Issue
Youth Unemployment

Youth unemployment in Germany is much lower than in Canada. How do they do it and what can we learn?

Burgess COMMENTARY

Peter Burgess

Youth unemployment in Germany is much lower than in Canada. How do they do it and what can we learn?

Canada’s youth unemployment rate is 13.4%. Ontario’s is 15.8%. Germany’s is 7.8%. Why?

Working alongside government and employers, labour unions in Germany also play a more active and engaged role in apprenticeship and trades than in Canada.

Germany has a unique approach to education, apprenticeships and job training. Many Canadians are increasingly interested in seeing what we can learn from Germany. In fact, Federal Minister of Employment and Social Development Jason Kenney traveled to Germany in the spring to study the country’s vocational training model. But adopting the German system in Canada would require radical changes to our education and labour market systems. These are unlikely to materialize. But we can learn from Germany, and apply some of their lessons within the context of the Canadian system.

What’s going on in Germany?

Germany uses a dual system of vocational education and training. The system is referred to as “dual” because the knowledge and skills required for each specific profession are conveyed in two different learning-locations: a classroom and a work place.

The dual system enables students to learn both in and outside of the classroom. Students as young as 10 years old are steered into either vocational or academic streams. About 60% of youth age 16 to 18 opt to continue their technical training in high school and pursue vocational training. These students attend school one or two days per week, studying the theory and practice of their occupation as well as general subjects, and perform on-the-job training three or four days per week—a hands-on experience that allows them to gain real skills and pocket real money. Financing is shared by government and the private sector, keeping public spending relatively low.

image-quote Vocational training in Germany covers a much wider range of professions than in Canada. While Canadian apprenticeships are concentrated in skilled trades, not everybody wants to be a mechanic—German students can choose from some 350 certified occupations, ranging from technical, commercial and industrial sectors to public sector administration and health and social services. Popular apprenticeships include medical assistant, hairstylist, and bank teller.

Studies have shown that the dual system contributes to Germany’s impressively low youth unemployment rate. Not only are the majority of youth employed, but a significant number gain authentic career experience—as opposed to the minimum wage, service sector employment more commonly employing youth in Canada. This system has the potential to improve our youth employment picture, but it would require fundamental changes to the education system at the provincial level—not just tinkering. Applying bits of the German apprenticeship system to Canada are unlikely to be successful. Only through elaborate reform to our education system—including early streaming of children into very specific occupations—will we be able to achieve Germany’s results.

Why is the German system of apprenticeships and job training so much more effective at curbing youth unemployment than Canada’s?

Three key elements of the German system have contributed to its success. None are enjoyed in Canada.

Collaborative labour markets

Germany’s education policies are rooted in a collaborative approach to labour markets, a key feature of which is a high level of employer involvement. German companies are required to train employees based on a system of nationally-established and portable certifications, defined by government in collaboration with employers—elements that do not exist in Canada, where responsibility for both education and the regulation of professions falls to the provinces.

Working alongside government and employers, labour unions in Germany also play a more active and engaged role in apprenticeship and trades than in Canada. This close cooperation between stakeholders, for example in the development of job descriptions and execution of tests and exams, contributes to the broad social acceptance of vocational training in Germany. It also helps to balance competing interests, ensuring quality outcomes for students, workers, and employers.

Standardized training quality

In Germany, federal and state governments regulate minimum standards to ensure the quality of vocational training, including professional standards and experience for training personnel. This has helped to improve the quality of on-the-job training, which in turn has helped reduce dropout rates and improve employment outcomes. Given the range of professions involved, these minimum standards are adapted to take into account the role, sector, and company size.

Vocational education and training enjoys widespread support

Vocational education and training has been a feature of the German economy for decades, and has strong historic and cultural roots. Germany’s education system steers youth from a very young age with aptitude tests and parental guidance, helping to sort students into vocational or academic streams.

Vocational education is taken seriously as a system that blends classroom and academic education with on-the-job training, equipping youth with practical labour market skills for a broad range of occupations.

Things are very different in Canada. Because vocational or technical college training are viewed as less desirable than a university degree by many, Canadians are more focused on the idea of sending most youth to university.

Could the German system be adopted to improve the labour market system in Canada?

The short answer is no. The factors that make this system work successfully in Germany simply don’t exist in Canada, and would require transforming our labour markets, education systems, and industrial relations altogether.

However, we can take some lessons from the model to address our own made-in-Canada challenges.