COVID-19 and the impact on vocational education and training - Dr. Tobias Maier Bilateral Technical Workshop Bonn/Virtuell, 2021

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COVID-19 and the impact on vocational education and training

Dr. Tobias Maier

Bilateral Technical Workshop
Bonn/Virtuell, 2021

                               www.bibb.de
Vocational Education and Training (VET) in Germany

• The strength of a dual-corporatist apprenticeship system is seen in an
  occupation specific training close to company needs.
       • Advantage: Youth unemployment is low, because apprentices are
          (mainly) trained for occupations, in which the economy sees the need
          for skilled labour
       • Disadvantage: The close linking of VET to the needs of the economy can
          lead to fewer young people undergoing dual training in the event of an
          economic crisis

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Vocational Education and Training (VET) in Germany

• The strength of a dual-corporatist apprenticeship system is seen in an
  occupation specific training close to company needs.
       • Advantage: Youth unemployment is low, because apprentices are
          (mainly) trained for occupations, in which the economy sees the need
          for skilled laboor
       • Disadvantage: The close linking of VET to the needs of the economy can
          lead to fewer young people undergoing dual training in the event of an
          economic crisis

         How did the COVID-19 crisis affect the apprenticeship market?
                                What can we learn from it?

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The apprenticeship market as of 30.09.2020

                                              Actual value Actual value Change comp. with 2019
                                              30.09.2019 30.09.2020
                                                                         Absolut       In %
Supply of apprenticeship places                    578.2     527.4        -50.8       -8.8%

Unfilled apprenticeship places                      53.1      59.9        +6.8       +12.8%
Demand for apprenticeship places
                                                   598.8     545.7        -53.1       -8.9%
(extended definition)
Unplaced applicants
                                                    73.7      78.2        +4.5        +6.1%
(with and without alternative as of 30.09.)
Supply-demand-relation
                                                    96.6      96.6        +0.0        +0.0%
(extended definition)
Newly concluded apprenticeship
                                                   525.1     467.5        -57.6      -11.0%
contracts

         Source: Oeynhausen et al. (2020)
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Losers of the COVID-19 crisis

The low increase in unplaced applicants speaks for a good integration of the "system".

Estimated rates of unsuccessful demand depending on school leaving certificate, 2009 to 2020:

                                                                                          Losers: Event, gastronomy, hotel business, industry
                                                                                          and commerce
                                                                                          (e.g. tourism clerk, clerk for logistics services,
                                                                                          restaurant clerk, skilled worker in the hospitality
                                                                                          industry, hotel clerk, cutting machine operator)

                                                                                          "Winners": crafts and agriculture
                                                                                          (e.g. plant mechanic for sanitary, heating and air-
                                                                                          conditioning technology, painter and varnisher,
                                                                                          bricklayer, carpenter, road builder, gardener)
      Low school leaving certificate   Med. school leaving cert.   Eligible for study

       Source: Oeynhausen et al. (2020: p. 23-34)                           www.bibb.de
Employment and apprentices before the COVID-19 crisis

Development of establishment, employment and apprenticeship figures, 2007-2018 (2007 =100%)
                                                                                            •   Decline in training activity is
                                                                                                highest among small
                                                                 Employees
                                                                                                establishments

                                                                                            •   Establishments justify the
                                                                 Establishments
                                                                                                decline in training primarily
                                                                                                with recruitment difficulties,
                                                                                                small establishments also with
                                                                 Apprentices                    rising costs for training

                                                   Establishments engaged in VET

    Employees         Establishments     Apprentices        Establishments engaged in VET

        Source: Eckelt et al. (2020: S. 1)
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School leavers and newly concluded apprenticeship contracts 1992 to 2020
              1000
                                                                                                                                                                                                                                School leavers

              900

              800                                                                                                                                                                                                               Projection of new contracts by
                                                                                                                                                                                                                                highest entry rate between 1992
in thousand

