Im Blickpunkt. Vocational Education and Training in the US. May By Simone Ruschmann and Dr. Bettina Wurster

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1 May 2012 Im Blickpunkt Vocational Education and Training in the US By Simone Ruschmann and Dr. Bettina Wurster In his State of the Union address in January 2012, President Barack Obama set the political agenda for the current year with a vision of an economy built to last. Essential components of his strategy for more competitiveness and economic growth are the availability of a skilled workforce and the improvement of vocational skills. This year, for example, an additional 2 million Americans are to receive vocational education. The reason for this focus is the increasing demand of U.S. companies for a skilled, non-academic workforce. A survey conducted by the German American Chambers of Commerce (GACCs - AHK USA) among subsidiaries of German companies in the US in the fall of 2011 showed that almost 60 percent of them had problems recruiting qualified candidates with an engineering/technical skillset 1. I. Various vocational education and training systems, but no dual-approach concept Unlike in Germany, the transition from education to the labor market is not supported by a government-facilitated vocational education concept. For a long time vocational education was left to the companies that trained their new employees for their specific responsibilities. In the meantime, however, the number of opportunities for vocational education in schools has been increasing. They are being offered on multiple levels within the education system and for different age groups. The most important institutions for teaching jobrelated fundamentals are high schools and, following high school graduation, two-year community colleges. 1. Vocational guidance in schools All U.S. states require compulsory education up to 16 or 18 years of age. Depending on the state, students attend elementary school up to the 6 th or 8 th grade, followed by junior high school or middle school. The secondary high school comprises grades 9 through 12 or 10 through 12, respectively. The curricula of the final five years of education include subjects that are intended to facilitate the transition into the subsequent workforce and university education, such as courses in wood- and metalworking or automotive repair. However, in the past few years these offerings have been scaled back in favor of more academic-based education. - 1 German-American Business Outlook, Dec. 2011

2 Im Blickpunkt Seite 2 2. Vocational education and training in community colleges Vocational education and training is provided in twoyear community colleges as opposed to academic colleges and universities. Community colleges offer fundamental vocational education for high school graduates as well as programs for training and continued education for adults already in the workforce. Currently there are almost 1200 community colleges with more than 12 million students in the U.S. They receive government grants and usually charge low tuition. In addition, the admission requirements for community colleges are not as stringent as those for traditional educational institutions. Community colleges focus on teaching specialized theoretical and practical knowledge and skills. They usually do not provide any on-the-job training phases. After graduation, graduates usually apply for jobs in the immediate vicinity, which is why [community] colleges offer courses that are tailored to the labor market in their respective area. Since the 1990s there also have been so-called Tech Prep programs (technical preparation) that are intended to facilitate the transition from high school to educational institutions of higher learning. The program usually takes four years and comprises the final two years of high school and two years at a community college. The two institutions agree on a coordinated and progressing curriculum. 3. On-the-job training High school graduates, who are not able to continue their education at a college or university, including drop-outs, join the workforce without any additional vocational training measures. These workers traditionally receive individual on-the-job training in the respective company. New employees receive instruction at the job site, however, how and how long they are trained and what the new job training entails is at the discretion of the respective company. There also are apprenticeship programs that allow for a more intensive form of job training. This apprenticeship training, which usually takes four years, is based on the respective requirements of the employer and teaches specific, job-related matters. Apprentices receive employer provided on- the-job training and take related courses. Apprenticeships are mostly found in the construction industry, in the manufacturing industry and in the healthcare sector. The program is monitored by the Department of Labor. 2 In the course of the past decades, apprenticeship training has become increasingly less important. Currently there are approximately 388,000 apprentices in the U.S. For cost reasons, most companies prefer on-the-job training to a long-term vocational education program. II. Education is the responsibility of the individual states The co-existence of different programs for acquiring vocational skills on several different levels of the education system is due to the fact that education is the responsibility of the individual states. The U.S. Constitution does not provide for federal authority for the education system or for vocational education and training. The individual states are completely independent when it comes to the introduction of curricula and they can adapt them to their respective underlying regional circumstances. In addition, individual school districts also are involved in setting the content of curricula for schools. The influence of the federal government on the education system therefore is very limited and mostly concerns the financial support for state and local programs. The federal government usually provides appropriated grants. The decentralized system of education results in a high number of different programs with local focus. Due to the lack of national standards, there often is no nationwide transparency. The quality of a program often can only be assessed within local limits. - 2 For more information see

