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Jonathan Barr - How to expand apprenticeships to new players?
1. HOW TO EXPAND APPRENTICESHIPS TO
NEW PLAYERS?
OECD-LEED 12TH ANNUAL MEETING –
VENICE
Presentation by Jonathan Barr, Policy Analyst, OECD
2. Source : OECD estimates based on national labour force surveys.
*data for 2015 not available (replaced by 2014 data)
Youth unemployment remains high
Youth unemployment rate, 2007, 2011 and 2015
As a percent of all youth aged 15/16-24 in the labour force
2
0
10
20
30
40
50
60
2007 2011 2015
4. Participation in apprenticeship programmesa,b
As a proportion of total youth aged 16-29 years, 2012
a) The estimates are shown in a lighter colour where based on less than 30 observations for the total and less than 15 observations by gender.
b) The results refer to England and Northern Ireland for the United Kingdom and exclude the population of the Moscow municipal area for the Russian Federation.
Source: OECD Survey of Adult Skills (PIAAC), 2012.
Apprenticeships are a useful VET pathway
to work but need to be expanded
0
2
4
6
8
10
12
14
16
Total Men Women
5. OECD/G20 outcomes on quality
apprenticeships
Ensuring access to high-
quality programmes
Making
apprenticeships
more valuable to
youth
Making
apprenticeships
more attractive to
employers
6. • Large variations across the OECD in terms
of:
1. duration of programmes
2. percentage of time spent on the job training
3. completion rates
No one size fits all model/framework
7. • At the local level, effective apprenticeships programmes
can help to achieve key economic development
objectives.
• Apprenticeship programmes can stimulate quality
employment opportunities in service-based occupations
by providing skills development opportunities that are
tied to the workplace.
• The potential role for local public agencies and
governments to enhance apprenticeships can often be
overlooked at the national level
The importance of the local level
8. The role of the national and local level in
promoting apprenticeship programmes
National level Local level
Scope of
policy
influence
Set legislative and regulatory
quality framework through
curriculum and
qualifications standards
Provides incentives for
participation through tax
credits, grants, and subsidies
Coordination role by
bringing together national
social partners
Collects and disseminates
data and labour market
information on trends and
future occupations
Forges partnerships with local
employers to promote benefits of
participation and link them to services
Ensures public actors are speaking with
“one voice” by building strong
partnerships with between
employment, training, and economic
development actors
Leverages public procurement policies
Provides information, advice and
guidance to youth and employers based
on local job information
Builds capacity among training
providers to deliver programmes in an
innovative manner
9. • High levels of employer
involvement = critical success factor
for effective apprenticeship systems
• Employers can take “ownership” of
the system
• Promoting the benefits of
apprenticeship to employers while
also exerting moral pressure on
employers not participating to
rethink their approach.
Encouraging employer leadership
10. • City governments can also act as a
central coordinating body, to
coordinate outreach to avoid
duplication and “engagement
fatigue” among local employers.
• Importance of local leadership
from elected officials, mayors and
local employment services and
economic development
organisations
• Local leaders can engage business
include breakfast meetings, media
and marketing campaigns, as well
as letters to individual employers.
Public sector leadership can stimulate
engagement with apprenticeships
11. • Public policy can be used to shape the demand for skills and
the number of apprenticeship places offered by employers.
• Local government can use their spending power and funding
policies to ensure that employers provide apprenticeships.
• Recent research has found that these types of arrangements
can positively impact the probability of employers offering
apprenticeships by 10-35% (Leiser and Wolter, 2015).
• Furthermore, this impact is primarily concentrated on SMEs
who are less likely to participate in apprenticeship
programmes through traditional training arrangements.
Steering the outlook of firms through public
procurement
12. Percentage of employees participating
in work-based training
0
10
20
30
40
50
60
70
80
From 10 to 49 employees From 50 to 249 employees 250 employees or more
13. • Networks are critical – both place-based and by sector
• Using intermediary bodies to increase participation (e.g.
Australia and Norway)
• Beyond networking, specific public policy support and
outreach measures are needed to actively engage and
encourage SMEs to participate in apprenticeship frameworks.
