Apprenticeship a means of fighting youth unemployment? The example of Greece

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1 Apprenticeship a means of fighting youth unemployment? The example of Greece

2 Contents I. Apprenticeships within the Greek education / training system II. III. Current situation of youth unemployment in Greece How work-based learning can reduce unemployment the example of Greece

3 Apprenticeships within the Greek education / training system In Greece, apprenticeship is considered to be an important part of the educational system, as it relates the students with the labor market. Τypes of student apprenticeship programmes: 1. Traineeships for university students and of the Higher Technological Education Institutions 2. Traineeships for students of the Vocational Training Institutions i. three-year long alternance programmes (SEK) offered by the Ministry of Education ii. new year-long post-secondary apprenticeship programme as an option to graduates of the most popular school-based VET programmes (EPAL)

4 Apprenticeships within the Greek education / training system After a change of political priorities in 2015, the Ministry of Education addresses the issue of apprenticeship system in the draft Law on Education (mid-2015), which: discontinues the three-year upper secondary alternance programmes as offered by SEK schools and allows post-secondary VET providers (IEK) to offer similar programmes in several specialties; includes the post-secondary year in the formal education system, as a specialization year offered in the form of apprenticeship (on-the-job training) or practical training alongside specialization courses; increases the flexibility of apprenticeship and practical training provision at post-secondary level (IEK).

5 Apprenticeships within the Greek education / training system The national plan for apprenticeships for aims at raising the number of apprentices from to per year Several voucher-type projects supporting apprenticeships or work placements outside the formal education system were subsequently introduced Ministries of education and labour also started working closely together on a comprehensive national framework for apprenticeships.

6 Apprenticeships within the Greek education / training system Manpower Organization of Greece (OAED) in numbers 51 vocational training units since 1954 Theoretical and practical training for young people aged years old graduated from 1 st class of lyceum (secondary education) in benefits Practical training (apprenticeship) in Public & private sector Earning their first salary (70% of the wage funded by Manpower) Eligible at social security for first time

7 Current situation of youth unemployment in Greece Highest levels of unemployment in EU are recorded in Greece (24.2%) and in Spain (20.1%) EU members with the lowest unemployment percentage are Czech (4.1%), Germany (4.2%) and Malta (4.3%) Youth unemployment (under 25 years old) Again, highest levels of youth unemployment are recorded in Greece (51.4%) and in Spain (45%), while the EU average is 21.1% Between January and February 2016, youth unemployment in Greece records a slight decrease from 51.9% * February 2016

8 How work-based learning can reduce unemployment the example of Greece The challenge: High youth unemployment and skills mismatch Greece has the highest rates of youth unemployment among EU member countries. Part of the reason for these high unemployment rates is a mismatch between the skills employees possess and those sought by employers While the economic crisis resulted in a low growth and high unemployment, a significant skills shortage is further deteriorating competitiveness 33% of employers in Greece regularly leave vacancies open because they cannot find the skills they need ( Education to Employment: Getting Europe s Youth into Work, McKinsey Center for Government)

9 How work-based learning can reduce unemployment the example of Greece Source: McKinsey Center for Government: Education to Employment: Getting Europe s youth into work

10 How work-based learning can reduce unemployment the example of Greece Part of the solution: Apprenticeship The best way of addressing structural unemployment is to help workers acquire the skills that employers need most. Youth who do not choose to pursue a university degree must be able to acquire marketable skills Apprenticeships have proven to be successful in imparting these necessary skills to individuals Steven McIntosh (2007): British workers who completed apprenticeships could expect both higher wages and a greater chance of being employed Germany and Austria, two countries with long-standing and welldeveloped apprenticeship programs, have been successful in educating and employing their youth largely because of their dual education system.

11 How work-based learning can reduce unemployment the example of Greece Benefits of work-based learning / apprenticeship Combine study and work, allowing individuals to acquire work experience while improving their skills in line with employers requirements. Help reduce skills mismatch by being responsive to labour market change. Offer a stepping stone into the labour market; apprentices receive a recognized qualification for an occupation, valid across workplaces, and certifying possession of a full set of knowledge, skills and competences to perform that occupation. May result in a job offer from the company where the training was completed.

12 How work-based learning can reduce unemployment the example of Greece The example of Greece Data from Manpower Organization shows that there is a very high percentage of absorption of graduates into the Greek labor market, 70% and even 90% in some cases OAED is currently implementing extensive modernization of its apprenticeship programmes, where emphasis is put on clearly defining the learning outcomes expected to be achieved in the workplace for each specialties, raising transparency in evaluation procedures and increasing SMEs participation through inputs such as incentives and campaigns.

13 How work-based learning can reduce unemployment the example of Greece The example of IED 50% of the permanent workforce in the Institute of Entrepreneurship Development are people that came in the company as apprentices and remain after the end of their practice Apprenticeship can clearly and realistically help tackling youth unemployment in Greece

14 Thank you. Contact: Panagiotis Koutoudis Institute of Entrepreneurship Development 60 Ir. Polytechniou str Larissa, Greece T F

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