Chambers of Commerce association calls for reform of vocational training system

On 22 January 2007, the Association of German Chambers of Industry and Commerce (DIHK) called for a reform of the dual system of vocational training. In its view, a modernised version must ensure not only the quality of vocational training, but should also take into account changing labour market needs. At the same time, the Confederation of German Trade Unions underlined the importance of equal opportunities for all in accessing adequate vocational training. Meanwhile, a recently published study highlights the increased number of vocationally qualified younger workers who have changed occupations.

Dual system of vocational training

For the majority of younger workers, vocational training still remains their means of entry to a future career. The German dual system of vocational training combines two principles: firstly, apprentices receive on-the-job training in establishments; secondly, vocational schools provide theoretical knowledge to support this training. However, a recent study (in German, 1Mb PDF), published by the Institute for Employment Research (Institut für Arbeitsmarkt- und Berufsforschung, IAB), shows that a rising proportion of vocationally trained younger workers are in occupations that rely on skills different to those in which they have been trained.

Study results

The aforementioned IAB study takes a long-term perspective, examining significant changes with regard to the occupational choices of western German apprentices and their future career trajectories, over the period 1977–2004. The analysis confirms that the top 10 choices for vocational training among younger workers have hardly changed since the 1980s. Male apprentices still prefer to train for a position as a mechanic, electrician or machinist while female apprentices opt for training positions as clerical or shop assistants, or as receptionists. Since 1977, only a few new occupations have entered the list of top 10 training positions; these include bank clerk (male apprentices) and pharmaceutical assistant (female apprentices) positions. These latter vocations reflect the shift away from a labour market that was characterised by industrial jobs towards one in which service sector jobs are more prevalent.

Interestingly, the percentage of male apprentices who worked in an occupational field that was different from the one in which they had successfully completed their vocational training rose from approximately 18% in the 1970s to 26% in 2004. Conversely, the corresponding figure for female apprentices fell slightly from 18.6% in 1977 to 16.3% in 2004. In other words, male apprentices were exposed to occupational change more often than their female counterparts. The following two reasons can largely explain the different occupational developments observed for men and women:

• Training in the industrial sector – typically in male occupations – leads to specialised skills. The application of such skills is often restricted to the chosen occupation. Therefore, apprentices in these professions are more strongly dependent on employment in their original occupational field. As a result, they are more vulnerable to changing labour market needs. On the other hand, skills that are relevant for a commercial or service-oriented position are more easily transferred to other, similar occupations. As previously indicated, these latter occupations are more frequently chosen by female apprentices.

• The study also reveals that those fully-trained apprentices who did not succeed in gaining employment in the training unit in which they had spent time as apprentices often face unemployment. Each month spent in unemployment depreciates the market value of the apprentice training degree. To escape unemployment, many vocationally qualified younger workers change to a position as an untrained worker in a different occupational field.

With respect to occupational change, the study concludes that the dual system of vocational training needs to be reformed in order to match skills supply with the skill demands of the labour market.

Proposals for future vocational training system

On 22 January 2007, the Chair of the Association of German Chambers of Industry and Commerce (Deutscher Industrie- und Handelskammertag, DIHK), Ludwig Georg Braun, underlined the following challenges facing the future vocational training system: rapid technological progress; the advent and growth of a knowledge-based society; and an ageing population. In a statement (in German), Mr Braun in turn called for a reform of the dual system of vocational training. Moreover, the DIHK presented a reform proposal (in German, 272Kb PDF), which divides vocational training into two phases. During the first phase, all apprentices in the same occupational field should be taught the core competencies of the particular field. Only in the second phase of the apprenticeship should the trainees be introduced to the special requirements of their occupation.

On 27 January 2007, the Confederation of German Trade Unions (Deutscher Gewerkschaftsbund, DGB) welcomed the DIHK’s proposal. Vice-chair of the DGB, Ingrid Sehrbrock, stated that the DIHK had proposed a re-organisation of occupational training that was in line with the DGB’s general ideas (see news article (in German) 24 January 2007). Ms Sehrbrock emphasised that the right to undertake vocational training would have to be considered in any reform. Furthermore, she contended that vocational training which provides for widely applicable qualifications should take priority over highly specialised training.

Sandra Vogel, Cologne Institute for Economic Research, IW Köln