Apprenticeship Improvement Act of 1986 - Amends the National Apprenticeship Act (the Act) to direct the Secretary of Labor, in promoting labor standards for the welfare of apprentices, to ensure that no apprenticeship program discriminates in admission or employment against any individual because of age. Directs the Secretary to establish and maintain a national information collection system for apprenticeships and apprenticeship programs. Requires the Secretary to assure that, from the amounts appropriated to carry out the Act in each fiscal year, at least one percent shall be available to establish outreach recruitment activities to increase the participation of women and minorities, handicapped individuals, displaced workers, and disadvantaged individuals in the apprenticeship programs authorized under the Act. Establishes the Bureau of Apprenticeship and Training in the Department of Labor, under the direction of the Administrator of the Bureau of Apprenticeship and Training. Transfers to the Bureau all functions of the Assistant Secretary for Employment and Training Administration with respect to the promotion of labor standards of apprenticeship, including research, information, and publications. Transfers to the Bureau all functions related to apprenticeship, including appropriate administrative and program support services, together with necessary personnel and related funds. Authorizes the Secretary to appoint necessary employees for the administration of this Act. Limits the authority to conduct reductions in force within the Bureau of Apprenticeship and Training of the Department of Labor. Directs the Secretary to report to the Congress within six months after the enactment of this Act on whether the apprenticeship program conducted by the Department of Labor under the Act complies with regulations governing equal opportunity. Requires such report to include: (1) a detailed description of activities carried out by the Department to ensure compliance; (2) a list of compliance reviews undertaken by the Department; and (3) a description of the sanctions imposed as a result of the compliance reviews.