The "Dual" Model of Professional Formation in Germany
By Inke Fabian
The professional formation system in Germany is world-wide reknown as producing high qualified employees. The speciality of the so called "dual" model is considered to be the reason for a relatively low youth unemployment in Germany if compared to other countries (Raab 1992: 36, Bundesanstalt für Arbeit 1998). In autumn 1998, 10,4% of young people were unemployed in Germany (9th place in Europe). Nevertheless, nowadays we are confronted with mass unemployment in Germany where especially young persons are deeply affected, more than other groups of society.
The dual character of professional formation in Germany, the apprenticeship, consists of a practical and a theoretical part: During three years, young people are introduced to the practical working methods in an enterprise, they are skilled in the sectors of handicraft, trade, industry, agriculture and the public sector. Two days a week, theoretical background is imparted in a vocational school. About two thirds of young people who finish school decide to begin an apprenticeship every year.
The success of this dual professional formation is dependent on the compatibility of the educational system and the occupational system. A high degree to which these two systems are connected is decisive for a posterior unproblematical transition of young apprentices into the occupational system.
I. Youth unemployment in Germany
The problem of youth unemployment turned out a structural problem only in 1974, before it had always been considered to be a conjunctural problem (Klasen 1979: 6, Harten 1977: 7ff).
The reason why young people suffer from unemployment to an unproportionally high degree can partly be explained by the juridical status of young workers (Harten 1977:27). The obligation to visit the vocational school turns out to be a profit problem for the firms. Because of his/her absence of labour two days a week, an apprentice is of low economic attractivity. Besides, young people aren´t allowed to be piece-workers and are subject to limitations in night work. They also often have to absolve the military service later which hinders to take them over as an employee directly. In addition, under 18 year-old people are affected by the low protection against dismissal.
1. Problems of unemployment statistics
As unemployed are defined those who are registered at the Labour Exchange, who are willing to work and capable to work. They have to be available for the job market which means that they have to accept any offered job without being able to decide about the quality of the job (Klasen 1979: 21/22). Excluded are those who are ill, who are already working but still searching for a special formation which corresponds to their education, or those who are not willing to accept any low-paid job. Also not included in the statistics are young people who are taking part in programmes of "job-preparing" or "job-promoting measures", continuing studies or retrain measures and those who are doing their military or social service or part-time jobs. So the figure of youth unemployment is estimated much higher than it does appear in the statistics.
The statistics of youth unemployment include persons between the age of 15- 20 and 20 –25.
2. The structural change
After a lack of apprenticeship offers in the Eighties, the situation changed in the beginning of the Nineties: There has been stated a lack of apprentices in some sectors, especially affected was the handicraft one. In 1991, 120.000 offered apprenticeships stayed vacant. But youth unemployment has been constantly high and didn´t drop significantly (Seiring1996: 52). In 1998, still 476.000 less than 25 year-old people have been unemployed (Bundesanstalt für Arbeit).
This development can be explained by a change in the occupational and economic structures with includes direct consequences for the qualification structure.
Since 1975, an increased amount of young matriculated people is looking for a professional formation because of overcharged universities and increased unemployment of academics. A working job had become attractive (Klasen 1979: 11.) But in 1990, for the first time more young people entered university than persons began an apprenticeship (Raab 1992: 36f). At the same time, matriculation became a common school education. As a consequence, firstly matriculation qualifications diminished. Secondly, requirements for an apprenticeship raised which has led to marginalization of young people who haven´t finish their school education. The chances for untrained people to get a job is dropping, while the demand for higher skilled employments is increasing.
So two tendencies can be stated: There exists a lack of sufficiently qualified young people willing to begin an apprenticeship because of its devaluation, and unqualified young people are more and more excluded of the occupational system. To modernize the dual model of professional formation has become increasingly important: The attractivity of an apprenticeship has to be improved and the introduction of support measures are necessary to ensure a successfull formation (Raab 1997: 11, Raab 1992: 37).
II. The problematic nature of the transition: Disparity between the educational and the occupational system
Since 1996 there are again more applicants than apprenticeships offered. In 1996, 4.000 applicants didn´t get a job. In 1997 the situation became worse: Only 613.000 apprenticeships were offered for 635.000 applicants. An especially serious situation is found in the Eastern part of Germany: The relation between offer and demand there is 100 to 112, in the Western part it is 100 to 101 (Berufsbildungsbericht 1998, Süddeutsche Zeitung 1998, December 8th ). On the whole, there has been has been an increase of 3,3% in offered apprenticeships in Germany last year, mostly in industry and trade jobs. Nearly 1% less than in 1996 began an apprenticeship in 1997.
In general, the willingness of offering an apprenticeship increases the bigger the firm is. In enterprises with more than 500 employees only 4% of them are apprentices, in small firms of less than 10 employees 22% are apprentices (Institut der deutschen Wirtschaft 1998).
