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Mutual Learning Programme Mutual Learning Programme 2012 Autumn Peer Reviews MUTUAL LEARNING PROGRAMME: PEER COUNTRY COMMENTS PAPER – AUSTRIA FACILITATING ACCESS TO APPRENTICESHIP AND INTEGRATION INTO LABOUR MARKET: TRAINING GUARANTEE AND YOUTH COACHING Peer Review on ‘The dual training system – Integration of young people into the labour market’ Germany, 24 – 25 September 2012 A paper submitted by Sigrid Nindl in consortium with GHK Consulting Ltd and CERGE-EI Date: 10/09/2012 Mutual Learning Programme 2012 Autumn Peer Reviews This publication is supported for under the European Community Programme for Employment and Social Solidarity (2007-2013). This programme is managed by the Directorate-General for Employment, Social Affairs and Inclusion of the European Commission. It was established to financially support the implementation of the objectives of the European Union in the employment and social affairs area, as set out in the Social Agenda, and thereby contribute to the achievement of the Lisbon Strategy goals in these fields. The seven-year Programme targets all stakeholders who can help shape the development of appropriate and effective employment and social legislation and policies, across the EU-27, EFTA- EEA and EU candidate and pre-candidate countries. PROGRESS mission is to strengthen the EU contribution in support of Member States' commitments and efforts to create more and better jobs and to build a more cohesive society. To that effect, PROGRESS will be instrumental in: providing analysis and policy advice on PROGRESS policy areas; monitoring and reporting on the implementation of EU legislation and policies in PROGRESS policy areas; promoting policy transfer, learning and support among Member States on EU objectives and priorities; and relaying the views of the stakeholders and society at large For more information see: http://ec.europa.eu/social/main.jsp?langId=en&catId=987 The information contained in this publication does not necessarily reflect the position or opinion of the European Commission. Mutual Learning Programme 2012 Autumn Peer Reviews CONTENTS 1 LABOUR MARKET SITUATION IN THE PEER COUNTRY ......................................... 4 2 ASSESSMENT OF THE POLICY MEASURE ............................................................... 5 3 ASSESSMENT OF THE SUCCESS FACTORS AND TRANSFERABILITY ..................... 8 4 QUESTIONS ............................................................................................................... 9 ANNEX 1: SUMMARY TABLE ........................................................................................ 10 ANNEX 2: FIGURES AND TABLES ................................................................................. 11 ANNEX 3: REFERENCES ............................................................................................... 13 Mutual Learning Programme 2012 Autumn Peer Reviews 1 LABOUR MARKET SITUATION IN THE PEER COUNTRY This paper has been prepared for a Peer Review within the framework of the Mutual Learning Programme. It provides information on Austria’s comments on the policy example of the Host Country for the Peer Review.1 For information on the policy example, please refer to the Host Country Discussion Paper. Economic and labour market situation and the impact of the crisis Austria, as a highly developed industrialised country, has an important and still growing service sector, whose significant elements include tourism and the public service. The overriding characteristic of the Austrian economy is the predominance of small and medium-sized enterprises (SMEs), while large multinationals headquartered in Austria are rare.2 Austria’s economy has been marked by a structural move towards the tertiary sector since the late 1990s. From 2006 to 2011, the number of persons in gainful employment within the tertiary sector increased by 2.3 %3. The percentage of the working-age population (20-64 years) that has successfully completed upper stage of secondary education (ISCED 3-4) is very high in Austria (77 %).4 The reason for this lies in the structure of the education system with its numerous options for vocational education and training (VET). This can take the form of participation in full- time VET in schools and colleges or within the dual system (apprenticeship). The banking, financial and economic crisis has had severe global impacts on the economy and labour market. Young people have been particularly affected by rising levels of unemployment associated with the recession in 2009. In Austria, the youth unemployment rate (see Annex, Figure A1) peaked in 2009 at 10 % and receded to 8.3 % in 2011 (8.5 % in Germany). After the economic downturn in 2009 and a recovery in 2010, economic experts are projecting economic growth of 0.9 % for 2012 