As rapid technological change reshapes the economy, the United States faces a growing shortage of skilled workers in the tech sector, alongside persistent challenges in recruiting talent from underrepresented communities. This brief explores how registered apprenticeships can disrupt traditional hiring practices and advance equitable recruitment in tech. Drawing on workforce and apprenticeship data, and insights from participants in Urban Institute’s Small and Medium Business Tech Apprenticeship project, the findings highlight how intentional recruitment strategies can improve diversity and develop a strong talent pipeline in the tech sector.

Why This Matters

Critical vulnerabilities in the workforce threaten the tech industry’s ability to sustain growth and foster equity. With over 300,000 annual openings expected in the next decade, conventional talent pipelines fall short of meeting the industry’s demands for skilled workers, all while systemic barriers continue to limit access for people of color, women, and nontraditional candidates. Small and medium businesses (SMBs)—which account for 99.9 percent of all US businesses and lead job creation—are uniquely positioned to address these challenges. But a majority of SMBs report difficulty in hiring skilled talent as their top concern. Registered apprenticeships offer a powerful tool to build in-demand tech skills while expanding workers’ access to opportunity.

What We Found

Our findings show that recruitment challenges are not driven by a lack of interest among diverse candidates, but from structural, informational, and logistical barriers that shape who learns about apprenticeships and who can realistically pursue them. These barriers can inadvertently narrow applicant pools and limit the effectiveness of apprenticeship programs. 

SMBs can address these challenges and improve equity through intentional, program-level recruitment strategies. We recommend four key strategies: 

1. Create a pipeline of applicants through strategic partnerships with education and community partners to expand awareness of tech career opportunities among underrepresented talent;
2. Use intentional screening methods that mitigate bias and promote equity;
3. Support applicants’ readiness through short-term training programs that build tech skills; and
4. Improve representation across all organizational levels to reflect the communities being served.

Together, these strategies can help SMBs recruit more equitably while developing a resilient and diverse tech workforce.

How We Did It

This brief draws on analysis of data from the Registered Apprenticeship Partners Information Database System (RAPIDS) at the project, state, and national levels, as well as interview and focus group data collected throughout the three-year Small and Medium Business Tech Apprenticeship project. Urban Institute’s team interviewed 12 apprenticeship program sponsors and conducted focus groups and interviews with 25 apprentices in North Carolina and South Carolina to learn from their perspectives about challenges experienced throughout the apprenticeship recruitment process and successful strategies for building a skilled and inclusive tech workforce.