TVET in Germany –
Role of the Social Partners in the context of
economic transformation processes
Jan Krüger,
German Trade Union Confederation (DGB)
Susanne Müller, Dr. Jupp Zenzen,
Confederation of German Employers‘ Associations (BDA)
I. Overview – Dual VET: a common path to employment
                               Labour Market
               2 - 3.5 years
   Full-time                          Dual VET
                                                            2 - 3.5 years
                                                                                                3.5 - 6 years
  Vocational
    Schools                            System                               Higher Education
                                                                                               10 - 13 school years
                                        General Education
I. Overview – Dual VET facts and figures
Trainees                               Employers                                Government
• On average 52.9% of the population   • 427,227 out of a total 2.16m           • Shares expenses for VET system
  enters Dual VET                        companies provide training (19.8%)       with employers
• of which 92,8% graduate from Dual    • Train more than 500,000 new trainees   • Public expenditure for Dual
  VET                                    every year                               VET: € 6.84bn
• 1.32m trainees in 325 recognised     • Hire 74% of Dual VET trainees as       • €3.07bn for 1,550 public
  training occupations                   temporary or permanent employees         vocational schools providing
• 4.9% of all employees are trainees     after training                           part-time VET
• High employment security
  (96.4% of Dual VET graduates         • Employers invest on average            • €2.39bn for steering, monitoring
  employed; only 82.1% employed          €18,000 per apprentice per year          and further supporting measures
  among people who are untrained)        (62% of which is training allowance)   • Employers contribute €7.7bn
• Receive average training allowance   • 70% of investment is refinanced by       (= overall net cost of Dual VET
  of about € 908 per month               the productive contribution of           2012/2013; gross cost = € 25.6bn)
                                         trainees during the training period
     Contributes to      National Economy / Society
                         • Strong SME competitiveness on international markets                                      Sources:
                                                                                                  BIBB Data Report (2019),
                         • Relatively low youth unemployment in Germany (4.7%)
                                                                                                   Federal Statistical Office
1. Motivation for Dual VET engagement
  Employer
               "I want employees who can competently
               fulfil the tasks and duties needed in my
               company, both now and in the future."
                                                              "I want workers to be loyal
                                                              to my company."
   "I want the productive and
   innovative contribution of                                "I want to save job familiarisation
   trainees."                                                  and retraining costs."
                                                                  Seek and find a trainee
     "I have a social responsibility
      to offer training."                                         • Obtain certification to
                                                                    provide training
                                                                  • Offer training place(s)
                                        "I want to                • Asses applications of trainees
                                        provide training."        • Select young person for VET
1. Motivation for Dual VET engagement
  Young people
                                   "I want to work in a
                                   skilled occupation."
    "I want to earn money."
                                                            "I want to learn
                                                            something practical."
       "I want further
       qualification."
                                                            Seek and find a training place
     "I want to attend upper
                                                            • Look for information on local
     secondary education."
                                                              employers providing VET
                                                            • Search for a training place offer
                               "I want to become a …"       • Apply for training places at
                               (e.g. Mechatronics Fitter)     companies
                                                            • Select a company
3. Two coordinated learning venues
  Dual VET training plan for a given occupation (example)
  Monday            Tuesday            Wednesday          Thursday           Friday
  In-company training                                     Vocational school education
  • Based on in-company training standards                • Based on vocational
    (minimum standards) defined in "training                education standards
    regulations"                                            defined in the framework
  • Step by step, trainees take over duties                 curriculum for vocational
    and tasks in the workplace, and in the                  subjects (2/3)
    process contribute to production                      • Based on framework curriculum for
                                                            general school subjects (1/3)
                                                          • Classroom-based learning
   In-company VET and vocational school education may instead also take place provided each in
                                   separate long-term blocks.
7. Dual VET standards based on requirements of world of work
  Demand-driven Dual VET standards guiding VET delivery in both learning venues
In-company training standard                                Vocational education standard
("training regulations") includes                           ("framework curriculum") includes
• Set of competencies for occupation to be                  • Learning objectives and content (structured
  trained (occupational profile / standard)                   in “learning fields”) which form the basis for
• How a company must teach this               coordinated
                                                              the schooling in vocational subjects in the
  occupation, as minimum requirements                         vocational school
  (training standard)                                       • Vocational subjects provide the vocational
• What a trainee needs to know in order to                    theory needed for working in a given
  pass the exam (examination standard)                        occupation
6. Stakeholders monitor, supervise and support
  Business community, social partners and government are all involved in Dual VET
Chamber organisations                                                       Government
• Advise companies on VET                                                   • Finances, supervises and monitors
• Train in-company trainers                                                   public vocational school system
• Assess and certify companies
  and trainers for in-company
  training provision                                                        • Federal government conducts
• Monitor in-company training                                                 institutionalised VET research (BIBB)
  (facilities, instructors, etc.)                                           • Organises the (continuous)
• Support companies in finding                                                develop-ment of Dual VET standards
  trainees                                                                  • Provides support to the
• Register training contracts                                                 unem-ployed and disadvantaged to
• Organise interim and final exams                                            enter
• Mediate disputes between           Social partners                          Dual VET
  trainees and companies             • Labour unions and employer           • Provides support for disabled
• Organise events                      associations negotiate training        people to enter Dual VET
                                       allowances for trainees              • Provides vocational orientation
                                     • Works councils monitor               • Raises awareness aboutDual VET
                                       in-company training
                                     • Are involved in the development of
                                       in-company training standards
