Dr. Robin Mishra Bridging the U.S. Skills Gap – A Transatlantic DiscussionApril 28, 2016Dr. Robin Mishra 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 Bridging the U.S. Skills Gap – A Transatlantic DiscussionApril 28, 2016Dr. Robin Mishra “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 Bridging the U.S. Skills Gap – A Transatlantic DiscussionApril 28, 2016Dr. Robin Mishra “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 Bridging the U.S. Skills Gap – A Transatlantic DiscussionApril 28, 2016Dr. Robin Mishra % of youth labor force Youth unemployment rate Source: OECD Labour Market Statistics, October 2015

Dr. Robin Mishra Bridging the U.S. Skills Gap – A Transatlantic DiscussionApril 28, 2016Dr. Robin Mishra 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 Key factors for success

Dr. Robin Mishra Bridging the U.S. Skills Gap – A Transatlantic DiscussionApril 28, 2016Dr. Robin Mishra 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 Bridging the U.S. Skills Gap – A Transatlantic DiscussionApril 28, 2016Dr. Robin Mishra 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 Bridging the U.S. Skills Gap – A Transatlantic DiscussionApril 28, 2016Dr. Robin Mishra 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 Bridging the U.S. Skills Gap – A Transatlantic DiscussionApril 28, 2016Dr. Robin Mishra 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 Bridging the U.S. Skills Gap – A Transatlantic DiscussionApril 28, 2016Dr. Robin Mishra 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 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 Bridging the U.S. Skills Gap – A Transatlantic DiscussionApril 28, 2016Dr. Robin Mishra Lessons learned

Dr. Robin Mishra Bridging the U.S. Skills Gap – A Transatlantic DiscussionApril 28, 2016Dr. Robin Mishra Thank you for your attention! For further information: on Twitter

Dr. Robin Mishra Bridging the U.S. Skills Gap – A Transatlantic DiscussionApril 28, 2016Dr. Robin Mishra History

Dr. Robin Mishra Bridging the U.S. Skills Gap – A Transatlantic DiscussionApril 28, 2016Dr. Robin Mishra The German Educational System - Overview Higher Education Labor market Qualified professional work General Education VET Schools 10 / 13 years 3,5 / 6 years Dual VET years

Dr. Robin Mishra Bridging the U.S. Skills Gap – A Transatlantic DiscussionApril 28, 2016Dr. Robin Mishra The German Vocational and Educational Training System (VET) 70% of VET in company 30% of VET in VET school In-company VET Legal basis: training contract Company, which trains, pays trainee a „training allowance“ Company provides training VET school education Provided free of charge Local government finance s public VET schools (facilities, teachers, etc.) Two coordinated learning venues („Dual“)

Dr. Robin Mishra Bridging the U.S. Skills Gap – A Transatlantic DiscussionApril 28, 2016Dr. Robin Mishra Combining the Worlds of Work and Education Public VET school „Dual“ = 2 learning venues Define, supervise and monitor the what and how of in-company VET based on consensus Provides legal framework, VET research and resources for school-based VET, delegates authority to social partners and chambers Chambers and social partners Government (federal and local) Employer Trainee Company Occupation („Beruf“) World of Work World of Education

Dr. Robin Mishra Bridging the U.S. Skills Gap – A Transatlantic DiscussionApril 28, 2016Dr. Robin Mishra 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 Bridging the U.S. Skills Gap – A Transatlantic DiscussionApril 28, 2016Dr. Robin Mishra Dual System (I): Facts and Figures 21,3% of German companies train More than new trainees every year Hire 66% of Dual VET trainees after training as employees Public expenditure for Dual VET: 5.9 bn EUR Overall net cost of Dual VET for companies: 5.6 bn EUR (gross cost bn EUR) Finances 1600 public VET schools for Dual VET Trainees Employers Government 1.4 mio. trainees in 330 recognized training occupations High employment security Average training allowance of about 650 EUR per month Data from BIBB National VET Report (2013/2014) and Statistisches Bundesamt

Dr. Robin Mishra Bridging the U.S. Skills Gap – A Transatlantic DiscussionApril 28, 2016Dr. Robin Mishra Dual System (II): Benefits Occupational proficiency Earn income Learning by doing Identification 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 Positive impact on economy and society Saves expenses, e.g. on labor market matching Ability to efficiently monitor, steer and regulate Trainees Employers Government

Dr. Robin Mishra Bridging the U.S. Skills Gap – A Transatlantic DiscussionApril 28, 2016Dr. Robin Mishra Dual System III: Challenges Finding a training place Increasing demands at the workplace Improving life-long learning opportunities Finding young people Finding competent trainees Including disabled people, minorities, refugees etc. 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 Trainees Employers Government

Dr. Robin Mishra Bridging the U.S. Skills Gap – A Transatlantic DiscussionApril 28, 2016Dr. Robin Mishra Labor unions and employer assocations negotiate training allowance of trainees Labor unions offer trainees advice on in- company VET Labor unions monitor in- company VET The role of the stakeholders 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 Advise company on VET Train in-company trainers Assess and certify company and trainers for in-company VET provision Monitor and control in- company 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 Chambers Social Partners Government