You’re hired!
Civitas, 8 February 2011
Vince Cable yesterday marked the beginning of National Apprentice Week by announcing that the Government would increase annual funding for on-the-job training by £222 million to take the total to £1.4 billion. It was hoped that this, coupled with encouraging firms to take on more apprentices, would increase the total number of people enrolled on such schemes to 400,000 by 2014/15. Such a move may indicate that the Government wants to make apprenticeships a more important aspect of British education and employment. If this is the case, the Government would be advised to examine the German dual apprenticeship system which has been an integral part of that country’s education system and labour market since the 19th century.
The German ‘dual’ apprenticeship system, like the British scheme splits the time of the apprentice between education and on-the-job training, with around 50-70% of the apprentice’s time spent in the workplace. There are around 350 recognised trades in which apprenticeships can be undertaken, with a third of German companies offering apprenticeships and around two thirds of young people undertaking one. Clearly the German system is unusually extensive compared to that of other countries, what insights can it offer the British Government?
Importantly the German system provides apprentices with a broad, skills-based education. It was a criticism of the system in the 1960’s that the education and training provided was too narrowly focused on the requirements of certain firms rather than general industries. Furthermore it was recognised that the on-the-job training needed to be complimented with reasonably wide vocational training, to ensure that apprentices had a broad skillset which could be utilised by a range of employers. The British scheme must ensure it offers apprentices a broad vocational education, yet an appropriate degree of specialisation to make apprentices attractive to potential employers. Although a fine balance, this is one which the British Government must endeavour to get right.
The German system has sometimes been beset by a mismatch between supply and demand in terms of apprentices. At times there were more places than prospective apprentices and sometimes vice versa. Vince Cable has made it clear he wishes to increase the supply, and is encouraging more firms to create apprenticeship schemes, this is important in the short-term. However, in the long-term it is important that demand keeps pace with supply, and more importantly that the demand is appropriate. The German system benefits from the fact that it is highly respected and highly thought of. Since 1950 the system has gone from one which provided training for those who left education at 15 to a system which increasingly attracted those with university entrance certificates. Importantly, the German system caters for a range of abilities, those with a fewer academic qualifications can access apprenticeships appropriate for them while more academic candidates are still catered for. It is important that British apprenticeship schemes are attractive and seen as respectable, it is equally important that a range of abilities are catered for, and that apprenticeships are not seen as a second-rate choice for those who cannot get into university.
The German system has only achieved its scale and success by being accepted by employers and industries as a valuable way to hire staff. Although it has been discussed, it has never been mandatory for all businesses to contribute to the funding of the system. Only those businesses who want to take on apprentices or fund apprenticeships do so, and it is testament to the attractiveness of apprentices that around a third of German businesses do. The British Government needs to ensure that it works closely with businesses in devising schemes and ensuring that schemes lead to recognised qualifications, qualifications that will significantly improve the employment prospects of apprentices in the trades they have qualified in. If this is not the case then businesses will not want to employ apprentices and apprenticeships will not be attractive to young people.
It is welcome that the Government has recognised that technical and on-the-job training is a necessary component of a successful economy, and that apprenticeships can form an important component of this. However, for the UK’s apprenticeship scheme to be truly effective and achieve success in the long-term, the Government must ensure that the scheme is attractive to students of a wide range of abilities, is attractive to employers, and provides participants with general skills alongside specialist training. Apprenticeships should lead to recognised qualifications, helping more young people find work, and providing the British labour market with a wider skills base.