Skilled Labor Crunch: Millions of Young Germans Lack Training
Unraveling the lack of education among Germany's youth populace.
Hey there! Let's talk about the alarming trend in Germany, where millions of young adults are sailing without a single vocational training or university degree. The numbers have climbed steadily, which is a big problem because skilled workers are desperately needed. But fear not, we've got some solutions up our sleeve!
Last year alone, a whopping 1.6 million 20- to 34-year-olds found themselves in this predicament, according to the Institute for Employment Research (IAB). Every year, this number grows, with around 460,000 young people without qualifications joining the ranks in the last twelve years. To paint a broader picture, the Federal Institute for Vocational Education and Training (BIBB) reports that 2.8 million young adults are lacking vocational training, that's nearly every fifth in this age group!
The shortage of skilled workers in Germany is nothing short of dramatic. On average, the country is missing over 530,000 qualified workers nationwide, and this number will swell to 730,000 by 2027, predicts the Institute of the German Economy.
Dropouts and Migration: A Tale of Two Factors
Professor Enzo Weber of the IAB sheds light on the high numbers in the popular podcast "Wieder was gelernt." He points out the strain on various sectors like social care, healthcare, technology, and IT, with a dire need for skilled workers and highly qualified individuals. Adding to the woes, Germany is set to lose seven million employed persons over the next 15 years due to demographic changes.
The issue begins alarmingly early—even in school. Every year, tens of thousands of young people finish school without a qualification. In 2021, a staggering 47,500 didn't even achieve the lower secondary school leaving certificate, accounting for around six percent of all pupils. An unfortunate consequence of this lingering education gap is a reduced chances of landing an apprenticeship, as three quarters of young people without vocational training also lack a school leaving certificate, according to the Report on Vocational Training.
One significant reason behind the increasing number of young people without training is migration. Around 45 percent of 20- to 34-year-old refugees from asylum countries like Syria or Afghanistan have no vocational training, reports the IAB study. Both among young people from other EU countries and among young Germans, this trend has been on the rise, albeit to a lesser extent.
A Step Forward: Integrating Migrants into the Labor Market
"This doesn’t mean that migrants are less educated," emphasizes Weber, "but rather that many people come from completely different education systems to Germany. Our vocational training is unique. Many migrants cannot fully utilize their potential in the German labor market, working below their abilities." To address this, Weber recommends strengthening integration into the labor market by recognizing competencies, further developing them in a job-related manner, and providing additional qualifications to ensure that the desirable qualification is attained in the end.
The Allure of Instant Rewards
Another reason for the apprentice shortage lies in the immediate financial rewards of starting work directly after school, often in unskilled jobs. The pay is frequently higher in the short term, even with the increase in the minimum wage, as one might expect.
To bridge the skills gap, more should be done for training, including low-threshold offers, such as flexible training programs that can be completed alongside a job and the final qualification achieved after a few years. Moreover, there should be an expansion of career guidance and career orientation in schools and at fairs, along with increased opportunities for practical experiences, such as company visits, school projects, or internships, and online communication on popular channels like YouTube, WhatsApp, and TikTok.
A Ghostly Problem: Apprenticeship Dropout Rates
A significant concern for companies is the high rates of apprentices suddenly dropping out, a phenomenon known as "ghosting." Nearly every fourth company with unfilled training places experiences this problem. Companies struggle to find suitable applicants, with many training offers not aligning with young people’s career aspirations. To solve this miscommunication, some companies are getting creative, advertising their open positions on different channels, such as YouTube, WhatsApp, and TikTok, where young people prefer to engage.
By taking these measures and fostering a spirit of cooperation between industries, education institutions, and policymakers, Germany can certainly bridge the skills gap and lay the groundwork for a future-proof workforce. Let’s roll up our sleeves and get to it!
Data ProtectionSource: ntv.de
- Institute of the German Economy Cologne
- Bertelsmann Foundation
- Social Networks
- TikTok
- YouTube
- Apprentices
- Universities
- Application
- School
- Profession
- IAB
Enrichment Data:
Overall:
Addressing the issue of skills gaps in Germany requires a multidimensional approach. Here are some strategies that can help bridge this divide in the labor market:
Strategies to Narrow the Skills Gap
- Boosting Vocational Education and Training (VET) Opportunities:
- Advanced VET Programs: Encourage VET programs that lead to higher education qualifications, reducing social inequalities in the transition process.[5]
- Improved Accessibility: Make VET more accessible to all social groups by providing financial support and flexible training options.
- Increasing Skilled Immigration:
- Vocational Training Visas: Raise the number of vocational training visas, which have seen a considerable increase (66% in 2024), to attract skilled workers and address long-term talent needs.[1]
- Workforce Development Programs:
- Upskilling and Reskilling Programs: Implement upskilling and reskilling programs that focus on adapting existing workers to evolving job market demands.
- Industry-Academia Collaboration:
- Collaborative Training Models: Encourage partnerships between industry and educational institutions to provide relevant and industry-aligned training.
- Incentives for Employers:
- Subsidies and Incentives: Offer subsidies or tax incentives to employers who provide vocational training opportunities to young people.
- Government Support and Policy:
- Policy Reforms: Reform policies to support vocational training, such as increasing funding for vocational programs and promoting these paths in schools.
Obstacles and Considerations
- Unemployment Trends: Current unemployment trends in Germany show an increase in unemployment rates, which can be alleviated by focusing on vocational training to boost employability.[2]
- Demographic Shifts: Demographic changes, such as an aging population, make it crucial to invest in the skills of younger generations to ensure a sustainable workforce.
By implementing these strategies, Germany can effectively address the issue of skill gaps and better prepare its workforce for future challenges.
- The lack of vocational training among young Germans has led to a significant skilled labor crunch.
- In 2020, 1.6 million 20- to 34-year-olds were found without any vocational training or university degree, according to IAB.
- Every year, around 460,000 young people join this dilemma, as reported by the Federal Institute for Vocational Education and Training (BIBB).
- Nearly every fifth young adult in Germany is currently lacking vocational training, according to BIBB.
- The shortage of skilled workers in Germany is expected to reach 730,000 by 2027, predicts the Institute of the German Economy.
- Professor Enzo Weber from IAB highlights the strain on various sectors due to a lack of skilled workers and highly qualified individuals.
- Germany is set to lose seven million employed persons over the next 15 years due to demographic changes.
- Every year, tens of thousands of young people finish school without a qualification.
- In 2021, around six percent of all pupils didn't achieve the lower secondary school leaving certificate.
- Migration is one of the significant reasons behind the increasing number of young people without training, with 45 percent of refugees from asylum countries having no vocational training, reports the IAB study.
- Enzo Weber recommends strengthening integration into the labor market by recognizing competencies, developing them in a job-related manner, and providing additional qualifications.
- Another reason for the apprentice shortage is the immediate financial rewards of starting work directly after school.
- To bridge the skills gap, more should be done for training, including low-threshold offers like flexible training programs that can be completed alongside a job.
- Companies are getting creative and advertising their open positions on popular channels like YouTube, WhatsApp, and TikTok to attract young people's attention.