Perspectives for US-German
Cooperation in Promoting
Skills and Apprenticeship Systems
Dr. Robin Mishra,
Minister-Counselor for Science and Technology,
German Embassy
Dr.
Robin Mishra
Mishra
Dr. Robin
Bridging the U.S. Skills Gap – A Transatlantic Discussion
April 28, 2016
“Let’s also make sure that a high school
diploma puts our kids on a path to a
good job. Right now, countries like
Germany focus on graduating their high
school students with the equivalent of a
technical degree from one of our
community colleges, so that they’re
ready for a job […].
We need to give every American student
opportunities like this […].”
Barack Obama in his 2013 State of
the Union Address
Dr.
Robin Mishra
Mishra
Dr. Robin
Bridging the U.S. Skills Gap – A Transatlantic Discussion
April 28, 2016
“Wherever I go in the world, people tell me that the
German dual system of vocational training has a very good
reputation. It quite obviously results in enormous success.
Yet such success, of course, also requires a long tradition.
Still, many countries would also like to introduce such a
system. The fact that we have the lowest youth
unemployment in Europe can certainly also be traced back
to our training system.”
Angela Merkel at the reception of
German „WorldSkills“participants on
November 3, 2015
Dr.
Robin Mishra
Mishra
Dr. Robin
Bridging the U.S. Skills Gap – A Transatlantic Discussion
April 28, 2016
% of youth labor force
Youth unemployment rate
Source: OECD Labour Market Statistics, October 2015
Dr.
Robin Mishra
Mishra
Dr. Robin
Bridging the U.S. Skills Gap – A Transatlantic Discussion
April 28, 2016
Key factors for success
• Long-standing history of Dual VET
• Highly developed economic structure
• Strong Small and Medium Enterprise (SME) sector
• Interest, commitment and capability of companies to
train
• Strong and competent representation of employer and
employee interests (chambers / labor unions)
• Broad-based acceptance
Dr.
Robin Mishra
Mishra
Dr. Robin
Bridging the U.S. Skills Gap – A Transatlantic Discussion
April 28, 2016
German Embassy “Skills Initiative”
• Kick-off May 2012
• Bottom-up: Identify and spread best practice of German
companies in the US
• German companies: Pioneers and leaders in their
communities
• Win-Win: German companies are helping themselves;
U.S. trainees, business and state benefit as well
• Politically, Germany and the U.S. are friends and allies &
economically key partners in trade and investment in a
globalized world
Objective is to connect the dots and scale up best practice,
NOT to copy the German system to the U.S.
Dr.
Robin Mishra
Mishra
Dr. Robin
Bridging the U.S. Skills Gap – A Transatlantic Discussion
April 28, 2016
The Joint Declaration of Intent
• June 5, 2015: Signing ceremony for a joint declaration of
intent between the U.S. and German governments.
• Declaration promotes cooperation in dual education
training and apprenticeship programs.
Dr.
Robin Mishra
Mishra
Dr. Robin
Bridging the U.S. Skills Gap – A Transatlantic Discussion
April 28, 2016
Follow-up at Hannover-Messe 2016
• April 25, 2016 in Hannover: Secretary of Commerce
Pritzker and German Education Minister Wanka
underline strong commitment of both countries to
strengthen cooperation
• April 26, 2016 in Berlin: Constitution of a Working
Group with US and German Ministries of Education,
Labor and Commerce that will define next steps
Dr.
Robin Mishra
Mishra
Dr. Robin
Bridging the U.S. Skills Gap – A Transatlantic Discussion
April 28, 2016
Potential for U.S.-German cooperation
• Project local demand for trainees
• Develop curricula and training sites
• Develop apprenticeship type schemes
• Market training programs
• Cooperation of U.S. and German training institutions
• Mutual recognition of degrees/qualifications
 Embassy is “convener and facilitator”
Dr.
Robin Mishra
Mishra
Dr. Robin
Bridging the U.S. Skills Gap – A Transatlantic Discussion
April 28, 2016
Example: U.S.-German potential in Pennsylvania
• The State of Pennsylvania is the 20th largest economy in the
world and also one of the nation’s fastest growing exporters.
• 815 German-owned companies that create over 38.000 jobs
• Top three German companies in Pennsylvania are Bayer (1900
employees), SAP (1700 employees), B.Braun (1300 employees)
• Pennsylvania is also a major center for transatlantic trade and
investment
Dr.
Robin Mishra
Mishra
Dr. Robin
Bridging the U.S. Skills Gap – A Transatlantic Discussion
April 28, 2016
Lessons learned
Dr.
Robin Mishra
Mishra
Dr. Robin
Bridging the U.S. Skills Gap – A Transatlantic Discussion
April 28, 2016
Thank you for your attention!
For further information: www.germany.info
Follow @GermanyinUSA @MishraRob on Twitter
Dr.
Robin Mishra
Mishra
Dr. Robin
Bridging the U.S. Skills Gap – A Transatlantic Discussion
April 28, 2016
History
Dr.
