Austria has a 'dual system' of vocational training, providing both for training in special schools and in-company training for apprentices. For a long time, the system worked well, resulting in a relatively low youth unemployment rate, not least because companies could take on apprentices at a low cost, given their relatively low pay. In recent years, however, an acute shortage of apprenticeship places has emerged, due to intensified company 'rationalisation' measures, including significant cuts in personnel.
In February 2003, it seems that incentives for Austrian businesses to employ apprentices, introduced in autumn 2002, have failed to achieve their goal. There is a nationwide shortfall of about 7,000 apprenticeship places. In response, the Chamber of Labour (AK) is calling for a further extension of 'qualification courses' for young people who have not found apprenticeships.
Austria has a 'dual system' of vocational training, providing both for training in special schools and in-company training for apprentices. For a long time, the system worked well, resulting in a relatively low youth unemployment rate, not least because companies could take on apprentices at a low cost, given their relatively low pay. In recent years, however, an acute shortage of apprenticeship places has emerged, due to intensified company 'rationalisation' measures, including significant cuts in personnel.
This development has resulted in the youth unemployment rate rising faster than average unemployment. The shortfall in apprenticeship places stood at about 7,000 in February 2003, and in 2002 companies offered 1,300 fewer apprenticeships than in 2001. As experts at the Labour Market Service (Arbeitsmarktservice, AMS) have stated, the youth employment programme introduced by the government in September 2002 in order to improve employment opportunities for young people (AT0210201N) has so far proved ineffective. This programme provides financial incentives for companies to employ apprentices, with employers receiving annual payments of EUR 1,000 per apprentice employed for the next three years. Furthermore, companies providing apprenticeships are exempt from paying occupational injury, unemployment and health insurance contributions in respect of apprentices. Although these measures will cost some EUR 122 million in 2003, they have not as yet significantly stimulated the creation of apprenticeships.
Given the unfavourable prospects for apprenticeships, the Chamber of Labour (Arbeiterkammer, AK) has called for an extension of the 'safety net' provided by 'qualification programmes' for young people who have failed to find an apprenticeship. These courses are provided by a number of training institutions run by the various chambers or other public corporate bodies. Since the government’s 2002 decision to extend the capacity of this 'safety net' from 2,000 to 3,000 places is widely considered as insufficient, the AK has demanded the provision of a further 2,000 places. Moreover, the AK calls for the introduction of special training programmes within the 'safety net' scheme, culminating in a final examination entitling the young person to perform a formally recognised occupation. At present, qualification courses do not result in such a recognised final examination. Rather, they are devised to bridge the time gap caused by delays and interruptions in the course of a young person's education.
Neither the political parties nor business representatives have so far reacted to the AK’s proposals.
Eurofound recommends citing this publication in the following way.
Eurofound (2003), Youth employment programme unsuccessful, article.
