Training market: Why young people and companies so often don’t fit together

Sofiia Hrynchak enters the careers counseling center of the Federal Employment Agency. There's not much going on on this August morning: Only rarely does anyone walk through the wide-open doors of the employment agency in Munich's Ludwigsvorstadt-Isarvorstadt district.

Hrynchak, 17, has a counseling appointment this morning because she hasn't yet found an apprenticeship. The Ukrainian native has been living in Germany for three years and graduated from high school this year with her intermediate school leaving certificate. She would like to train as a media designer. The problem: "There aren't that many positions in this field," she says. That's why she's only applied for about five jobs since June.

She originally wanted to study at the SAE Institute in Munich, but discovered that the training there was very expensive. As an alternative to an apprenticeship, she could now be accepted into a job-preparatory training program offered by the employment agency. However, "it's not certain whether they'll accept me," says Hrynchak, because places are limited.

Many young people are currently in the same situation as Sofiia Hrynchak. Theoretically, given the shortage of skilled workers and demographic change, it should be easy for young people to find an apprenticeship. Although many apprenticeships are available, many are searching in vain. These are the so-called "unplaced applicants."

18-year-old Marwa Derouich is also part of this group. This day is her first time at the careers counseling center. She recounts her experiences looking for a training course with reservation. Derouich completed her secondary school leaving certificate this year and would like to train as a computer scientist or technical systems planner. "I'm looking for a job that has a lot to do with math because it's my favorite subject," she says. She has written around 30 applications so far, received around 10 rejections, and only had one interview. The other companies haven't even gotten in touch. "I'm definitely worried," says the 18-year-old. After graduating from school, she has a lot of free time. "I'd like to start something in September," she explains.

The numbers don't initially reflect how difficult it can be: The Federal Employment Agency counted 414,000 applicants from October 2024 to July 2025 – compared to 466,000 apprenticeships. However, the employment agency receives many more applications from companies seeking employment than applicants. Taking this into account, "the market is relatively balanced in terms of positions and applicants," the Federal Employment Agency states. Twenty years ago, there were significantly more applicants than apprenticeships available.

The situation is currently worsening: Compared to the previous year, significantly more applicants were without a training position in July 2025, while at the same time, there are also fewer training positions available. This is likely due primarily to the weakening economy. However, the Federal Employment Agency believes that the fact that companies have been unable to fill their training positions in the past could also play a role.

The long-term trend is clear: both the proportion of unfilled apprenticeships and the proportion of unplaced applicants have increased significantly. It's becoming increasingly difficult for applicants and companies to find each other.

There are significant regional differences: While apprentices are desperately needed in Bavaria and Baden-Württemberg, the situation is worse for applicants in Berlin and Hesse. However, since many young people are unwilling to relocate for an apprenticeship, the two often don't mesh. This is also the case for Sofiia Hrynchak: Moving to another city for her apprenticeship is out of the question, she says. Her mother doesn't speak German well and therefore needs her support.

In addition, young people's career aspirations often differ fundamentally from what the job market offers. There is a shortage of applicants, especially in food-related professions such as baking, as well as in the construction industry, skilled trades, and the hotel and catering industry. Media professions, such as media design—the profession Hrynchak would like to pursue—are popular among young people. The timeless profession of undertaker is also relatively popular.

Often, qualifications are a problem. Young people with a high school diploma have a better chance of securing an apprenticeship than those with a secondary school diploma or a lower secondary school diploma. However, very often, what young people bring with them after school doesn't match the requirements of companies at all.

According to a survey by the German Chamber of Industry and Commerce (DIHK), companies place particular importance on the work and social skills of their trainees. The majority of surveyed companies criticized deficits in this area. Basic academic skills were also sometimes lacking. DIHK Deputy Managing Director Achim Dercks appealed to the ministries of education: "Schools must prepare their students for professional life." This includes basic skills such as arithmetic and writing as well as soft skills such as reliability, commitment, and a willingness to learn.

But why is the situation getting worse rather than better? Barbara Schwengler, who works at the Institute for Employment Research, says that the expectations of young people and the requirements of companies are increasingly diverging. As a result, training contracts are increasingly being terminated before the training is completed.

Silvia Annen, professor of business education at the University of Bamberg, suspects another reason. Demographic change in Germany is being partially offset by immigration. "That's very good and important, and without it, things would probably be even worse," explains Annen. Nevertheless, the language barrier is often a major hurdle.

It's not as if politicians aren't aware of the problem on the training market. The Training Guarantee Act came into force in 2024. It provides for counseling and support services, such as career orientation internships. A mobility allowance is intended to make relocation easier for trainees: In the first year of training, a certain number of trips home to see their families are funded. Under certain conditions, young people are even entitled to off-the-job vocational training.

According to forecasts by the Standing Conference of the Ministers of Education and Cultural Affairs of the Länder in the Federal Republic of Germany (Kultusministerkonferenz), the number of school leavers is expected to rise again from 2027 onwards, after many years of decline. However, the number of young people without school qualifications has also been increasing slightly for several years; according to a study by educational researcher Klaus Klemm, almost 56,000 students will leave general education schools without a qualification in 2023. Furthermore, approximately one in five people between the ages of 20 and 34 lacks a vocational qualification.

At the same time, Annen "assumes that the supply of apprenticeships will remain stable," especially as the Boomer generation retires in the coming years, which will further exacerbate the shortage of skilled workers.

Business and academia have similar ideas about how to improve the training market; they want more career guidance and practical insights in schools. Annen would even like to see "career choice" included as a school subject. The mobility of young people in training must also be supported more strongly, for example through a trainee ticket and more trainee dormitories. Furthermore, training must be viewed as equivalent to university studies, and career opportunities after training must be highlighted – in recent years, the trend has been toward higher educational qualifications. Furthermore, Annen says, policymakers must manage migration more specifically. She calls for better integration of people with a migration background and more support for trainees from companies and vocational schools.

Andrea Nahles, head of the Federal Employment Agency, appeals to young people and companies alike: “Be flexible!” She hopes that companies will give young people a chance even “if they don’t fit the profile perfectly at first glance.”