Apprenticeship in Germany
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1 Apprenticeship in Germany Dr Georg Hanf Federal Institute for Vocational Education and Training (BIBB, Bonn) Technical Seminar Apprenticeship in Germany, France and Italy Rome, 20 March 2012
2 Apprenticeship in Germany 1. The education system and its outcome 2. Key features of the dual system 3. Costs and benefits 4. Facts and figures 5. Challenges 6. Responses 7. Prospects
3 1. Education System in Germany (simplified) Continuing Weiterbildung education Continuing vocational training ISCED 5B Universities ISCED 5A+6 Tertiary level over 19 years Dual system 45% ISCED 3B Full-time voc. school 15% ISCED 3B Upper secondary school 40% ISCED 3A Secondary level II 16 to 19 years with re-entries between sectors Lower secondary school Intermediate school Grammar school Secondary level I 10 (12) to 15/16 years Primary school Primary level 6 to 10 (12) years
4 1. Educational attainment by ISCED levels ISCED 1+2 ISCED 3+4 ISCED 5+6 Early school leavers Germany 14,5 59,1 26,4 11,1 EU ,8 25,2 14,4 Source: Eurostat, EU Labour Force Survey, Eurostat database, 2009
5 1. Unemployment (in %) By age (in 2011) Germany EU year olds 8,1 22, year olds 5,2 8,4 Total 5,5 9,8 By qualification (Germany) 2009 No vocational qualification 21,9 Vocational qualification (IVET/CVET) 6,6 Higher education degree (ISCED 5A) 2,5 Total 8,4
6 2. Core features of the dual system of VET 1. Close co-operation of government and industry (framework-setting, shared funding, development and implementation of standards, curricula, assessment, certification) intermediary institutions 2. National Standards (occupational, training, assessment stand.) aiming at the ability to act autonomously in a broad occupational field (technical, social, personal competences) 3. Learning at the workplace with qualified VET staff (skilled workers and trainers) in combination with VET teachers 4. Embeddedness of VET in both, the education and the employment system (governance (state and private), provision (school and company), status (student and employee)) 5. Institutionalised VET and labour market research and career guidance
7 2. Levels of duality In-Company Training Vocational Training Act Training regulations Apprenticeship contract Enterprise Legal basis for training Legal basis for recognised occupations Legal basis for training relationship Learning venues School Education&Training School acts of the states Framework curricula Compulsory vocational school Vocational school Company training schedule Content of training Curriculum Trainer Chambers and other competent bodies Training enterprises Training personnel Monitoring, counselling examinations Funding Vocational school teacher District Presidents or School supervisor States, districts and municipalities
8 2. Shared responsibility in VET - Four parties cooperation between the public and private sector Vocational training act joint steering, regulation and financing arrangements Federal Government Employers governed by a statutory legislative framework Federal states Federal Institute for Vocational Education and Training (BIBB)- The Board Unions
9 2. Role of the Social Partners National level Participation in the development of training ordinances and standards; making recommendations Regional level Sectoral level Federal states level: Making recommendations on all issues of VET with regard to the coordination between school and enterprise Level of competent bodies: Counselling; monitoring of the implementation of training in the enterprises; holding examinations; awarding of certificates/ qualifications Negotiations on the supply of apprenticeships; wage agreements covering apprenticeship pay Company level Planning and carrying out training in the enterprises
10 2. Institutional framework State level: State government Minister of Education Conference of the Ministers of Education Framework curricula Curricula Training ordinances, Laws Federal level: FM of Education and Research (BMBF) in cooperation with other Federal Ministries responsible Federal Institute for Vocational Education and Training (BIBB) Employers associations Trade unions Competent Body (Chamber) Examination boards Vocational school In-company training Works council Dual system of vocational education and training Youth representative Source: Education report working group at the Max Planck Institute for Education Research 1990