• In many cases, public policy actors need to convince SMEs of
the “business case” for changing prevailing practices, which
may encourage low-quality working conditions.
How to best target SMEs?
14. • Need for flexibility for local training institutions to
adjust programmes to local labour market
considerations and employers.
• Training institutions can take a lead role as an anchor
institution at the local level by reaching out to
employers to align their programmes and curriculum
to demand.
• It is important to balance the development of flexible
training delivery arrangements within a national
system that emphasises quality apprenticeships.
Flexibility within VET is critical
15. Service delivery innovation in Canada
at Mohawk College
Employing back-to-back education modules
blended and online learning to reduce the time
apprentices are away from the workplace and
accommodate employer workload priorities
enabling apprentices to complete portions of their
workplace hours by expanding the in-school component
to include real world, living lab work experiences and co-
op placements
Sharp increases in youth unemployment and underemployment have built upon long-standing structural obstacles that are preventing many youth in both OECD countries and emerging economies from making a successful transition from school to work.
The number of young people out of work in the OECD area is nearly a third higher than in 2007 and set to rise still further in most of the countries with already very high unemployment in the months ahead. Youth unemployment rates exceeded 25% in nine OECD countries at the end of the first quarter of 2013, including Ireland, Italy, Portgual, Spain and Greece.
Long-term unemployment among youth has increased dramatically since 2007, with more than one in five young people aged 15-24 out of work for more than 12 months. Even countries that have escaped the worst of the crisis, such as Australia, New Zealand and Sweden, have seen a significant rise in long-term joblessness.
In Australia, we see that overall unemployment has gone from 5.5% to 5.9% from 2013-2014. Youth unemployment has jumped from 12.0% to 12.6%. In Tasmania, we see that the youth unemployment rate stands at about 17.4%. The other major issue is that youth are leaving for other states in Australia with 15-34 year olds accounting almost 85% of the total net interstate migration outflows.
In many OECD countries, there has been increasing interest in apprenticeships both as a route into employment and also in raising the skill levels of the workforce. Apprenticeship systems provide a number of career pathways for youth to develop skills and attachment to the labour market.
Give the success that countries with robust apprenticeship systems have had in reducing youth unemployment, raising the status of middle wage jobs and limiting skills shortages, the OECD has called for a major expansion of these programmes as a way of stimulating quality employment.
Here we see Germany with a very high number of apprenticeship participation and many experts point to this situation as contributing to Germany’s low youth unemployment rate. Interestingly, Australia has a relatively high participation rate when looking at other G20 and OECD countries. One of the things that really sticks out though is the large difference between men and women’s participation in apprenticeship opportunities. Here it is 8% vs. 4% so it’s almost double. Clearly, there is a need to increase the attractiveness of apprenticeship opportunities for women.
As part of the G20 process, Minister’s agreed in 2012 that a comprehensive strategy was needed to boost youth unemployment and that quality apprenticeships have an important role to play in promoting a smooth transition from school to work.
This slide show the three pillars of success for increasing the availability of high quality apprenticeship programmes.
Ensuring access to high quality programmes: Some work done by the G20 outlines how quality apprenticeships share several attributes, such as not being limited to specific age groups; facilitate participation by disadvantaged youth; include a strong training component; provide training that is not too narrowly focused; cover multiple sectors and occupations; involve an equitable sharing of costs; operate according to competence-based rather than time-based; and are certified and well managed within the formal education system
Making apprenticeships attractive to youth: There is a bias in favour of higher education programmes and in many countries (event with well developed apprenticeship systems), there is a negative stigma associated with apprenticeship opportunities and the job opportunities available. By the end of the apprenticeship, youth need to perceive that they will have a durable and high quality job. This can by done by ensuring that the system is integrated into the formal schooling system and having apprentices receive a formal qualification, as in Australia.
Employers: making apprenticeships attractive and profitable to employers is a key ingredient of success. Showing employers the benefits in terms of productive employees that better contribute to the bottom line is critical. Furthermore, employers want to see an equitable sharing of the costs among themselves, government, and apprentices.
