Unprecedented numbers of youths in Germany are lacking formal education.
Rebooting Our Workforce: Addressing the Skills Crisis Among Young People in Germany
In an alarming trend, a shocking number of young people in Germany lack proper vocational training or a university degree. The situation has been worsening for years, a dire predicament as skilled workers are in high demand. Yet, straightforward solutions can make a difference.
Approximately Millions Lack Vocational Skills
Last year, a staggering 1.6 million 20- to 34-year-olds were untrained and without a degree [1]. Each year, the percentage grows - in the last 12 years, 460,000 more young people have joined their ranks, according to the Institute for Employment Research (IAB). The Federal Institute for Vocational Education and Training (BIBB) says that 2.8 million of these age group members are lacking vocational qualifications, almost one in five [1]. The discrepancy arises because BIBB statistics include all young adults, whereas IAB statistics only consider those who are employed.
A Looming Shortage of Skilled Workers
Despite the dramatic shortage of apprentices, Germany lacks an average of over 530,000 qualified workers across the nation [2]. This figure will grow to another 200,000 in the next two years, bringing the deficit to 730,000 by 2027 [2].
Many Don't Finish School
Professor Enzo Weber of IAB highlights bottlenecks in various sectors, including care, health, technology, IT, and the green economy, which require skilled workers and highly qualified professionals [3]. Demographic change also contributes to the problem, as over the next 15 years, the country will lose seven million employed persons due to age-related reasons.
Falling Behind in School
The issue starts at school. Each year, tens of thousands of young people graduate without a degree, as 47,500 failed to even complete the main school leaving certificate in 2021 [4]. About six percent of all students leave without a certificate, according to the Federal Statistical Office. Moreover, young people without a school leaving certificate are less likely to secure an apprenticeship contract, as three-quarters of those without vocational training don't have one [5].
Migrant Workforce Shortcomings
A significant factor driving the increase in the number of young people without training is migration. Around 45 percent of 20- to 34-year-old refugees coming from asylum countries like Syria or Afghanistan have no vocational training [1]. The proportion has also risen among young people from other EU countries and, to a lesser extent, among young Germans.
"This does not mean that migrants are less educated but rather that many people come from completely different education systems to Germany," explains Weber [3]. He advocates for strengthening their integration into the labor market, by recognizing and developing their potential.
Uneven Pay and Lack of Awareness
Another reason for the apprentice shortfall is that young people often opt for immediate employment in unskilled helper jobs. These positions offer higher pay in the short term, partly due to the increase in the minimum wage, compared to apprenticeships, where first-year trainees start earning at least €680 per month [3]. However, this won't remain the case, according to Weber.
It's crucial to implement more training and low-threshold offers, where one can complete certain modules in a flexible manner alongside work, and achieve the qualification after a few years [3]. Expanding career guidance and orientation, as well as encouraging companies to be present in schools and at fairs, can also help. Practical experiences such as company visits, student projects, or internships, are essential. Online communication on popular platforms like YouTube, WhatsApp, and TikTok is vital in reaching more potential applicants.
Companies and Young People Miscommunicate
Despite the skills gap, over 73,000 training places remained unfilled in 2023 [2], with every second training company struggling to find enough apprentices - a new record. Many companies don't even receive a single application.
Companies often cite insufficient suitable applicants as the main reason for unfilled training places. In some cases, training offers don't match young people's career aspirations, and poor communication contributes to the problem. A survey by the Bertelsmann Foundation and the Institute of the German Economy (IW) shows that businesses communicate on different channels than young people. If they used YouTube, WhatsApp, and TikTok, companies could reach more potential applicants [6].
Young people are often unaware of various training professions, but some can earn significantly more in the long run, as revealed in an IW study. Career-oriented professions like technical research and development specialists top the list, with some trained employees earning more than university graduates [6].
Sources:
- [1] IAB
- [2] German Chamber of Industry and Commerce (DIHK)
- [3] Caroline Amme
- [4] Federal Statistical Office
- [5] Vocational Training Report
- [6] Bertelsmann Foundation, Institute of the German Economy (IW)
Additional Insights
- The shift towards higher education: Many young people and their families perceive academic education as more prestigious or advantageous than vocational training, leading to fewer apprenticeships being taken up [4].
- Changing labor market and youth preferences: Young people's career expectations and aspirations have evolved, with some preferring white-collar or academically oriented pathways over traditional manual or craft apprenticeships [4].
- Persistent regional and sectoral differences: Regional and sectoral disparities contribute to some young people not finding suitable apprenticeship positions [1].
- International cooperation and skilled worker recruitment: Initiatives like the German-Asian Forum aim to connect vocational training providers with international skilled workers, potentially supplementing domestic training and addressing gaps [4].
- Targeted support for underrepresented groups: Providing support and representation for women and other underrepresented groups in traditionally male-dominated apprenticeships may widen participation and reduce the number of young people without training [4].
- Strengthening the dual apprenticeship model: Continuing to enhance the system that combines classroom education with practical training in SMEs ensures young people have relevant, hands-on experience and better employment prospects after training [2].
- Increasing apprenticeship remuneration: Germany has significantly increased apprenticeship pay (6.3% increase in 2024, the highest since 1992) to make vocational training more attractive, especially in sectors with shortages [1].
- Political recognition of vocational education: There is a call for stronger political acknowledgment of the equivalence of vocational and academic education, elevating the status of vocational training, making it more attractive among youth and parents [4].
- The alarming absence of vocational training among young people in Germany is contributing to a growing skills crisis, with an estimated 1.6 million 20-34 year-olds lacking vocational skills last year.
- In an effort to address this issue, there is a need for more career guidance and orientation, as well as encouraging companies to be present in schools and at fairs to increase awareness about vocational training opportunities.
- Additionally, online communication on popular platforms such as YouTube, WhatsApp, and TikTok is crucial in reaching more potential applicants for vocational training.
- The lack of awareness about vocational training opportunities and its potential earnings, as well as the societal perception that academic education is more prestigious, are key factors contributing to the shortage of skilled workers in Germany.
