I can't speak to the virtue of merging the two departments, though I'd be leary of another government colossus.
But in so far as there were additional or more accessible apprenticeship opportunities, I think that would be very laudable.
I'm not, however, at all certain that would address income inequality in a large way.
As you have pointed out there are fewer blue collar jobs, especially low skill, but some higher skill as well.
Automation is leading to fewer numbers with each passing year.
There will still be plumbers etc. But how many more does the U.S. need vs what is the case now?
I have no idea, but off-hand I'm thinking 5,000 more plumbers, 500 of those in any given year is unlikely to move the needed on income inequality all that much.
I would suggest that there needs to be both more access to higher skill/wage employment, which means better primary/secondary education, and no undue barriers to tertiary [[post-secondary) education.
As you also note, some people are not academically inclined, and its likely their future rests of what are seen as lower skill jobs, which aren't at immediate danger of automation.
Those would be customer-service jobs in retail to some degree [[cashiers will be automated out to a large degree, but 'help' isn't that likely to be.
Similar jobs in call centres and the like will be around a bit longer too. Those jobs need to pay better.
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