How States Are Combating AI Job Threats with Apprenticeships and Career Technical Education

Workforce development is a perennial topic for state and local policymakers. And for a workforce that has suffered the ups and downs of the Great Recession and the pandemic, workers now face the potential upheavals of artificial intelligence’s impact on the workforce. States are consistently competing to attract new industries and companies to come to their states, but face major challenges when there is a shortfall of trained workers to fill these jobs.

But workforces take time to train, and adjustments to economic conditions aren’t always quick. Policymakers rely on nudging the workforce with apprenticeships, career and technical education, and workforce development grant funding to help fill these gaps. This year, state lawmakers have introduced nearly 250 bills related to apprenticeship and 185 bills related to career and technical education. States are not only working to train and expand their workforces in high-demand industries, but are also targeting untapped talent in their state through early career opportunities in the K-12 education system. Increased demand for a more skilled workforce, coupled with rising costs of postsecondary education, has led to renewed popularity in apprenticeships, vocational schools, and career and technical education opportunities.

State Apprenticeship Programs Have Grown Over Time

Apprenticeships offer on-the-job training, a steady income, recognized certifications, and the skills to secure employment upon completion of the program.

Leading States Drive National Apprenticeship Expansion

This year, there are more than 670,000 registered apprenticeships in the U.S., with states like California, Texas, Ohio, and Indiana leading the country. This is an 88% growth from the total number of apprenticeships since 2015, demonstrating this recent priority shift in workforce strategy. This year, 25 states enacted legislation related to apprenticeships, with states focusing on industries such as technology, plumbing, electrical, construction, and building inspection.

State Legislative Incentives Make Apprenticeships More Accessible

Louisiana enacted legislation (LA HB 533) providing additional incentives for the employment of apprentices, interns, and youth workers through tax credits. In 2019, Texas established (TX HB 3260) the “Texas Industry-Recognized Apprenticeship Programs Grant,” and this year, lawmakers added additional clarifications on reimbursement funding to individuals who reach milestones in their on-the-job training. These tax credits and grant programs make apprenticeships more accessible for both employers and apprentices.

Career and Technical Education Receives Federal and State Investment

Career and technical education (CTE) focuses on teaching industry standards, technical proficiency, and workplace readiness to prepare students for their desired fields. These programs provide employers with ample skilled graduates who are ready to be hired and fill vacant roles in trade industries. In 2018, Congress enacted the Strengthening Career and Technical Education for the 21st Century Act (Perkins V), bringing $1.4 billion annual federal investment in career and technical education. Many states have gone even further to provide additional opportunities for students and fill funding gaps.

States Expand CTE Access to Younger Students

This year, state lawmakers enacted 28 bills related to career and technical education. Lawmakers in Washington enacted legislation that allows sixth graders to enroll in exploratory career and technical education courses, allowing these students to be introduced to programs at an earlier age in order to be more informed about future career pathways. Finding ways to expose students to non-traditional career paths is a priority that many states are working towards. Missouri enacted legislation to establish the “Career-Tech Certificate Program Fund” to reimburse the cost of tuition, books, and fees for two-year vocational or technical school.

Key State Policy Goals for CTE Programs

The main policy goals addressed by states have been increasing grant programs/funding, providing schools and students with a list of attainable industry-recognized credentials, expanding dual enrollment, conducting data collection, and strengthening CTE teacher staffing. With the rising cost of tuition and fees for colleges and universities, more students will likely consider career pathways that involve career and technical education.

AI Impact Drives Future Demand for Skilled Trades Training

Looking ahead, there is a strong future for CTE and apprenticeship programs. With the rise of AI and predictions of traditional early career level jobs being reshaped or replaced, states and students across the country are likely to concentrate on career pathways in skilled trades. These professions are least vulnerable to AI since they require skilled hands-on problem-solving, adaptability, and manual labor. The appeal for more traditional “blue collar” roles will likely increase as it offers financial stability and lacks the burden of student loans. Lawmakers and schools may face a heightened demand for more opportunities in career and technical education and apprenticeship programs.

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This article appeared in our Morning MultiState newsletter on September 16, 2025. For more timely insights like this, be sure to sign up for our Morning MultiState weekly morning tipsheet. We created Morning MultiState with state government affairs professionals in mind — sign up to receive the latest from our experts in your inbox every Tuesday morning. Click here to sign up.