Record-breaking surge in apprenticeships.
Filling the Void: Germany's Ailing Apprenticeship Market
In a troubling turn of events, nearly half of German businesses couldn't fill all their apprenticeship vacancies last year - a staggering jump from 2018 figures, indicating that the COVID-19 pandemic has dealt a severe blow to the German apprenticeship market. Achim Dercks, Deputy CEO of DIHK (Germany's Association of Chambers of Industry and Commerce), explains that over a third of these companies received no applications at all, painting a disconcerting picture.
In 2018, 32 percent of companies grappled with unfilled apprenticeships, yet this number ballooned to 42 percent in 2021. The industry excluding construction witnessed a particularly alarming increase, soaring from 33 to 50 percent. The hospitality industry faced an equally daunting challenge, with the percentage of unfulfilled apprenticeships rising from 56 to 67 percent, while the transport and logistics sector saw a rise from 40 to 54 percent. Interestingly, the business-oriented services sector kept steady at 26 percent, remaining unchanged from 2018.
The most common obstacle for filling apprenticeship positions? A complete lack of applications - a trend that has become more pronounced since 2018, with 36 percent of companies reporting this issue in 2021 as opposed to 30 percent in 2018. Dercks asserts that expanding COVID-19-related restrictions are responsible for this growing disparity between apprenticeship opportunities and interested young people. The restrictions have made career orientation, guidance, and apprenticeship searches a steep uphill battle. With career counselors no longer able to attend schools, and apprenticeship fairs and internships cancelled, many young people find themselves adrift. Dercks believes this further fuels a sense of unease among the youth.
However, Dercks points out that businesses are acutely aware of the importance of career orientation and, in collaboration with the chambers, have devised innovative digital formats during the pandemic to offset the loss resulting from school and employment agency offers.
According to the DIHK survey, 75 percent of apprenticeship providers are eager to boost their focus on career orientation in the future, with half planning to offer more student internships, roughly 38 percent intending to organize events, and 25 percent eyeing stronger digital information offerings. Dercks comments, "Companies have thrown open their doors and gates, welcoming the next generation with open arms."
Shining a Light on the Issue
Tackling skill shortages is a persistent concern in Germany, with industries like engineering, manufacturing, and construction experiencing significant gaps. Draftsmen, in particular, are in high demand due to the emphasis on sustainability and energy efficiency. The country's robust economy results in a high demand for skilled workers, but the issue lies in the aging population and changing workforce dynamics potentially leading to widening skill gaps.
The COVID-19 pandemic has undoubtedly added to the challenges faced by the apprenticeship sector, potentially affecting recruitment and training due to safety concerns, remote work arrangements, or economic uncertainty. Responding to these difficulties, many companies have increased apprenticeship remuneration, offered flexible training programs, and used promotion and awareness campaigns to attract more candidates. Government support through incentives, subsidies, or tax benefits can also play a vital role in encouraging more participation in apprenticeships.
In light of Germany's ailing apprenticeship market, it is crucial for businesses to bolster their focus on career orientation and education-and-self-development, to attract more young individuals to apprenticeships in various sectors like engineering, manufacturing, and construction. It's worth noting that finance plays a significant role here, as many companies have addressed apprenticeship shortages by increasing remuneration for apprenticeship positions.