11 Who pays for what?
12 3. Financing of Dual Vocational Education and Training 15% 10% 75% Companies 23.8 billion EUR Employment Agency, Ministry of Labour, Minstry of Education 4,6 billion EUR Federal States (vocational schools) 3.2 billion EUR State Figures for the year 2007: 31,6 billion EUR (in total)
13 3. Company costs/benefits per apprentice per year Apprentice pay Personnel pay/ Opportunity cost Returns from productive work Training facilities Media Saved transaction/ induction costs Work dresses Administration Other: image of company, synergies with CVT Gross costs Benefits Net costs
14 COSTS 3. State - costs and benefits Part-time vocational schools / teachers Programmes outside companies/schools Tax reductions (on investments) BENEFITS Higher tax returns (higher wages) Less unemployment > less social expenses (direct and indirect) Less full-time schooling (more expensive)
15 3. Individual benefits Wage/salary/income with an IVET qualification compared to those with no vocational qualification + 50% In certain areas the salary with an advanced vocational qualification exceeds the salary with a university degree (BA) Career opportunities Status / prestige
16 4. Facts and figures Number of training profiles: 350 Regular duration: 2 3,5 years Apprentices in total (2010): ca Publicly funded ca (10,5%) Companies offering training (2010): (22,5% of all companies) Average age of apprenticeship beginner 19+ years Source: BiBB if not mentioned differently data from 2009
17 4. Entries into IVET 2010 Dual system IVET % Full-time school IVET % Transition/Integration %
18 4. Career plans of schools leavers 100% 90% 80% 70% 60% 50% Other 3 Full-time vocational school 2 General education and vocational school 1 40% Higher education 30% 20% 10% 0% School-based vocational training, public service career path Training in the dual system
19 4. Pathways of school leavers 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Other 3 Unemployed, not seeking employment Full-time vocational school 2 General education and vocational school 1 Higher education School-based vocational training, public service career path Extra-company/school-based training according to vocational training act and crafts regulation code Training in the dual system according to vocational training act and crafts regulation code
20 4. Success rates Training contracts' termination rate: 22,6% (Half of which start and finish an other training) Final examinations' success rate: 90,2% Companies' in-take rate after graduation: 61%
21 4. People with apprenticeship, x years after completion (2007) STATUS 0-3 years after 4-6 years after 7-10 years after Unemployed 9,0 6,7 6,8 Full-time employed 46,7 53,9 58,5 Middle precarity 17,2 12,3 9.6 High precarity 7,3 5,3 6,2 Self-employed 1,9 2,9 4,3 Not seeking empl. 4,3 6,6 9,0 Continuing training 13,6 12,3 5,5
22 4. Matching of qualifications/skills and occupations (2006) over-qualified formal over-qualified skill-based over-qualified twofold under-qualified formal under-qualified skill-based under-qualifiied twofold University qualific. (22,7%) 19,4 4,8 5 4 Advanced voc. qual. (6,3%) 41,9 2,7 10 6,5 2,8 0,4 IVET qualification (60,6%) 10,2 9,4 4,2 7,2 4,3 0,7 No formal qualific. (10,5%) 12,6 49 2,8 3,9 All employees 13,2 8,2 4,3 9,9 4 0,7
23 4. Continuing VET levels Career on the vocational track
24 5. Challenges Lack of training places Transition system Demographic decline Skill shortages 15% of age cohort with no vocational qualification: Need to bring more school leavers (low achievers, migrants) into apprenticeship Academic drift: competition of the dual system with higher education institutions will increase; there is a need to keep/make apprenticeship attractive for high achievers Lack of permeability between dual training and higher education - Competences acquired during VET must be recognised for further education including for university access. International competitiveness of skilled workforce requires international qualifications like foreign language knowledge and intercultural skills
25 5. Transition/integration system Different programmes and schemes - Participants in 2007: Share in % Full-time vocational school: general leaving cert 18,0 General school leaving cert programmes for employed/unemployed 2,1 Vocational preparation year (school-based) 12,4 Vocational school for employed/unemployed (without contract) 5,9 Full-time voc. school: vocational foundation (with credit) 14,7 Full-time voc. school: vocational foundation (without credit)) 8,8 Dual vocational training foundation year (full-time school) 9,5 Voc preparation employment agency 21,6 Introductory training employment agency 5,8 Compulsory work placements 1,2
26 6. Responses 1. National pact on VET securing a high skilled workforce 2. Creating educational chains (potential analysis, vocational orientation, accompaniment of apprenticeship from beginning to completion) 3. Make VET more attractive for high achievers (inter alia through strengthening CVET) 4. More flexibility (easier access to initial VET / qualifications: introductory training, modular provision, training units) and permeability (easier transition within VET and from VET into HE) 5. Quality assurance and development
27 6. National Training Pact 2004/2007/2010 Federal government, Ministries of Education, Labour, Economy, Employment Agency, Chambers, Federal States, State Minister for Migrants 1. Secure training maturity of young people 2. Develop vocational orientation 3. Bring youth and companies closer together 4. Develop all potentials - the excluded : migrants, low achievers, disadvantaged, handicapped - the high performers 5. Find/create new training places 6. Make the transition system more effective 7. Improve the data base
28 6. How to attract high performers? 20% of all apprentices have a university entrance certificate Offering apprenticeships in sophisticated occupations: IT, banking, media, social and market research Additional qualifications/units Transition into higher education conditional access to university of applied sciences Apprenticeship on tertiary level Dual study courses Advanced vocational training general access to university
29 6. How to attract the excluded? JOBSTARTER (creating structures) Regional networks of all actors Development/stabilisation of training structures Initiatives in certain sectors for certain target groups Modularised entry into training/apprenticeship Education chains Analysis of potential starting with 7th grade Vocational orientation starting with 8th grade Apprenticeship entry accompaniment individual support at the beginning and during training (avoiding contract termination)
30 7. Future Prospects for intermediate (VET) qualifications
31 7. Future demand for qualifications (15-64y, in %) Without vocational qualification IVET qalification University degree Advanced voc. qualification In education and training
32 7. Working population by qualification(millions) - forecasts ISCED 3 B/4 ISCED 5 B ,5 3,0 2,5 2,0 1,5 1,0 0,5 0, ISCED 5 A / ISCED 1 / 2 / 3 A
33 Thank you for your attention!
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