Most formation beginners with matriculation and a secondary school diploma wish to get formed in the commercial sector, the majority of the ones with Hauptschulabschluß (High School) wish to be formed in handicraft jobs (Berufsbildungsbericht 1998).
The costs for an apprentice has increased constantly and is nowadays at an average of 34.985 German Marks per year. The theoretical education in the vocational schools is to a great part financially supported by the employer, too. But the firms also gain of the apprentice´s performance.The resting amount of 21.458 German Marks is compensated by the enterprises saving costs for not having to search for new employees and not having to work them in. Also aworker skilled in the own enterprise is often more motivated. Besides, the firms gain a good image if they offer professional formation (Bundesinstitut für Berufsbildung).
A successfully finished apprenticeship does not offer a guarantee for a job afterwards. A high percentage of people is obliged to retrain after the apprenticeship. Mis-qualification has become a serious problem in Germany and clearly shows the discrepancy between the formation system and the occupational system. This may be explained by the fast structural economic change and the much slower changes and the more unflexible development in the educational sector.
So the problem of occupation for young people has been transferred: Today the amount of offered apprenticeships is increasing again, but the possibilities of being employed afterwards has diminished to a total of 67%. Especially disadvantaged societal groups are affected to a higher degree by unemployment and lower promotion chances. Those problem groups are women, young people who didn´t get a good school education (Sonderschüler) or didn´t finish their school education and foreigners. They are unproportionally more affected of unemployment (Harten 1977: 13, Raab 1992: 41ff).
Nearly one quarter of the apprenticeships are broken off before having finished the three formation years. The reasons are insatisfaction because of not voluntarily chosen jobs, changes to a better job, or that the employer has stated an unqualified performance of the apprentice. The amount of broken off apprenticeships are extremely high in the handicraft sector (26,7%). Only 6,3% of the apprenticeships in the public sector have been broken off (Statistisches Bundesamt 1998).
III. Educational and Formational Solutions
1. Promotion to increase the willingness of professional formation in the enterprises
Education Federations and unions of the private economy incite firms which are not able or have not been willing to offer an increased amount of apprenticeships. It is promoted that enterprises of different or equal sizes unify their professional formation capacities. Like this, larger firms are qualifying more apprentices than are demanded to unburden firms with low education capacities. Enterprises also profit from each other by exchanging know-how.
2. The Coalition contract of the German gouvernment (October 1998, 20th )
2.1. Alliance for Job Creation: Integration of unemployed young people in the job market
To promote an increase of apprenticeship offers to ensure a qualified professional formation for young people is an obligation for economy and administration (Gouvernment Declaration 1998, October 11)
2.2. Offensive to fight against youth unemployment: An urgence programme for 100.000 young people (November 1998 25th )
Nearly two thousand millions German Marks is going to be spent on formation (school and apprenticeship) and work for young people. The financial support shall be continued in 1999 (1150 millions German Marks). The money is going to be used to increase offers for apprenticeships and to improve qualification and occupational measures for unemployed young people, especially in the Eastern part of Germany and especially for problem groups.
The motto "A future for young people- Education for everybody" includes the willingness that every young person who suffers more than six months of unemployment shall get a job.
Like this, all 35.000 apprenticeship applicants who didn´t get a job this year shall be employed until spring 1999. The programme includes further qualification and subsidies for wage costs. Flexibility is planned to be improved and existing regional job alliances for work shall be integrated and the creation of new ones stimulated.
2.3. Creating jobs by modernizing the dual model of professional formation
The dual model of professional formation shall be put in advance by introducing more flexibility concerning working hours, working rules and education contents to create a greater linkage to the practice in enterprises and to increase efficiency.
3. Critics of the proposals
The Employers´ Union expresses harsh critics concerning the urgence programme. In their opinion, the programme doesn´t attain the cause of youth unemployment. The real necessity consists of creating adequate economic frame conditions in tax, social and scale. To create jobs, enterprises should be relieved from taxes (Hundt: December 1998, president of the Employers´ Union).
In the opinion of the Employers´ Union, the dual model of professional formation still represents the core element for the avoidance of youth unemployment. The Employers´ Union proposes structural reforms like to reduce education costs by freezing in wages or by diminishing the theoretical part of the education and vacation to increase the apprentices working performance. To abolish barriers in the educational system, a better school education and an improved orientation for pupils and apprentices are considered to be of extremely importance.
The dual model of professional formation has entered a crisis. It became clear that increased modernizing efforts will be necessary to ensure its quality in the future. In this context it will be decisive if the new German gouvernment is able to introduce structural changes and reform the educational and occupational system as much as it is necessary and demanded, especially by the Employers´ Union.
Bibliography
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