Labour Market Qualifications

Germany: Labour Market Qualifications
Traditionally the relationship between education and occupation has been quite narrowly defined in Germany. The field of study is the most important criterion for employers to recruit graduates in combination with aspects that can be subsumed as generic and personal skills’. The relationship is not always direct as in many cases phases of additional professional training are needed to prepare graduates especially in the higher ranks of a professional hierarchy.

Dual education (or cooperative education) has a long tradition and is generally considered as a successful model to close the gap between education and work. It operates mainly in the VET sector and the Berufsfachschulen, but finds its place increasingly in higher education. Due to changes in the economic structure with a growing emphasis on the service sector, demand for a higher qualified workforce is expected to increase considerably. Various sources point to shortages in different areas and additional investments are seen as necessary. Following the advice for example by the Wissenschaftsrat, the federal and state governments agreed in the Hochschulpakt 2020 to enlarge the capacity of HE institutions to accommodate a larger number of students.

This Hochschulpakt includes agreements about large financial investments, to be covered jointly by the federal and state governments on an equal basis. The tuning of supply and demand takes place in the context of the contracts between the government and individual institutions (‘Zielvereinbarungen’). The contract determines the capacity of the number of first entrants per study field of each institution. Monitoring of graduates on the labour market in the respective fields is part of the assessment. In order to admit more students in the system, the Wissenschaftsrat advocates a more differentiated system than the basic distinction between universities and Fachhochschulen (Universities of Applied Sciences – UAS). Universities should have more autonomy to stress their distinctive features and to develop their own individual profiles. According to the Wissenschaftsrat, universities should offer more practice-oriented programmes. In his view a majority of the students is interested in more professional education and consequently universities should reinforce the connection with the labour market, convey employable competencies and integrate these in the study programmes. Universities should find adequate, differentiated ways to connect research, education and practice7 .

Labour market shortages are particularly prospected in the technical fields and a larger number of technically well prepared and informed workforce is needed. Policy measures are focusing on:
  1. Interesting young people in nature and technology,
  2. Increasing the attractiveness of technical occupations, 
  3. Improving the study results of students in technical fields and counter drop out rates, 
  4. Improving the quality of programmes and introduce curricular innovations. 
The latter includes proposals for an extension of project-based learning and practice-oriented learning which tunes to the experiences and life situations of the students and can include competences acquired outside HE.

Another policy is to introduce programmes with various study duration, including professionally-competent Bachelor programmes. Bachelor degree as a labour market qualification Although in Germany the Bologna-Process occurred relatively late, it has been used as an opportunity for a modernisation of study programmes in cooperation with the ‘societal stakeholders’, such as the participating institutions, students, employers, and employee representatives. A consistent orientation toward key competences, skills acquisition (including soft skills) and learning results c.q outcomes enhances the awareness for labour market needs and working demands. Also work-relevant components such as internships and thesis papers on issues with practical relevance would increase the employability of graduates.

The situation of Bachelor programmes is of particular interest. In correspondence with the Bologna intentions a Bachelor degree should have a labour market relevant qualification. Empirical evidence shows a growing acceptance of the Bachelor degree on the labour market. In its graduate survey INCHER assessed that about 22 per cent of the Bachelor graduates from universities and 59 per cent from Fachhochschulen choose to enter the labour market directly. Moreover, these graduates indicate similar periods of seeking employment and equally high job satisfaction rates and utilisation of acquired competences compared to those graduates with the traditional degrees. Furthermore, the differences in professional success among graduates from different disciplines do not differ that much anymore than previously assumed.8 Other statistics point in the same direction.

Particularly in SME’s there is a growing experience with graduates and Bachelors fulfil the requirements at their workplace successfully. The majority of companies surveyed integrated the Bologna Process into their personnel policies. Even in fields like engineering Bachelor graduates are increasingly being recruited and depending on the size of the company this trend is continuing. In 88 percent of the companies the career development of young engineers depends on how they have proven themselves in corporate practice9 . These outcomes contradict the general notion that Bachelor graduates would have no chances on the labour market. On the contrary there is an evolving normal situation for them in the transition to work and to start a career.

These labour market findings in combination with the general demand - supply factor and the growing need for more continuing (professional) education are utilised in higher education policy. In a joint declaration, employers, unions, HE institutions and student organisations strongly support the further development of the Bologna-Process and to anchor the goals of mobility, employability (‘Beschȁftigungsfȁhigkeit’) and lifelong learning. Several key themes to achieve these such as creating more diversity of degree programmes, more flexible and modular structured pathways allowing for adequate consideration of a variety of desired qualifications have been materialised in the project nexus led by the HRK