Madrid, March 2014 Andreas Henkes, BMAS, Berlin,

1. Promotion of continuing vocational education and training – core element of labour market policy in Germany Madrid, March 2014 Andreas Henkes, BMAS, Berlin,

2. Agenda • Legal frame and organisation of CVET in Germany • Participating conditions • Education voucher and quality of course providers (Certification) • Subsidies for participants and funding opportunities for employers • Data and Effectiveness of CVET • Current Challenges in CVET

3. Rising demand for qualified personnel

4. Legal frame • Fundamental labour market reforms in 1998, 2003 and 2005 • Social Code Book Three, Employment Promotion (1998); reformed the contribution-financed benefit and labour market promotion system • Sozial Code Book Two, basic income support for job seekers (2005); implementation of a new tax-financed benefit and promotion system for employable people not eligible for unemployment insurance benefit

5. Organisation • Federal Employment Agency in Nuremberg (Bavaria) and its 10 regional and 600 local employment agencies (Social Code Book Three) • 400 regional job centres (Social Code Book Two) • 6,000 certified course providers (private-sector companies or vocational schools) • Information on courses are provided in the KURSNET-Database of the Federal Employment Agency

6. Participating conditions • unemployed people or people at risk of unemployment • employees with no formal vocational qualification • employees (i.e. over the age of 45 years) in companies with fewer than 250 employees; • adivsory discussion in the local employment agency • necessity of CVET for occupational integration (can include assessment and counselling to determine what training is appropriate) • in accordance with labour market needs

7. The education voucher • was introduced in 2003 toimprovecompetitionbetweencourseprovidersandparticipants´ ownresponsibility • guaranteesthepaymentforthecoursebytheFederal Employment Agency/Jobcenters • indicatesthetrainingobjecitive, durationofthecourse, valid uptothreemonths • canberedeemed at anycertifiedcourseprovider • private contractbetweenparticipantandcourseprovider

8. Accreditation and certification system • Accreditation and Licensing ofContinuingTraining Ordinance (BMAS 2004/2012) • Course providers must beauthorisedby an independentcertificationagency; • Certificationagencies must beaccreditedbytheDAkks (Germany`s National Accreditation Body) • Course providers must apply a recognisedqualityassurancesystemeandsecure a high qualityoftheirmeasures (annualre-testingprocedure)

9. benefits for participants • unemployment benefit will (continue to ) be paid • training course costs • travel costs • child care • board and lodging away from home

10. Funding opportunities for employers • Qualification advice, i.e. for small and medium-sized enterprises • Subsidies for employers who continue to pay their low-skilled workers during periods of CVET • Training course costs for CVET (in small and medium-sized enterprises); to workers under 45 years of age under the condition that the employer contributes at least 50% of course costs

11. Data and effectiveness • Budget: 2.4 Billion € (2013) labourmarketoriented CVET • 320,000 newparticipants/year • 85% short time qualificationcourses (professional andpracticalskills) • 15% longretrainingprogrammeswithvocationaleducationandtrainingdegree • Research resultsshow a beneficialimpact on participants • Integration rates 50-70% (sixmonths after course)

12. Current challenges • Initial Training Initiative foryoungadults: Enhancejobprospectsforunskilledyoungworkers(„2. Chance-program“) – 100,000 programmestarters in 3 years (2013-2015) • New incentivestostartandcompletelong time coursesforvocationaltrainingdegree. • Conclusionsfromthe PIAAC Survey of Adult Skills • Reducinglong-term unemploymend • Integration of CVET-aspects in the National Training Pact