                                                                                                                                                                                                                                and 2009 (differ. by school
              700
                                                                                                                                                                                                                                leaving certificate)
                                                                                                                                                   From here onwards projection
                                                                                                                                                                                                                                Projection of new contracts by
              600                                                                                                                                                                                                               average entry rate between 2000
                                                                                                                                                                                                                                and 2009 (differ. by school
              500
                                                                                                                                                                                                                                leaving certificate)
                                                                                                                                                                                                                                Actual development of newly
                                                                                                                                                                                                                                concluded apprenticeship
              400
                                                                                                                                                                                                                                contracts (as of 31.12.)
                     1992
                            1993
                                   1994
                                          1995
                                                 1996
                                                        1997
                                                               1998
                                                                      1999
                                                                             2000
                                                                                    2001
                                                                                           2002
                                                                                                  2003
                                                                                                         2004
                                                                                                                2005
                                                                                                                       2006
                                                                                                                              2007
                                                                                                                                     2008
                                                                                                                                            2009
                                                                                                                                                   2010
                                                                                                                                                          2011
                                                                                                                                                                 2012
                                                                                                                                                                        2013
                                                                                                                                                                               2014
                                                                                                                                                                                      2015
                                                                                                                                                                                             2016
                                                                                                                                                                                                    2017
                                                                                                                                                                                                           2018
                                                                                                                                                                                                                  2019
                                                                                                                                                                                                                         2020
                                                                                                                    year
                                            Source: Maier. u.a. (2011) und Statistisches Bundesamt (2019): Berufsbildungsstatistik zum 31.12.; own
                                            calculations                                       www.bibb.de
What can be expected in the future due to demographics?
                 1000

                                                                                                                                                                                          Forecast of school leavers
                  900

                  800
                                                                                                                                                                                          Newly concluded apprenticeship
   in thousand

                                                                                                                                                                                          contracts as of 31.12.
                  700
                                                                                                             From here onwards projection

                  600
                                                                                                                                                                                           New contracts according to
                                                                                                                                                                                          lowest entry rates by school
                  500                                                                                                                                                                     leaving certificate (2009-'19)

                  400                                                                                                                                                                     New contracts according to
                                                                                                                                                                                          highest entry rates by school
                                                                                                                                         2024
                        2008
                               2009
                                      2010
                                             2011
                                                    2012
                                                           2013
                                                                  2014
                                                                         2015
                                                                                2016
                                                                                       2017
                                                                                              2018
                                                                                                      2019
                                                                                                             2020
                                                                                                                    2021
                                                                                                                           2022
                                                                                                                                  2023

                                                                                                                                                2025
                                                                                                                                                       2026
                                                                                                                                                              2027
                                                                                                                                                                     2028
                                                                                                                                                                            2029
                                                                                                                                                                                   2030
                                                                                                                                                                                          leaving certificate (2009-'19)
                                                                                                     year
Source: Kultusministerkonferenz (2020): Vorausberechnung der Schüler- und Absolventenzahlen 2019 bis 2030 (Dokumentation Nr. 224 vom November 2020).
DAZUBI – „Datenbank Auszubildende“ des BIBB auf Basis der Daten der Berufsbildungsstatistik der statistischen Ämter des Bundes und der Länder (Erhebung zum
                                                                        www.bibb.de
31. Dezember); Eigene Berechnungen: Annahme Schülerinnen mit Schulabschluss    aus dem Ausland oder ohne Angabe in Höhe von 10.000 pro Jahr
Conclusion / Outlook

• The supply and demand for apprenticeship places are interdependent
        • In times of economic crisis (COVID-19, financial crisis) potential demanders for
          apprenticeship places also withdraw from the apprenticeship market (Maier
          2020).
        • The demographic trend has contributed to the declining participation of
          establishments in VET in recent years.
• The number of newly concluded apprenticeship contracts can increase in the
  long term if …
        • … all school leavers can be increasingly integrated into in-company training again,
        • … if the companies' participation in training is maintained!
          (Matching problems or unfilled apprenticeship places must be accepted)

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Thank you!

For questions: Tobias.maier@bibb.de

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Literature

Eckelt, M.; Mohr, S.; Gerhards, C.; Burkard, C.: Rückgang der betrieblichen
Ausbildungsbeteiligung: Gründe und Unterstützungsmaßnahmen mit Fokus auf
Kleinstbetriebe. Bonn, 2020
Maier, Tobias: Auswirkungen der „Corona-Krise“ auf die duale Berufsausbildung (2020):
Risiken, Konsequenzen und Handlungsnotwendigkeiten. Version 1.0 Bonn, 2020
Maier, Tobias; Troltsch, Klaus; Walden, Günter (2011): Längerfristige Entwicklung der dualen
Ausbildung. Eine Projektion der neu abgeschlossenen Ausbildungsverträge bis zum Jahr 2020.
BWP 3/2011: S. 6-9
Oeynhausen, S.; Milde, B.; Ulrich, J. G.; Flemming, S.; Granath, R.-O. (2020): Die Entwicklung
des Ausbildungsmarktes im Jahr 2020. Analysen auf Basis der BIBB-Erhebung über neu
abgeschlossene Ausbildungsverträge und der Ausbildungsmarktstatistik der Bundesagentur
für Arbeit zum Stichtag 30. September. Bonn: Bundesinstitut für Berufsbildung

                                           www.bibb.de
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