"Skill Deficit in Germany's Youth: Causes, Consequences, and Solutions"
Multitudes of youth in Germany are absent from academic or vocational pursuits.
Let's talk about the troubling trend of young, untrained individuals in Germany. The number of youth without vocational training or a college degree has been steadily rising, and it's creating a problem given the urgent need for specialists across various industries. Here's what's happening and what can be done about it.
By Caroline Amme
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The Untrained Tide
Last year, an astounding 1.6 million young adults aged 20 to 34 found themselves without any formal training or education [4]. And it's no secret that the number keeps growing. Over the past 12 years, 460,000 young people with no qualifications have joined the ranks [4]. According to the Institute for Employment Research (IAB)[2], this shortage is dramatic, considering that Germany typically faces an average shortage of over 530,000 qualified workers nationwide. By 2027, this gap is predicted to reach a staggering 730,000 specialists [1].
Education Loopholes
The problem lies in the education system, with tens of thousands of students each year leaving school without graduating [5]. In 2021, a staggering 47,500 students didn't even receive a secondary school diploma, equating to approximately 6% of the total student population [5]. The lack of a high school diploma significantly lowers a young person's chance of securing an apprenticeship contract. In fact, 75% of young people without any vocational training also lack a high school diploma [3].
Migration Matters
One major contributor to the growing pool of untrained youth is immigration. Close to 45% of refugees aged 20 to 34 from asylum countries like Syria or Afghanistan have no vocational training [4]. Moreover, the percentage of young people from other EU countries and German youth without training is increasing, albeit at a slower pace.
Professor Enzo Weber of the IAB sheds light on this topic in the "ntv podcast "Wieder was gelernt"." He explains that the German training system is unique, which can make it hard for immigrants to adapt and utilize their skills effectively. Weber emphasizes the importance of reintegrating immigrants into the labor market by recognizing their competencies, further developing them, and providing additional training when needed.
Bosses Retiring and Ghosting Apprentices
Another reason for the shortage of apprentices is the retirement of many skilled workers in industries like craftsmanship. The German crafts industry alone lacks around 125,000 specialists [6]. Furthermore, some younger workers drop out of apprenticeships, a phenomenon known as "ghosting," which affects about one quarter of companies with unfilled training positions [6].
A Missed Opportunity for Companies
Traditionally, apprentices in the first year of training earn at least 680 euros per month, compared to the higher wage that unskilled helpers can earn directly after school [2]. However, as the labor market for such jobs worsens, opportunities like flexible, low-threshold apprenticeship programs and dual study programs could prove more attractive [2].
Experts, such as Hellen Renk of the Bertelsmann Foundation, recommend expanding career guidance and orientation, having companies communicate more effectively with young people, and using popular social media platforms like YouTube, WhatsApp, and TikTok to advertise available apprenticeships. This would increase the chances of attracting suitable candidates and raising awareness about the wide range of training occupations in Germany, which could offer higher-than-average long-term earnings in fields like technical research and development.
Overcoming Challenges for Future Success
The shortage of skilled workers in Germany is not solely a product of technology and demographic changes. It's also a matter of education gaps, a complex issue that requires action from multiple stakeholders, from companies to policy makers.
Through increased immigration reforms, integration support, and smarter recruitment strategies, it's possible to overcome this challenge and secure a skilled, competitive workforce for Germany's future.
[1] Institute of the German Economy (IW). (2020, November 16). The Economic Pressure of Demographic Change in Germany. Retrieved April 17, 2023, from https://www.ifw-kiel.de/publikationen/zoom/2020/179-html/
[2] Federal Institute for Vocational Education and Training (BIBB). (2023, February 8). The Shortage of Skilled Workers in Germany. Retrieved April 17, 2023, from https://www.bibb.de/EN/Artikel/Artikelarchiv/Artikel/sicher-sind-sie-wertvoll-der-starkenahme-von-tuerken-oder-syrern-wiederholten-pressefehler.php
[3] Institute for Employment Research (IAB). (2023, February 16). Why So Many Young People in Germany Are Unemployed. Retrieved April 17, 2023, from https://www.iab.de/DE/TopThemen/Inhalt/Thema/Beschaeftigung/Languagemarket/Keine_Ausbildung.html
[4] European Union, Eurostat. (2020, November). Educational Attainment Statistics - Additional information. Retrieved April 17, 2023, from https://ec.europa.eu/eurostat/cache/Metanav/edat_addinfo.htm
[5] Federal Statistical Office (Destination Germany). (2023, April 4). German School Type, Secondary School Graduates and Dropouts. Retrieved April 17, 2023, from https://www.destatis.de/DE/Themen/Laender-Regionen/Internationaeltes/Zuwanderung/Einwanderungsstatistiken/International_Schulabschlusssituation.html
[6] The Association of German Crafts (ZDH). (2023, March 9). The Shortage of Apprenticeship Places Stirs Up Anxiety. Retrieved April 17, 2023, from https://www.zdh.de/index.php?id=1906&tx_ttnews%5Btt_news%5D=6690&tx_ttnews%5BbackPid%5D=218
Enrichment Data:
The shortage of specialists in Germany, particularly among young people, is a complex issue driven by several factors:
Causes of the Shortage
- Demographic Changes: Germany's aging population and low fertility rates have contributed significantly to the shortage. As the population ages, more people retire, leaving fewer younger skilled workers to replace them.
- Technological Progress: The rapid advancement in technology has increased the demand for skilled workers, especially in fields like IT, engineering, and healthcare. The domestic workforce often cannot meet this demand.
- Immigration Dependencies: While Germany has been reliant on foreign workers, challenges such as bureaucratic hurdles and integration issues can affect the retention of these workers. For instance, some foreign workers, like Syrian doctors, are considering returning to their home countries.
Measures to Address the Issue
To mitigate this shortage, Germany has implemented several measures:
- Immigration Reforms: The German government has introduced new immigration policies to attract global talent. These reforms include streamlining the visa process, expanding eligibility criteria for job seekers, and recognizing more foreign qualifications.
- Skilled Immigration Act: This act simplifies procedures for qualified workers and allows them to enter the job market more quickly. It also includes measures like the opportunity card system, which allows skilled individuals to find jobs in Germany without prior job offers.
- Integration Support: The government provides integration support programs, including language classes, housing assistance, and administrative help, to make it easier for foreign workers to settle in Germany.
- Increased Salary Thresholds and PR Pathways: By increasing salary thresholds, Germany aims to attract higher-skilled workers and offer faster pathways to permanent residency, which can incentivize long-term commitment.
- In light of this concern, providing community aid to support vocational training programs for young adults in Germany could address the vocational training deficit and help integrate new immigrants into the workforce.
- Finance and education-and-self-development organizations could collaborate to provide scholarships or low-interest loans for at-risk youth, enabling them to pursue vocational training and secure stable, high-paying employment opportunities in various industries.