Studies on the net costs to firms during the apprenticeship period indicate wide variations across countries, occupations, and time. Across the OECD, we see large variations in the duration of programmes (that is the number of years – Australia is 1-4 years, the US is 1-6 years; Canada is 2-5), the percentage of time spent on the job (ranging from 80% in Australia to usually over 85% in Canada and the US). Germany is 70%.
Lastly, completions rates is highly variable. Australia is 50% vs. 55% (Canada), 70% (UK), and over 85% in Germany and Switzerland.
Central to firms’ ability to recoup most or all of their training costs is the amount of time apprentices spend directly in productive environments.
For example, research comparing the German and Swiss models of apprenticeship have shown that although Swiss firms spend more than German firms, they derive a substantially higher benefit from the value added by apprentices. Swiss firms gain more than 19,000 EUR a year, more than double the 8,000 EUR in benefits that German firms attribute to the value of production generated by apprentices.
First, apprentices are at work most day in Switzerland than in Germany – 468 days vs. 415 days over an average three year apprenticeship.
Second, when in the workplace, Swiss apprentices devote an average of 83% of their time to productive tasks, compared with only 57% of german apprentices who engage more in practicing tasks and engaging in coursework.
Third, the differences in time spent on tasks with no direct value to the firm are substantial. In Switzerland, apprentices allocate only 13-21% of their time on these tasks whereas in Germany, these tasks take up 31-57% of the time.
Locally, what’s need is strong targeted outreach by the public sector to employer to promote the benefits and how it can ultimately help their company bottom line. This requires successful marketing strategies as well as technical assistance to overcome potential administrative barriers.
Empowering businesses to grow and to hire workers is at the heart of the philosophy underpinning job creation. Ensuring firms can access the skilled workforce and the financing they need is critically important and there is scope to better incorporate the local and regional dimension into these efforts.
An advantage of a bottom-up approach is that institutions can adapt both the mix of provision and curricula to local needs, including local employer demands.
Furthermore, training institutions benefit from networking with economic developers and local businesses to ensure that courses reflect rapidly evolving demands for skills and prepare for forthcoming local investments. Partnerships with employers have a wide range of spinoff benefits, including the development of applied research, as well as enhancing the quality of teaching by ensuring trainers have the experience and knowledge required for modern industry.
At the local level, effective apprenticeships programmes can help to achieve key economic development objectives. They provide a mechanism to boost the competitiveness of strategic local sectors.
Apprenticeship programmes can stimulate quality employment opportunities in service-based occupations by providing skills development opportunities that are tied to the workplace. They can also be targeted beyond the traditional trades to new and emerging sectors which can provide new economic growth opportunities.
The potential role for local public agencies and governments to enhance apprenticeships can often be overlooked at the national level and even by local actors themselves when they do not have the ability to shape local actions.
Effective apprenticeship strategies require active and continued engagement with employers; high quality and transparent educational pathways, strong and flexible VET institutions and robust labour market information and intelligence
For example, the European Alliance for Apprenticeships is working with employers, non-profit organisations, and education and training providers and regional authorities to pledge to work with partners to promote and strengthen collaboration and partnership between business and VET providers. Companies, such as Cisco Systems and Microsoft have pledged to participate more in apprenticeship opportunities. This type of initiative is one way of promoting the benefits of apprenticeship to employers while also exerting moral pressure on employers not participating to rethink their approach.
For example, The City of London launched an apprenticeship campaign in 2012 and made maximum use of the Mayor of London brand to recruit existing and new employers to participate in apprenticeships (Evans and Bosh, 2012). The city also set up a call centre to provide specific and specialised supports to employers who had questions about the administrative process of participation. As part of a broader push towards the decentralisation of skills policies, many cities in the United Kingdom have established local apprenticeship hubs, which act as a central coordinating and marketing organisation to engage with employers and individuals on apprenticeship programmes (see box).
This approach is taken in Switzerland, where cantons (which are similar to a state) have modified legislative and regulatory frameworks to give preferential treatment to employers that agree to offer and train apprentices (Leiser and Wolter, 2016).