3 Im Blickpunkt Seite 3 III. Political and social significance of vocational education and training In the U.S., vocational education and training is considered to be an economic as well as a socio-political measure: On one hand, vocational skills ensure a welltrained workforce for the economy. On the other hand, the programs are to integrate economically or intellectually disadvantaged youth in the labor market. For example, community colleges traditionally attract high school graduates with average grades and limited financial means, which allows for conclusions concerning the social regard for these programs. The sociopolitical component coins the image of state-financed programs, which also explains why many companies are skeptical when it comes to graduates of theoretical vocational education. IV. In great demand: Company initiatives based on the German model Some companies have initiated their own measures to meet their need for skilled workers. In some instances cooperation initiatives have been established between companies and community colleges that are to combine company-based and educational content. In his State of the Union Address in 2012, President Obama even praised the Siemens training program in North Carolina as best practice, which is carried out in cooperation with Central Piedmont Community College. There also are other companies that are committed to vocational education and training. Amongst them are a lot of individual solutions on the company level. Smaller enterprises have to rely on what the labor market offers as they are unable to create their own structures. Exemplarily, some vocational training projects shall be mentioned: The Andreas Stihl AG company that manufactures power equipment for forestry and the construction industry, has been offering a four-year vocational education and training program for up to six employees annually at its U.S. headquarters in Virginia Beach, Virginia, since the late 1970s. The employees receive a practical introduction into the technical fundamentals of manufacture and then work their way through different areas within the company in order to familiarize themselves with the different steps. Once completed, they specialize on a work area, for example as a toolmaker, machinist, CNC machinist or mechatronic technician. Parallel to the on-the-job training the employees attend evening courses at the local community colleges. Once they finish the vocational education and training, they receive a certificate of vocational education and training and after two years can get an Associate Degree from the college. The Volkswagen AG has been operating a Training Academy for new employees in Chattanooga, Tennessee, since August In addition to general introductory seminars, VW, in cooperation with Chattanooga State Community College, offers a vocational education and training program for high school graduates. Every year up to 24 youth are trained to become automotive mechatronic technicians in a three-year program. The program combines classroom phases at the college and on-the-job training at the VW assembly facility. The onthe-job training is paid and scholarships are available as well. Once the vocational education and training program is completed, students receive a diploma from the college as well as a certificate of vocational education and training from VW. The German model of vocational education and training also is copied by U.S. companies: Caterpillar, the construction equipment manufacturer, offers its young employees training as part of the two-year ThinkBIG program at many of its U.S. sites. Graduates of the program are trained Cat Dealer Service Technicians who have been trained in machine repair. The four-year ThinkBIGGER program allows them to continue training and education for management responsibilities. The classroom courses for the program were developed by local community colleges or technical colleges. Almost 400 employees are trained in these programs at the Kernersville, North Carolina, site alone.

4 Im Blickpunkt Seite 4 V. Outlook: Community colleges increasingly popular To date, the focus of the Obama Administration in the area of vocational education and training has been on expanding vocational education at community colleges. In 2009, the National Graduation Initiative was passed that is to provide grants in the amount of $2 billion to community colleges in the coming years. In February 2012, Barack Obama announced that he intended to make an additional $8 billion available to community colleges. The money is to be used to support cooperation with companies and to provide paid internships for low-income students. In addition, there are to be grants for continued education for workers. However, this proposal still requires Congressional approval. If this will happen until the November elections is dubious in light of the currently indurated positions inbetween the parties.

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