                                     • Are part of the examination boards
7. Dual VET standards based on requirements of world of work
  Impetuses for updating/development of national Dual VET standards by the economy
                           Duration: max. 1 year
    Employers                 Social partners and
    identify new              government negotiate             Dual VET standards
    areas of tasks at         and adopt new standards
    the workplace             for in-company training
    requiring new             (training regulations)
    occupational              under the guidance of the
    qualifications            BIBB
                                                                     =
                            Development/updating of        Dual VET standards guide delivery,
                            education standards for        monitoring, supervision and
                            vocational schools             support of Dual VET nationwide
                            (framework curricula) in
                            coordination with in-
                            company training standards
                            (training regulations)
III. Benefits of Dual VET
Trainees                               Employers                             Government
• Gain occupational proficiency        • Gain highly competent employees     • Reaps political rewards of positive
  necessary for employment               meeting the needs of the company      economic and social impact of Dual VET
  opportunities and gainful income       (versus hiring externally)
                                       • Improve productivity as well as     • Meets national labour market demand
• Earn training allowance during         quality of services and products      for qualified labour with contribution of
  training                                                                     employers (training)
                                       • Save recruitment and retraining
• Learn in real and state-of-the-art     costs                               • Has VET system highly capable of
  work environment (machinery,         • Realise high return on investment
  work processes)                                                              modernizing itself (in line with
                                         in the long run
                                                                               technological change)
• Learn how to identify with           • Participate in defining company-
  company and occupation                 based training content and          • Able to efficiently steer VET system and
• Become capable and certified to        development of standards              assure its quality
  access different occupational        • Supports corporate social           • Strengthens formalisation of economy
  and educational opportunities          responsibility (CSR)
                                                                               by regulating in-company training
                                                                             • Gains early indications of labour
                                                                               market demand/supply
       Contributes to         National Economy / Society
                              • Economic performance and competitiveness
                              • Labour-market matching (employers / employees)
                              • Social and economic integration of young people (inclusiveness)
III. Current challenges for Dual VET
Trainees                                Employers                            Government
• Finding a Dual VET training place:    • Finding young people for Dual      • Dealing with expected shortage of
  number of unplaced applicants for       VET: number of vacant training       skilled workers
  Dual VET (2018: 78,600); number of      places rising from 2010: 19,800    • Dealing with the decrease in the
  companies (esp. SME) providing Dual     to 2018: 57,700
  VET decreasing from 24 % (2009) to                                           supply of young people for the
  19.8 % (2017)                         • Finding competent trainees for       labour market caused by
• Increasing demands at the               Dual VET who have the skills,        demographic change
  workplace / learning venue              knowledge and attitudes            • Countering the trend of more and
  (foreign languages, etc.)               necessary for entering Dual VET      more young people choosing
• Improving life-long learning            ("trainability")                     university over Dual VET
  opportunities in Dual VET             • Including disabled people          • Dealing with strong regional
  (especially for older applicants)     • Including large number of            disparity with regard to Dual VET
• Gaining access to Dual VET and          migrants since 2015                  training place demand and supply
  work through informally acquired
  competencies                                                               • Including disabled people
                                                                             • Including large number of migrants
                            National Economy / Society
   Contributes to           • Many people have difficulty entering Dual VET and hence
                              the labour market and gainful employment
                                                                                                                 Sources:
                            • Difficulty meeting demand of employers for skilled workers       BIBB Data Report (2019),
                                                                                                Federal Statistical Office
Sectors of education
Young people without
professional education
Alliance for Initial and Further Training
 Founded in december 2014
 Partners: Central business organisations, Trade Unions, Federal
  Government, Federal States, Federal Employment Agency
 Focus: Improving and strengthening the dual system
 Strategic fields of action:
    Enhance the significance and attractiveness of vocational
      training
    Provide each person interested in training with a "path" which
      can lead him or her as quickly as possible to a vocational
      qualification
    Achieve a lasting reduction in the mismatch between applicants
      and companies, both in regional and occupational terms
 April 2020: Joint declaration to ensure quality/quantity of vocational
  training during the Corona pandemic (e.g. „Summer of vocational
  training“)
  Positive Signals für Recovery of German Labour Market
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  after Corona-Pandemic
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  Zweite    Ebeneunemployment & short-time work
     Employment,
     in tsd.
     Dritte Ebene
       – Vierte Ebene
            Fünfte Ebene
                                                                           employees subject to social
                                                                           security contributions
                                                      unemployment + short-time-work
                                                                 unemployment
     Source: Statistik der Bundesagentur für Arbeit
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  Demografic Change: Driving Force for Skills Shortage
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                   Projection: Germanbearbeiten
                                      population in age group 20 - 65 years
  52,0
    Zweite Ebene
     Dritte Ebene
   51,0 – 50,7
            Vierte Ebene
             Fünfte Ebene
                   50,0
                   49,0
 Persons in Mio.
                                                                           - 11 %
                   48,0
                   47,0
                   46,0
                                                                                                                        44,9
                   45,0
                   44,0
                          2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040
                   Source: Statistisches Bundesamt
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  Structural Change and Digitalization:
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  Job-Gains & Job-Losses  2018 -bearbeiten
                                 2035
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  Zweite Ebene
     Dritte Ebene
     4,00
        – Vierte Ebene
     3,00
           Fünfte Ebene         gains
                   2,00
                                                    3,25
                   1,00
    Jobs in Mio.
                   0,00
                   -1,00
                   -2,00                                                             -4,00
                   -3,00
                                                                            losses
                   -4,00
                   -5,00
                   Source: Institut für Arbeitsmarkt- und Berufsforschung
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