The German vocational education, known for its dual training system, has been deemed a key driver of the country’s economic development.
The system, which combines theory taught in public schools with job training at private companies, has also adapted to the development of the digital age, focusing on artificial intelligence (AI) and other innovations.
DUAL TRAINING FOR TECHNICIANS
The dual vocational training typically runs between two and three and a half years, depending on the chosen profession, according to Germany’s Standing Conference of the Ministers of Education and Cultural Affairs (KMK).
The program is generally accessible to everyone. However, KMK suggested that most trainees start their training with a secondary school diploma or even a university entrance qualification.
Under the dual system, trainees split their time between vocational schools and companies.
Germany’s Ministry of Education and Research reports that there are currently around 330 recognized occupations that require formal training.
The training process, examinations and certifications are standardized nationwide across all industries, which ensures that apprentices receive consistent training regardless of the region or company.
According to data from German Economic Institute (IW), the median monthly salary for professionals with vocational training in 2023 stands at some 3,500 euro (3,700 U.S. dollars), with some occupations earning even over the average monthly salary of 4,300 euro (about 4,500 dollars) for full-time workers.
Vocational careers in Germany, ranging from skilled trades and sales to agriculture, enjoy societal respect. Also, many apprentices can pursue university degrees.
AI-INDUCED CHANGES
In recent years, Germany, like many other countries, has been grappling with a pronounced shortage of skilled professionals in the digital sector.
An IW report forecasts that by 2027, nearly two thirds of AI-related positions may go unfilled in Germany for lack of qualified workers.
To address this talent shortfall, major German companies including BMW, Siemens, and Zeiss are revamping their vocational training programs on digitalization and AI.
“Making the BMW Group electric, digital and circular means for us, the training is also continuously carried out in accordance with current requirements,” said Moritz Kippenberger, head of HR services, recruiting, qualification at BMW Group.
Fabian Stephany, a lecturer in AI & Work at the Oxford Internet Institute, said in an interview with Handelsblatt that the salaries for AI professionals can exceed those of master’s degree holders and even rival those of PhD graduates.
NEW CHALLENGES
Germany faces ongoing challenges in filling apprenticeship positions and adapting training programs to include digital skills.
“The dual vocational training system has ensured a steady supply of skilled workers and has served as a model internationally. However, over the past 15 years, it has steadily lost significance, and the training market has shifted from one where employers offer positions to a ‘candidate’s market’ where applicants have more choices,” said Bernd Fitzenberger, director of the Institute for Employment Research (IAB).
According to data from the Federal Statistical Office, 479,000 new dual training contracts were signed in Germany in 2023, up by 2.1 percent increase year-on-year but down by 8 percent compared to 2013.
Fitzenberger attributed the decline in applicants for dual vocational training to, among others, a long-standing trend of young people opting for higher education instead of vocational training.
“The uncertainty caused by the COVID-19 crisis has made it even harder for many young people to decide on a specific career path. Despite a large number of unfilled training positions, many young people interested in training are unable to find a position in their desired field,” he said.
“The mismatch between job offers and applicants’ qualifications is growing, and the transition between education and employment is now more difficult than in the past, despite excellent job market prospects for young skilled workers,” he added.
This mismatch also explains why the country’s digital transformation in vocational education proves to be so challenging. The report “Apprenticeship Recruiting Trends 2024” (Part 2) indicated that while many apprentices expect to learn about AI during their training, fewer than 10 percent of German companies currently offer such training, and only 26 percent plan to do so.
Study initiator Felicia Ullrich expressed concerns over this situation, saying that AI “is not just a buzzword or something as simple as ChatGPT”. The lack of practical AI training in companies is a “serious oversight”, Ullrich said.
Progress in internal training related to digitalization within German companies remains insufficient, she said, calling for more efforts to meet the growing demand for digital talent. ■