The Current Situation on the Vocational Training Market
The data situation with respect to 'supply' and 'demand' in vocational training
Naomi Gericke, Stephan Kroll, Klaus Troltsch and Joachim Gerd Ulrich
Assisted by: Elisabeth M. Krekel, Markus Linten and Christina Widera
URN: urn:nbn:de:0035-0300-8
Trainee crisis in eastern Germany" (Bild newspaper on 2 June 2008)These and other warning reports made the headlines in the daily press during the summer of 2008. The reports sounded strange in light of the fact that talk up to that time was - at most - about a major shortage of training places and not about a shortage of applicants. In years past, firms in Germany's eastern states were inundated with applications. But now many reported that they could count the number of incoming applications on just one or two hands. The first preliminary placement figures for the 2007/2008 reporting year released by the National Pact for Career Training and Skilled Manpower Development on 13 October 2008 also point towards a turnaround on the training market: "In some ... occupations, it will be increasingly difficult to fill all of the available training places".01 In fact, some 2,800 training places for in-company vocational training in Germany's eastern states remained vacant - the largest number since the early 1990s.
"Apprentices desperately sought in eastern Germany (Die Welt newspaper on 3 June 2008)
"Many firms in the eastern states are left empty-handed" (Frankfurter Allgemeine Zeitung newspaper on 18 August 2008.)
The massive demographic slump is the reason why it is increasingly difficult to fill vacant training places in the eastern states. The number of young people in Germany has declined sharply and this trend has now reached the vocational training market. Only 137,900 training place applicants were registered in eastern Germany in 2008, some 48,500 (26%) fewer than just one year earlier. Of this 137,900 only 56,700 were just fresh from secondary school (in other words, had completed their secondary schooling during that placement year). Ten years ago, this figure was 143,600. The majority of the applicants from eastern Germany in 2008 were older youths who had left secondary school some time ago (77,800) - many of whom had not had any success to date in landing a training place.
This demographic trend at least further improved the chances of training place applicants in Germany's eastern states in 2008 (Chart 1). All in all, 54% found a vocational training place (2007: 51%) and only 3% were classified as 'unprovided' (applicants who did not end up with a vocational training place or an alternative to vocational training) at the end of the reporting year. The unprovided rate was 5% a year earlier. On the other hand, the share of youths in the eastern states who are undergoing vocational training is not nearly as sizable as these figures or the above newspaper headlines would seem to indicate. Although many applicants had been placed at least for the time being, this often took the form of alternatives - such as a practical or prevocational training - that do not lead to full vocational qualification. Some of the individuals who opted for an alternative to in-company vocational training wanted to switch to in-company vocational training as quickly as possible, even at the end of the reporting year. The number of applicants who were still looking for an in-company training place at the end of the reporting year - 13,900 - was therefore much greater than the number of vacancies (2,800). The number of training place seekers would have been considerably larger if 12,800 applicants from the eastern states had not been placed in extra-company training places that lead to full vocational qualification. Thus the data for 2008 provide an ambiguous and in some cases seemingly contradictory picture of the vocational training market in Germany's eastern states. On the one hand, it is increasingly difficult for firms to find applicants for their training places. On the other hand, the number of youths who do not succeed in finding an in-company training place continues to be quite high. Apparently it is becoming harder to match supply with demand.

The data point to similarly mixed conclusions for the western states: Here too the number of youths is declining, albeit at a slower pace than in the eastern states. A total of 482,100 training place applicants were registered in the western states, some 65,200 (-12%) fewer than before. The number of vacant in-company vocational training places grew to 16,700, the highest level since 2002. There were regions, particularly in the southern parts of Germany, where there are already more in-company training places being registered than training place seekers; in some Employment Agency districts (such as Munich and Rosenheim), more than 10% of the registered in-company training places remained vacant. Nonetheless, 82,400 training place applicants in the western states were still looking for a training place at the end of the training year, including 10,100 unprovided individuals (who did not have an alternative option to date) and 72,300 who are currently participating in an alternative to in-company vocational training (such as vocational preparation schemes) but continue to look for an in-company training place.
In 2008, the number of in-company vocational training places nationwide that were registered with the Federal Employment Agency for placement exceeded the number registered in 2007 by more than 10,000 (eastern states: +4,000, western states: +6,300). It can therefore be hoped that the number of in-company training contracts rose in 2008, as it did in the two previous years. The fact that trade and industry, the skilled trades and the liberal professions registered some 9,200 new training contracts up to 30 September would also seem to support this hope. The figures from trade and industry, the skilled trades and the liberal professions include training contracts for both in-company vocational training and extra-company vocational training. However, given that a decline in extra-company training can probably be expected in 2008 (the Federal Employment Agency reports that the number of registered extra-company vocational training places declined by 9,200), the in-company side was probably responsible for the gain in the number of training contracts registered to date.
However, it will be December before the actual number of new training contracts signed during the period from 1 October 2007 through 30 September 2008 is known 0 after BIBB has completed its regular survey of relevant bodies regarding new training contracts. These bodies comprise the agricultural sector, public sector, domestic services sector and the maritime shipping industry in addition to trade, industry, the skilled trades and the liberal professions. A final count cannot be obtained any earlier because many training contracts that are signed during the above period are forwarded to the relevant authorities some time between early October and the end of November and can be counted only then.
(For more about the results for 2007, please see: http://www.bibb.de/de/14492.htm.)
In light of reports of applicant shortages, particularly in Germany's eastern states, and the emerging difficulties of matching training place supply with training place demand, the Federal Ministry of Education and Research asked the Federal Institute for Vocational Education and Training (BIBB) in August 2008 for an expertise on the current and future situation on the vocational training market, with a focus on the eastern states. The findings from this expertise are presented below:







