Germany Skills Initiative Briefing SETC September 2013
Today s Objectives Overview of the Skills Initiative and the July Information Tour Overview of German Dual Vocational System Highlights from the Trip Key Take Aways and Next Steps for New Jersey
What is the Skills Initiative? Sponsored by the German Embassy to Bring together German and American businesses and local education/training providers with the aim of developing training programs best suited to businesses needs Identify and spread best practices in sustainable workforce development in the USA Help fill more jobs with capable, well trained people Skills Initiative is a win win idea. Everyone benefits. German American cooperation in workforce skills development will provide opportunities in local communities across the USA for good jobs, quality training and businesses that succeed in the US and global markets. Ambassador Peter Ammon
July 2013 Information Tour Goal: To give American government, business, labor, education leaders a first hand impression of the German Dual Vocational System a major factor in Germany s impressive economic achievements. Attendees from NJ, MD, AZ, OH, MN, PA and USDOE as well as national IBEW and AFL CIO
Why Should NJ Pay Attention? This is a great opportunity for New Jersey to continue our work to grow, maintain and train a skilled manufacturing workforce. There are more than 100 German owned companies located in New Jersey and they see the need for a robust skills based training program in the US and specifically in NJ to enable their US based workforce to stay competitive. German owned companies account for over 36,000 jobs in New Jersey.
New Jersey s Talent Connection Key Sectors Talent Advisory Councils Talent Networks Core Value 1: Driving Investments Based on Industry Needs Metrics Balanced Scorecard, Dashboards And Evaluations Core Value 4: Increasing System Accountability Jobseeker Services Jobs4Jersey.com/OnRamp Jersey Job Clubs Jobs4Jersey University Effective Job Search Techniques Core Value 2: Meeting Jobseekers Where They Are Training and Placement On The Job Training Work Experience Programs Registered Apprenticeships Vocational Training Foundational Skills Core Value 3: Equipping the Workforce for Employment
German System from school to work
German Educational System Over 60% go Vocational route Only 30% go to University Decision made by 10 th grade
German Master Crafts Guild Tradition Education is valued Vocational Education is valued All tuition is free Learning is life long
The Dual System Training in Companies and Schools 2 3.5 Years Training Period on the job training in companies 3 4 days a week based on training contract between company and trainee theoretical training in vocational schools 1 2 days a week run by the state 12.09.2013
Today Countries with dual vocational system have lowest youth unemployment rates Germany, Belgium, Austria In Germany minimal drop outs, no drug problem, no student debt
Today
12.09.2013 Learning is Life Long
Dual Vocational System Advantages For Student Apprentices Apprentices immediately involved in work and learning is aligned to work Well planned/structured transition from school to work 3 year training contract with employer ends at examination and can be renegotiated for an additional year or as a permanent hire Prepares for lifelong learning For the Employer Company has 2 3 years to determine fit and inexpensive labor costs during this time Provides training for required professions Employees are well trained with general knowledge of the company and specific knowledge in one area For Society and the Economy Employers finance the system (27/30 billion cost) and are responsible for the training Avoids overproduction of wrong skills Training of qualified workers tailored to the needs of the labor market and the economy System is open to all
Key Success Elements 1. Cooperation between state, trade unions and industry 2. Learning within the workplace theory and practical are linked 3. Acceptance of national standards 4. Institutionalized research and consultancy for labor market, employment 5. Deeply imbedded in the culture 6. Student Contract is with Employer, not School; 7. Well planned and structured transition from school to work 8. System is self correcting because it is based on needs of employers
John Deere 3,500 Employees produce 40,000 tractors/year 200 apprentices or 3% of the workforce matched to turnover 95% are offered permanent employment Apprentice shop cost $5 million in equipment alone Plant is larger than 100 US football fields We do not show them how to put the toppings on the pizza, we teach them how to cook John Deere Philosophy of Vocational training
BMW 6,000 Employees produce 740 units a day (5 model of cars) 55 apprentices a year at Leipzig plan chosen from 650 700 applicants;hire 100% ; 80% are Realschule, 20% gymnasium (have abitur diploma) Cost per apprentice 20,000 Euros including equipment and salary Worldwide 4,000 apprentices (Spartenburg, China, GB, etc) 50% of the apprentices are mechatronics technicians
Volkswagen 65 apprentices throughout Germany This dealership in Leipzig has 9 apprentices of which 5 are technical and 2 Meisters on Staff
SMSCP Certification Program
Career Awareness and Guidance Career Services at schools from 9 th grade Students tour vocational schools, job centers, get occupational talks 3 weeks of internships mandatory At age 15 can work in the summertime 80% of future jobs in Germany will be in the dual vocational system There are over 300 recognized occupations in Germany including service, commerce, business, hotel, restaurant, manufacturing, baking, electronics, retail, stock exchange, insurance, tourism, construction, media Businesses define skills and knowledge Government regulates these Students are trained to have careers
Career Awareness
State Vocational Schools
Key Differences between our cultures Education is valued Vocational Education is valued All tuition is free Learning is life long
Defined Set of Occupations Training occupations for every sector approx. 344 training occupations Industry Agriculture Commerce Health Skilled trades 12.09.2013 Office/administration
Key Differences between our Cultures
Businesses experiencing a shortage of skilled workers, yet unemployment is high Youth Unemployment high Piecemeal approach to workforce development Few strong connections between schools and careers College valued over vocational training College graduation rates low Businesses experiencing a shortage of skilled workers due to demographics Youth Unemployment exceptionally low Federal Standards for occupations Work happens early and integrated into the school process Both college and vocational paths are valued
Entrepreneurship spirit strong Entrepreneurship based on Meister system Career changes are accepted throughout life Career changes are the exception Employers have flexibility to create jobs, job titles All work is categorized in a defined occupation with standard requirements and certifications Easy for immigrants to get work Difficult for immigrants to get work
Examples in the US
Key Take Aways Critical Success Factors Employers drive the curriculum which is tied to abilities and jobs Training combines on the job with learning aligned to job expectations Standards for examinations, trainers are set to verify competencies learned
New Jersey s Talent Connection Key Sectors Talent Advisory Councils Talent Networks Core Value 1: Driving Investments Based on Industry Needs Metrics Balanced Scorecard, Dashboards And Evaluations Core Value 4: Increasing System Accountability Jobseeker Services Jobs4Jersey.com/OnRamp Jersey Job Clubs Jobs4Jersey University Effective Job Search Techniques Core Value 2: Meeting Jobseekers Where They Are Training and Placement On The Job Training Work Experience Programs Registered Apprenticeships Vocational Training Foundational Skills Core Value 3: Equipping the Workforce for Employment
Key Take Aways New Jersey is well positioned take the next steps Core Value 1: Driving Investments Based on Industry Needs Established Talent Networks in Key Industries Aligned LWD funding to employer needs Opportunity4Jersey Advanced Manufacturing pilot programs $2.5 million NEG and mobile labs Key German/Austrian and Swiss Companies in NJ understand both cultures/systems and the need and ready to partner 12.09.2013
Key Take Aways Continue what we ve started Core Value 3: Equipping the Workforce for Employment Developing and Distributing Career Awareness materials and on jobs4jersey. Com for middle/high school students, parents and guidance counsellors Convening employers and education to ensure a skilled pipeline through feedback from SETC, Talent Advisory Councils, Talent Networks, Business Representatives team Continuing to revise programs and services to align with employer needs 12.09.2013
Quotes There is only one thing in the long run more expensive than education: no education. John F. Kennedy If you are planning for a year, sow rice; if you are planning for a decade, plant trees; if you are planning for a lifetime, educate people. Kwan Tzu