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Growth regions use continuing training to expand their location benefits

Stefan Koschek

Translated by: Martin Kelsey (Global-Sprachteam)

The consequences of demographic change are already leading to problems in the coverage of skilled worker requirements in individual regions, particularly in the East of Germany. For this reason, the question arises as to whether counter-measures can be taken in the form of targeted investment in continuing training for the so-called skills reserves. This year's Continuing Training Monitor (wbmonitor) provides a basis for representing the extent to which any recent changes in the participant structure have been recorded in this regard from the provider point of view.

wbmonitor is a national online survey of continuing training providers conducted each year in May by BIBB in conjunction with the German Institute for Adult Education - Leibniz Centre for Lifelong Learning (DIE). 1,700 continuing training institutions took part in the 2011 survey, which focused on "Continuing training providers and demographic change". The information provided by the participants was weighted and extrapolated to the total statistical population of continuing training providers known to exist on wbmonitor at the time when the survey took place (15,200).

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Regional economic strength influences demographic development

There is a close correlation between regional changes in the structure of the population and respective economic development (cf. Berlin Institute for Population and Development 2011). Whereas economic centres predominantly located in the federal states of the former West Germany attract younger workers and offer good prospects for starting up a family, structurally weak regions exhibit migration losses, particularly in the case of young people who are commencing training or who are at the threshold to career entry. Wide areas of the federal states which made up the former German Democratic Republic, where a bottleneck in the supply of skilled workers already exists as a consequence of low birth rates in the years following German reunification, are particularly affected (cf. ARENT/NAGL 2010). This may lead to a further weakening of the economic power of these regions. In order to combat this spiralling development, both the Federal Government and the federal states have introduced targeted funding instruments over recent years with the aim of tapping into the skills reserves. The plan is to use continuing training as a vehicle for mobilising older employees, the low skilled and migrants in order to make such workers effective members of the labour market. The data from the 2011 Continuing Training Monitor is of assistance in highlighting the extent to which these developments have actually led to a shift in participant structure at continuing training providers.

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Continuning training providers and demographic change

The 2011 Continuing Training Monitor asked continuing training providers about the extent to which they had recorded a change in participation over the past five years by groups of persons considered to form part of the skills reserves. In order to identify regional differences, three regional classes were formed on the basis of context data relating to population development (cf. Figure 1).1 The class of shrinking regions in which economic power is comparatively low (coloured dark blue in Figure 1) covers large areas of the federal states of the former East Germany with the exception of the metropolitan areas of Berlin/Potsdam, Dresden and Leipzig as well as stretching across central Germany as far as the eastern Ruhr and containing the Saarland, another area affected by post-industrial structural change. It also includes peripheral rural regions in northern Bavaria. Constant population development is recorded in wide areas of South Germany and in the North West in particular (medium blue). Regions experiencing population growth include economically strong metropolitan areas such as the axis extending from Munich to Nuremberg, Hamburg and its hinterland, the Cologne/Bonn region, Potsdam and surrounding area and the far South West (light blue).

 

The following presentation of results only accords consideration to regions where population is declining or increasing. As Figure 2 makes clear, only providers in regions with population growth are recording significant increases in participants (net total >=20) across all groups of persons. Unemployed skilled workers, who in many cases, however, are likely to find their way back into employment even if they do not undergo continuing training, constitute an exception in this regard. The highest levels of growth can be shown to occur amongst migrants who, in line with the greater potential they display in terms of number of persons, are especially being mobilised in regions of economic prosperity.

 


A change of trend has clearly taken place with regard to the continuing training participation of older workers. Providers are recording a significant increase in the involvement of such employees both in regions where population is growing and declining. The reason why even more providers are recording this development in regions where population is falling is likely to be the accelerated rise in the number of older workers as a proportion of the population. In regions where population is falling, a stronger increase in participation in continuing training is otherwise only discernable amongst low skilled unemployed persons. In the case of unemployed skilled workers, providers even report a significant reduction which is clearly taking place in the wake of a decrease in funding from the Employment Agencies. This shows that, irrespective of the prevailing structural circumstances regionally, low skilled unemployed persons are increasingly becoming the focus of labour market oriented continuing training support.2
By way of contrast, greater numbers of low skilled persons in employment, at whom many funding instruments at both federal Government and federal state level such as the continuing education grant are aimed, could only be recruited for continuing training in regions where there was growth.

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Mobilisation of skills reserves primarily in regions where there is growth

It is clear that over the past five years investments in the continuing training of the skills reserves on the labour market have increased to a greater extent in regions which are economically stronger and where population is increasing than in areas where population is shrinking and which are structurally weaker. In the case of the latter, continuing training has not thus far been able to provide a sufficient overall contribution to covering skilled worker requirements, although these are precisely the areas where a shortage of skilled workers is reported. Against this background, the stronger decrease in continuing training participation by unemployed skilled workers in regions where unemployment remains also represents a movement in the wrong direction.  If these developments continue, there is a danger that the location disadvantages of regions where population is declining will exacerbate and that differences in social structure at a regional level in Germany will intensify.

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Literature

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footnotes:

  Alignment of regions to the classes of shrinking population (a decline of more than 1%), constant population (+/-1%) and growth in population (an increase of more than 1%) took place at the level of 96 regional planning areas. The data used is taken from the 2009 "INKAR" Collection (Indicators and Maps for Regional and Urban Development in Germany) produced by the German Federal Office for Building and Regional Planning and refers to developments from 2002 to 2007.
2   The net total of providers serving this group of persons - providers which are predominantly financed by the Employment Agencies - is +48.

Last modified on: February 15, 2012

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Publisher: Federal Institute for Vocational Training (BIBB)
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