training – hiring apprentices ensures that an organization has skilled labour and a lower turnover rate; • Employers also believe their journeypersons benefit from training an apprentice; • Employers feel “homegrown” journeypersons tend to be more productive than an externally hired journeyperson. The findings are critical: Given the anticipated shortages of skilled trades workers in Canada, an understanding of the barriers to hiring and training apprentices is critical. In a recent Canadian Apprenticeship Forum – Forum canadien sur l’apprentissage (CAF-FCA) study, many employers cited ‘cost’ as a barrier to hiring and training an apprentice. 1 (1 Accessing and Completing Apprenticeship Training in Canada – Perceptions of Barriers Report – Canadian Apprenticeship Forum – Forum canadien sur l’apprentissage (CAF-FCA), 2004) In addition, another study revealed that only 18% of employers participate in apprenticeship programs.2 (2 Employer Attitudes and Perceptions of Apprenticeship Study – Canadian Apprenticeship Forum – Forum canadien sur l’apprentissage (CAF-FCA) and Skills/Compétences Canada® (S/CC), 2006) If employers and young people do not increase participation in apprenticeship programs employers may lack the necessary qualified tradespeople to sustain their businesses, and Canada may not be prepared to meet the demand of a global economy. • Over 430 employers from across Canada participated in the study. • The trades selected were: Automotive Service Technician Bricklayer Carpenter Construction Electrician Cook Heavy Duty Equipment Mechanic Industrial Mechanic (Millwright) Insulator Machinist Mobile Crane Operator Motor Vehicle Body Repairer Refrigeration and Air Conditioning Mechanic Sheet Metal Worker Sprinkler System Installer; and Tool and Die Maker Findings are valid: Employers and economists from across the country reviewed and validated the study findings. Responses were very favourable. They found that: • The methodological approach was appropriate; • The scope of the study far exceeds any previous research in Canada on this topic; • Employers agreed that on average, apprentices generate a positive return to their organization over the apprenticeship period. Funded by the Government of Canada’s Sector Council Program