Youth employment programs, employer involvement and vocational training in Germany

Werner Eichhorst, IZA

OECD LEED 12th Annual MeetingCreativity, Jobs and Local Development

Venice,18th April 2016

Overview

1. Introduction2. The German training system3. Preparatory Schemes4. ALMP measures 5. Employer initiatives6. Conclusion

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Introduction Transition process from education to work strongly shaped by

institutions (public authorities, employers, business associations) Vocational education system in Germany strongly important Relatively smooth transition for young people Employers are systematically involved Apprentices e.g. from the craft sector are mainly supported by SMEs Provide dual vocational training, partly fund the system and have a

strong influence on the development of curricula and examinations General trend towards higher education provides more options to

continue academic training after obtaining a vocational degree Major initiatives are trying to tackle the issue of vulnerable young

people Different ALMPs (preparatory training schemes, employer-led

initiatives) are concerned

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The German training system Training system has a long tradition in Germany A relatively large share of apprentices in the past Development of apprentices remained relatively constant in the 1990s But: Number of apprentices and students drifted apart in the early

2000s At present, number of new students and new apprentices are almost

equal German dual training system combines practical on-the-job training

with rather theoretical education in vocational schools It is guaranteed that the apprenticeship and its certificate are

recognized throughout Germany thus ensuring labor mobility across regions

Dual vocational training system is based on the voluntary involvement of the employers

Inter-company vocational training centers contribute to ensuring the ability of SMEs to provide VET and support their competitive capability

4

The German training system

5Source: WZB (2014) 

Pathways into and within the German VET system and tertiary

The German training system

Vocational training share in upper secondary education, 2013

6

Switzerla

nd

Denmark

Germany

Austria

United K

ingdom

Hungary

Norway

Luxembourg

Iceland

France

Finland

Czech

Republic

Slovak Republic

Belgium

Israel

Sweden

Estonia

Italy

Australia

Chile

Ireland

JapanKore

a

Mexico

Netherla

nds

New Zealand

Poland

Portugal

SloveniaSpain

Turkey

0

10

20

30

40

50

60

70

80

School and work-based vocational programmes Vocational / professional programmes

Source: OECD Education at a Glance

 

The German training system

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Source: Federal Institute for Vocational Training (BIBB)  

Micro enterprises (<10 EE) Small enterprises (<50 EE) Medium-sized enterprises (<250 EE)

Large-scale enterprises (>=250 EE)

0

20

40

60

80

12.90

44.70

67.60

83.20

6.00 6.00 5.30 4.70

training companies apprentice

In %

Participation firms by size, 2013

The German training system

Top five apprenticeships in 2014 in Germany for males and females

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Total 1 358 550 100 Female 520 692 100 Male 837 858 100

Office clerk 1. 75 543 5,6 Office clerk 1. 56 718 10,9 Motor vehicle

mechatronics 1. 60 738 7,2

Motor vehicle mechatronics 2. 62 913 4,6 Medical

assistant 2. 37 116 7,1 Industrial mechanic 2. 44 688 5,3

Retail salesman 3. 61 416 4,5 Retail

salesman 3. 33 324 6,4 Electronics technician 3. 34 329 4,1

Industrial clerk 4. 51 885 3,8 Industrial

clerk 4. 31 440 6,0

Mechanic for sanitary,

heating and air

conditioning

4. 31 272 3,7

Industrial mechanic 5. 47 394 3,5 Dental

assistant 5. 29 835 5,7 Retail salesman 5. 28 092 3,4

Source: Statistisches Bundesamt (2015)

Preparatory Schemes No formal minimum requirement for starting dual vocational education Not all young people interested in vocational training have easy

access to an apprenticeship Vulnerable youths face major barriers in entering the regular

vocational training system Several approaches are initiated to overcome this drawback of the

system Possibility of a pre-vocational training year („Berufsvorbereitungsjahr“) In Germany, possibilities to bridge the time between school and

employment are offered (state- funded civic engagement program like „FSJ“ (voluntary social year) or state- funded voluntary programs like „BFD“ (federal volunteer service), „FÖJ“ (voluntary ecological year) and last but not least „FWD“ (voluntary military service))

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Customized Placement of Trainees in Enterprises (PV) Cooperation between employers and institutions providing external

vocational training should be increased Regions with high degrees of mismatches should be supported by

additional external vocational training Federal Ministry for Economic Affairs and Energy (BMWi) introduced

the aid program PV for SMEs, especially of craft and service sector, to obtain suitable young talents for dual vocational training

Intermediaries are hired, adopt the role of a “headhunter“, to provide the SMEs with advisory and agency services, aiming to achieve a better “matching“

In medium- to long-term perspective, PV funding program reaches the target group of SMEs; Craft enterprises are represented with 44% and service companies with around 17%

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Introductory Training for Young People (EQ) Addresses young people with severe placement obstacles (with

individual difficulties regarding training search and placement) under the age of 25

After completion of the program the firm has the opportunity to take over the trainee as an apprentice

Chamber of Crafts and Chamber of Commerce acquire 67% (73%) of EQ positions in their member enterprises

Companies with training experience are actively addressed to provide EQ positions

Operational EQ (certification by company and chamber of commerce) achieves a higher transition into training or employment

Three-quarters of young people end up in vocational training Innovative ALMPs also occur at the regional level

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Youth Employment Agency (YEA) Hamburg became the first federal state to introduce special job

agencies for young people („Jugendberufsagentur“) -> a lighthouse project

YEA is an organizational unit focusing on the transition between the end of compulsory education and the start of training or work, consolidating the offers of different institutions as well as guide, advice and support all young people

Characterized by a three-tier-model (local level in schools, regional level in all districts of Hamburg and federal level with Board of Directors)

Cooperation with the private sector succeeds with the teams „AzubiPlus“ for each district

Raising awareness of youth challenges with the private sector, providing them with different support services

Further challenges in the coming years, e.g. providing education for young immigrants or refugees, better permeability between vocational and academic education

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Employer initiatives Not just initiatives of public authorities, but also employer initiatives

exist: “Nord-Chance“ is a model initiated by the employers’ association

“Nordmetall”, covers 250 enterprises in the metal and electronics industry in northern Germany; In case the apprentice is suitable for the job, he/she receives a vocational training opportunity

“Zukunft durch Ausbildung und Berufseinstieg” is carried out by the employers’ association “BAVC” of the chemical industry; Prepare young people (young school leavers, long- term unemployed persons) for training maturity

“Senior Experten Service” (SES) introduced the public supported “VerA” initiative in cooperation with the industrial and craft sectors as well as liberal professions; Makes offers at the transition from school to profession, ensures the perception and evaluation of the initiative by outside partners

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Conclusion Vocational education system is one of the key elements in German

youth- related labor market policy Embedded and affected by policy innovations Two major issues facing the German youth labor market are the

inclusion of disadvantaged young people and removing path dependencies

Employers are involved systematically as they provide dual vocational training positions, partly fund the system and have a strong influence on the development of curricula and examinations

Participation rate of German employers strongly depends on the workforce of the enterprise

By increasing the cooperation between employers and institutions more external and preparatory vocational training for youths can be provided – and many young people with initial difficulties can then become apprentices, thereby easing skill shortages in particular with SMEs

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Werner EichhorstIZA

IZA, P.O. Box 724053072 Bonn, Germany

Phone: +49 (0) 228 - 38 94 – 531Fax: +49 (0) 228 - 38 94 - 510

E-mail: eichhorst@iza.org

http://www.iza.org