Why the US is Looking to Germany; Vo-Tech Schools...

Edward Luce:

As a package, the answer is no. Germany channels roughly half of all high-school students into the vocational education stream from the age of 16. In the US that would be seen as too divisive, even un-American. More than 40 per cent of Germans become apprentices. Only 0.3 per cent of the US labour force does so. But with the US participation rate continuing to plummet - last month another 496,000 Americans gave up looking for work - many US politicians are scouring Germany for answers.

It is turning into something of a pilgrimage. Rick Snyder, the Republican governor of Michigan, and John Kasich, Republican governor of Ohio, have both recently toured vocational academies in Germany. The German embassy in Washington has even set up a programme called the "skills initiative" to cater to all the questions from the heartlands.

"The US is not a developing country so we don't need to send teams of technical advisers into the field," one German diplomat said. "We are just trying to respond to the curiosity about the German model."

The longer the US recovery continues, the more that curiosity increases. The US faces a deepening mismatch between what its labour market needs and what the education system is producing. There are two sides to this paradox. First, the US is underskilled. It has high unemployment at a time when there are 3.5m job vacancies, according to the Bureau of Labor Statistics. Some economists argue that the US "skills gap" is imaginary - a shortage of engineers would have shown up in salary inflation, which has not happened. The average hourly cost of a US manufacturing worker is $32. In Germany it is $48. Yet US employers insist the shortage of skilled labour is a growing problem.

Posted by Jim Zellmer at April 16, 2013 1:46 AM
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