Over the last 20 years, most cantons have modified their social public procurement policies to use the government’s market power to increase the number of apprenticeship training places. Some municipalities in the Czech Republic have also moved to introduce social clauses into their public procurement processes with the goal of adding human resource management considerations
In Australia, Group Training Organisations (GTOs) operate across all States and Territories, playing a key role in the business development support to SMEs. The group training network is an established part of the architecture of the VET system in Australia, which includes 150 GTOs, 2,000 field staff and 100,000 host employers. Many GTOs now provide a range of other workforce development related services such as Registered Training Organisations (RTOs) and Australian Apprenticeships Centres (AACs). Many are sources of innovation in new ways to serve employer demands for a skilled workforce, and for government initiatives for meeting skills gaps or engaging marginalised job seekers.
In Norway, The use of Training Offices in Norway has increased a great deal during the last 20 years, and now account for 70-80% of all training companies. The Training Offices have the legal status of a training company, but operate in between the county authorities and the training company. The Training Offices often take responsibility for recruiting new training companies and coach staff involved in the tutoring of apprentices. A recent research report on the role of the Training Offices, conclude that the Training Offices also carry out the county authorities tasks and work actively in assuring the quality of the apprenticeship training (Høst et. al. 2014 ).
The national authorities also offer support to training companies and Training Offices by developing guidelines on the training companies’ obligations according to the law and practical examples on how the training can be done. These guidelines includes topics such as the role of the training company, how to work with the national curricula at a local level, how to document and assess the training continuously and how the trade and journeyman’s test can be carried out.
One aspect of quality would involve developing apprenticeship frameworks within a national system of qualifications and competencies
Role of unions
In Ontario, Canada, locally-based community colleges are active in delivering flexible apprenticeship programmes to meet both the needs of employers and apprentices. Currently, Ontario has about 40,000 active apprentices in over 150 trades. About 50% (20,000) of apprentices follow block release training, whereby the apprenticeship completes the in-school portion of training over 8 weeks at a local college. This type of arrangement is typical of the construction trades, which are delivered during the winter period when business activity is low.
The other 50% of apprentices (e.g. 20,000 individuals) participate in some form of part-time training to complete the theoretical portion of their programme. Part-time options include day release training whereby an apprentice will attend the in-school portion of their training one day/week and spend the other 4 days of the week in the workplace. Another part-time option that is delivered by colleges includes night school whereby the apprentices participate in training that is delivered after work hours.
Colleges also deliver reportable subjects which are part-time and would involve an apprentice participating in a programme like a normal college student (e.g. perhaps one 3 hour class per week that follows that typical college semester). Reportable subjects are most often delivered for early childhood educators and development service workers. Reportable subjects are also a primary delivery method for immigrants participating in apprenticeships or mature workers who are pursuing a second career. They are convenient for apprentices who need to balance family-work responsibilities.
Mohawk turns out about 3,000 apprentices a year in 15 programs. Despite updating its curriculum recently, Mohawk has been suffering from out-of-date equipment. It is using new funding to buy up to date machinery to make sure apprentices are learning on the latest equipment.
By 2018, Mohawk college is committed to transforming the delivery of apprenticeship programmes by: employing back-to-back education modules, blended and online learning to reduce the time apprentices are away from the workplace and accommodating employer workload priorities, resulting in improved apprenticeship completion. The college is also looking at enabling apprentices to complete portions of their workplace hours by expanding the in-school component to include real world, living lab work experiences and co-op placements.
In some cases, programmes can be delivered directly at the location of the employer. For example, Seneca Colleges works with the Community Living Foundation works deliver training programmes on site for Development Service Worker trades. The college instructors makes arrangements with the employer to deliver course to anywhere between 10-15 apprentices. The only cost for the employer is providing the training space, where the province covers the costs related to the delivery of the training.
The province is continuing to explore online delivery of training which can be difficult depending on the trade that is being pursued. Currently, Sir Stanford Fleming College delivers an online course for Early Childhood Educators. This model is being examined to see if it can be applied to other trades.