Robin Mishra
Mishra
Dr. Robin
Bridging the U.S. Skills Gap – A Transatlantic Discussion
April 28, 2016
The German Educational System - Overview
General Education
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Robin Mishra
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Dr. Robin
3,5 / 6 years
Higher Education
Bridging the U.S. Skills Gap – A Transatlantic Discussion
10 / 13 years
Dual VET
2 - 3.5 years
VET
Schools
2 - 3.5 years
Labor market
Qualified professional work
April 28, 2016
The German Vocational and Educational
Training System (VET)
70% of VET in company
In-company VET
• Legal basis: training contract
• Company, which trains, pays
trainee a „training allowance“
• Company provides training
Dr.
Robin Mishra
Mishra
Dr. Robin
Two coordinated
learning venues
(„Dual“)
30% of VET in VET school
VET school education
• Provided free of charge
• Local government finance s
public VET schools
(facilities, teachers, etc.)
Bridging the U.S. Skills Gap – A Transatlantic Discussion
April 28, 2016
Combining the Worlds of Work and Education
World of Work
World of Education
Occupation („Beruf“)
„Dual“ = 2 learning venues
Company
Employer
Chambers and social partners
Define, supervise and
monitor the what and
how of in-company VET
based on consensus
Dr.
Robin Mishra
Mishra
Dr. Robin
Trainee
Public VET
school
Government (federal and local)
Provides legal framework,
VET research and resources
for school-based VET,
delegates authority to social
partners and chambers
Bridging the U.S. Skills Gap – A Transatlantic Discussion
April 28, 2016
Starting point: The training contract
•
•
•
•
Similar to work contract
Legal basis for in-company training in Dual VET
Provided and registered by chambers
Regulates
• Duration of training
• Beginning and end of training
• Probation time
• Vacation
• Content of training
• Training allowance
• Termination of contract
• Signed by youngster and by training company
establishing a training relationship
Dr.
Robin Mishra
Mishra
Dr. Robin
Bridging the U.S. Skills Gap – A Transatlantic Discussion
April 28, 2016
Dual System (I): Facts and Figures
Trainees
• 1.4 mio. trainees in
330 recognized
training occupations
• High employment
security
• Average training
allowance of about
650 EUR per month
Employers
Government
• 21,3% of German
companies train
• Public expenditure for
Dual VET: 5.9 bn EUR
• More than 500.000
new trainees every year
• Overall net cost of Dual
VET for companies: 5.6
bn EUR (gross cost 23.82
bn EUR)
• Hire 66% of Dual VET
trainees after training
as employees
• Finances 1600 public
VET schools for Dual
VET
Data from
BIBB National VET Report (2013/2014) and Statistisches
Bundesamt
Dr.
Robin Mishra
Mishra
Dr. Robin
Bridging the U.S. Skills Gap – A Transatlantic Discussion
April 28, 2016
Dual System (II): Benefits
Trainees
• Occupational
proficiency
• Earn income
• Learning by doing
• Identification
Employers
• Meeting the needs of the
company (vs. hiring externally)
• Better productivity and
quality
• Positive impact on innovation
• Save recruitment and
retraining costs
• Power to define training
content
Dr.
Robin Mishra
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Dr. Robin
Bridging the U.S. Skills Gap – A Transatlantic Discussion
Government
• Positive impact on
economy and
society
• Saves expenses, e.g.
on labor market
matching
• Ability to
efficiently monitor,
steer and regulate
April 28, 2016
Dual System III: Challenges
Trainees
• Finding a training place
• Increasing demands at
the workplace
• Improving life-long
learning opportunities
Employers
• Finding young people
• Finding competent
trainees
• Including disabled
people, minorities,
refugees etc.
Government
• Countering nationwide
lack of skilled workers
• Dealing with demographic
decrease of population
• Countering trend of more
young people choosing
University
• Dealing with strong
regional disparity
Data from
BIBB National VET Report and Statistisches
Bundesamt
Dr.
Robin Mishra
Mishra
Dr. Robin
Bridging the U.S. Skills Gap – A Transatlantic Discussion
April 28, 2016
The role of the stakeholders
Chambers
• Advise company on VET
• Train in-company trainers
• Assess and certify company
and trainers for in-company
VET provision
• Monitor and control incompany VET (facilities,
instructors, etc.)
• Support company in finding
trainees
• Register training contracts
• Organize interim and final
exams
• Mediate disputes between
trainee and company
• Organize events
Dr.
Robin Mishra
Mishra
Dr. Robin
Social Partners
• Labor unions and
employer assocations
negotiate training
allowance of trainees
• Labor unions offer
trainees advice on incompany VET
• Labor unions monitor incompany VET
Government
• Finances, supervises and
monitors public VET school
system
• Federal government conducts
institutionalized VET Research
• Organizes Dual VET standard
development
• Provides support to
unemployed and
disadvantaged to enter Dual
VET
• Provides support for disabled
people to enter Dual VET
• Provides vocational
orientation and rising
awareness for Dual VET
Bridging the U.S. Skills Gap – A Transatlantic Discussion
April 28, 2016