Dealing with Youth Unemployment and Skilled Labour Shortage

Abstract

Countries that experience dramatic demographic change, with a seriously aging population and very low birth rates, have been confronted with a steady decrease of an active labour force. South Korea and Germany are such case examples; countries with relatively high youth unemployment and a shortage of skilled labour that can meet the demands of companies and the changing global market economy. This paper investigates and compares the vocational training systems of South Korea and Germany and the extent to which these systems have been successful in training job related skills and in absorbing young people into the labour market. The paper puts vocational training into historical context and examines recent trends and changes. In its’analysis, it focuses on the recently introduced Meister- schools in South Korea and on the German-style dual Vocational Education and Training (VET). The question of how attractive and effective is vocational training is raised in this short investigation. The findings highlight that whilst both VET systems have a long history and many improvements in the school-to-work transition have been achieved, vocational training in Germany has been much more positively received than in the case of South Korea. The paper argues that socio-economic and cultural factors - especially the contrasting values placed on academic education, the different insurance motives of families, and the level of power of the educational industry ? significantly influence the success of vocational training in those countries.