The Obama administration and governors from
Michigan to South Carolina have a solution for some of the U.S. manufacturing
sector's woes: German-style apprenticeship programs. But their success is
proving to be unusually one-sided, mostly drawing firms based in Germany and
other non-U.S. countries. In South Carolina, "Apprenticeship 2000," a
program combining classroom work and on-the-job training, has drawn numerous
German companies but so far only two U.S. firms, Ameritech Die & Mold Inc.
and Timken Co.
Both the White House and governors are trying to fight a
so-called skills gap among U.S. workers that many businesses blame for the slow
labor-market recovery. Although plenty of Americans are looking for work,
employers often lament a lack of qualified workers—particularly young people.
Germany, in contrast, has a long record of finding a
stronger fit between employees' skills and employers' demands. The success is
reflected in a youth unemployment below 8%, the lowest of any advanced country
and about half of the U.S. level. The apprenticeship system is credited as a leading
driver of what many European economists call the German labor-market
"miracle."
Unlike in the U.S., where workers are largely hired and then
trained for a company's particular needs, German vocational training normally
takes three years and is supposed to give apprentices a broader qualification
beyond a single employer's needs.
The students, paid by the companies, spend three to four
days a week doing on-the-job training within companies and the rest of the time
taking classes at public vocational schools. Curricula are developed by
employers' associations, trade unions and the federal government. Costs vary
but average roughly $20,000 a year, typically for three years.
Most U.S. workers avoid the same path for a number of
reasons, experts say. Parents and educators tend to generally encourage young
Americans to attend college. While businesses have an incentive to hire
qualified workers, many resist investing in people who might leave. And the
community colleges that are often at the center of apprenticeship programs tend
to focus on local interests.
President Barack Obama, who has discussed the German model a
number of times, has taken some action. The administration wants to double the
number of apprentices within the next five years and plans to launch a $100
million program to expand apprenticeships. Its success remains uncertain
because of the U.S. educational system's decentralized structure. While Germany
has national standards for vocational training, it's difficult for federal
officials and state governors to set standards for community colleges.
Some corporate executives fear spending money on training
could be a bad investment. At first glance, the fear of misinvestment seems
justified. Studies show Americans between the ages of 16 and 25 change their
jobs almost eight times, three times as much as Germans in the same age group.
But the figures also could prove why the German model works: If companies
invest in their workforce, the workers are much more loyal.
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