Sevilla, June 28, 2010 Marketing – Chancen und Herausforderungen für die BA The German Policies of Employment

Manfred Schnitzler, Sevilla, June Outline 1. Organization (Bundesagentur für Arbeit) 2. Anti-crisis measures (esp. reduced working hours) 3. Orientating the Unemployed 4. Modes of Employment (social security coverage) 5. Dual Learning in Vocational Training

Manfred Schnitzler, Sevilla, June Modes of Employment (social security coverage) Civil servants are exempt from pension and unemployment contributions (they cannot be dismissed); health care is partly provide by state, the difference can be privately insured Members of certain trades (e.g. doctors, lawyers, pharmacists) have their on insurance system All other are – in different degrees - liable to social security contribution and coverage: Pension (P), Health Care (H) and Unemployment (U)

Manfred Schnitzler, Sevilla, June Social security contributions (1) Social security contributions have to be paid according to the amount of salary independent of the type of work (full-time or part-time) Mini-Jobs: no more than 400€ per month or no more than 2 month per year: reduced H but full coverage, reduced P but full coverage, no U no coverage. Total contributions to be paid only by employer

Manfred Schnitzler, Sevilla, June Social security contributions (2) Midi-Jobs: between 400€ and 800€ per month: contributions paid 50/50 by employers and employees, but for employees on a reduced basis increasing with salary (“sliding zone”), i.e. reduced H but full coverage, reduced P and reduced coverage, reduced U but full coverage Normal Jobs: over 800€ per month: contributions paid 50/50 by employers and employees, full social security contributions and full coverage according to the rules of the respective branches

Manfred Schnitzler, Sevilla, June Some recent trends in modes of employment Young people who have finished an approved vocational training (within the “dual learning” system) in the handcraft industries still succeed in getting permanent full-time employment Young academics have – increasingly - to start on a limited time-contract, BUT: by law the duration is limited to 2 years and must not be renewed Number of temporary staff workers (hired by a temporary staff agency and sub-leased to another) has increased over the years Of all vacancies in this spring, predominantly most of them were with temporary staff agencies

Manfred Schnitzler, Sevilla, June Dual Learning in Vocational Training Dual learning means that a young person has a training contract with a company. His/her practical part of the education is done by the company (by approved personnel) – the theoretical part is done by specialized (state run) vocational training schools Young persons under 18 are only allowed to be trained for state-approved professions. For these exist explicit vocational training routines. There are roughly 350 of them. Vocational training for approved professions takes 3 to 3½ years. During these years the youngsters get a small salary increasing over the years of training. This salary is negotiated per industry between employers’ organizations and unions

Manfred Schnitzler, Sevilla, June Services of “Bundesagentur für Arbeit” In each of our agencies there is special staff for guiding young people in search of their dream education and helping them to get an educating company We actively visit near-finish classes of schools to describe our services We offer lots of information about the approved professions profiles We invite young people to make personal dates with our staff to get individual guidance; we offer psychological tests for people not sure about their preferences We provide addresses of companies with vocational training vacancies