Increased training contracts in major corporations versus fewer in small businesses / IfM Bonn reveals: training rates highest in Rhineland-Palatinate and Saarland - revised
The Institute for SME Research (IfM) Bonn, a leading research institute specialising in small and medium-sized enterprises (SMEs), has revealed some interesting insights about the apprenticeship landscape in Germany. According to a report by news aktuell, Rhineland-Palatinate and Saarland have the highest apprenticeship ratio among all German states, while Berlin and Hamburg have the lowest.
The total number of apprentices in the commercial sector and liberal professions reached 1.52 million by the end of December 2024, an increase of approximately 19,000 compared to 2023. However, the report also highlights a concerning trend: micro-businesses (fewer than 10 socially insured employees) are increasingly at a disadvantage in the competition for future skilled workers.
Larger and medium-sized businesses in Germany are seeing an increase in apprenticeships despite economic challenges. This is largely due to their greater resource capacity, enabling them to absorb the significant upfront investment (gross training costs averaging around €21,000 per apprentice) and manage the risk of apprentices possibly leaving after training.
On the other hand, small and micro-enterprises are decreasing their apprenticeship offerings mainly due to financial constraints and uncertainty about return on investment amid a difficult economic environment. Economic headwinds such as recessionary pressures further strain these businesses, leading many to reduce or discontinue apprenticeship positions.
The apprenticeship market overall is facing difficulties due to skills shortages, matching challenges, and employer reluctance stemming from asymmetric information about applicants’ long-term intentions and qualifications. Larger firms may have more structured hiring and training processes to navigate these challenges better than smaller firms.
For detailed statistical data on apprentices, visit the homepage of the Institute for SME Research (www.ifm-bonn.org). The Institute, located in Bonn, Germany, can be contacted at Dr. Jutta Groeschl via phone at +49 228 72997-29 or email at [email protected].
Interestingly, the report shows that larger businesses (+4.6%) and medium-sized businesses (+1.9%) have seen a significant increase in apprenticeships, while the number of apprentices in small and micro-enterprises has decreased (-1.0% / -2.6%).
In summary, economic pressures and investment risks disproportionately impact smaller firms, reducing their apprenticeship intake, while larger and medium-sized firms continue to increase or maintain apprenticeship positions in the commercial sector and liberal professions due to their greater resource capacity and strategic interest in long-term workforce development.
- The financial constraints and uncertainty about return on investment in smaller and micro-enterprises are leading to a decrease in their apprenticeship offerings, whereas larger and medium-sized businesses are increasing their apprenticeships due to their greater resource capacity in finance.
- The Institute for SME Research's report reveals that larger and medium-sized businesses in the business sector are showing a significant increase in apprenticeships, a trend that may be attributed to their interest in education-and-self-development for long-term workforce development.