in Austria. Also growth in employment of about 56 700 persons is expected for 2012 and will continue in 2013 and 2014. The unemployment rate decreased in 2011 to 4.2 % and was the lowest in the Eurozone5. In the group of the 15-to-24-year-olds, Austria has a lower unemployment rate than the EU- 27 average in this category. Also, the general unemployment rate in Austria in 2011 was 5.5% lower than the EU-27 average. The reasons for the relatively low youth unemployment can be found in the wide range of programs provided by the Austrian (vocational) education and training system, and primarily in apprenticeship training.6 Although the unemployment rates declined in 2010 and 2011, recent statistics show a slight increase within the last year. In addition, the medium- and long-term consequences of the crisis for individual economic sectors, training systems and the various groups represented on the labour market cannot yet be properly appraised. The field of dual training (apprenticeship) has had a slight drop in apprenticeship entrants’ figures from 2008 to 2009 but a minor increase from 2009 to 20107. 1 Thanks to Eva Proinger for her assistance with this report. 2 Cedefop, Country Report Austria, Vienna, 2012. 3 Statistik Austria, Labour market statistics, Vienna, 2011. 4 Eurostat, EU Labour Force Survey. Internet: http://epp.eurostat.ec.europa.eu (8.8.2012). 5 Central Bank of Austria (OeNB). Internet: http://www.oenb.at (8.8.2012). 6 ReferNet Austria, VET in Europe, Country Report Austria, 2011, p. 6. 7 ReferNet Austria, 2011, p. 20 (2008: 40 265; 2009: 39 605; 2010: 39 761). 4 Mutual Learning Programme 2012 Autumn Peer Reviews Labour market situation and general policy framework for young people In Austria, around 40 % of young people at the age of 15 years begin apprenticeship training (dual training at a company and part-time vocational school) in one of about 240 legally recognised apprenticeship trades. Company closures due to the economic crisis have led to a slight decline in the number of training companies (by 5.1 %)8. However, the number of those that started apprenticeship training dropped less in the same period (by 1.3 %). Public authorities in cooperation with the social partners introduced measures within the formal and the non-formal VET segments to cushion the effects caused by the crisis. One measure for the formal education system is the so-called ‘training guarantee’ until the age of 18 years. The 'training guarantee' states that all compulsory education graduates who do not have a place at an upper secondary school or cannot find a company-based apprenticeship place are given the opportunity to learn an apprenticeship trade at a supra- company training institution financed by the Public Employment Service9. In 2011, 12.9 % of the population aged 15 to 24 years in the EU-27 were neither in employment, education or training (the so-called NEET group), which corresponds approximately to 7.5 million young people. In Austria, the rate of NEET is significantly lower than the EU-27 average (2011: 6.9 %) and has been declining since 2009 (see Annex, Figure A2). 2 ASSESSMENT OF THE POLICY MEASURE In Austria around 80 % of each cohort10 enter a VET pathway after finishing compulsory education, about 40 % take up an apprenticeship. The number of apprenticeship seekers (recorded at the PES) exceeded the number of apprenticeship places in 2011 by 896 training places and during the crisis in 2009 by 1,485 places (see Annex, Table A1).11 To further enhance the attractiveness of VET in Austria, a high importance is placed on different possible pathways of vocational training. Therefore, policy measures are more goal-oriented than global;12 for example, reducing the gender-specific segregation in VET (share of female apprentices of 34%, focusing on three occupations) or recognizing informally acquired competencies. The policy measures of Germany, such as EinstiegsQualifizierung Jugendlicher (EQJ- Programm) and Berufseinstiegsbegleitung, are reflected in similar policy measures in Austria. On the one hand, there is the so-called ‘Training guarantee for young people up to the age of 18’, which has been introduced in June 2008. On the other hand, the Jugendcoaching (Youth Coaching) program offers a range of consultancy and support services for pupils within the ninth grade.13 Training guarantee The Jugendausbildungs-Sicherungsgesetz (JASG, Youth Training Guarantee Act), also called ‘safety net’, was enacted in 1998 and provided course places and foundation places for youths who could not find a training place (partially due to a higher number of apprenticeship seekers than number of available apprenticeships; see Table A1). The objectives of the JASG measures were to obtain partial qualifications in the area of VET, to 8
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