2. Low-qualified workers in Berlin and their career guidance options

Over the past decade, Berlin has experienced a strong upswing in the labour market. The number of employed individuals increased almost 36% between 2010 and 2019 (cf. Germany: +20%). This upswing was largely driven by part-time workers, whose share rose from 24% to 34% as well as by immigration to Berlin from other parts of Germany and from abroad (IAB, 2021[1]).

The labour market in Berlin was more affected by the pandemic than the rest of Germany. A quarter of all workers worked in sectors that were severely affected by containment measures, notably tourism and leisure, hospitality (accommodation and catering) and culture and entertainment.

The extensive use of the German short-time work (STW) scheme has prevented mass lay-offs. In some manufacturing industries (electrical industry/ mechanical engineering, manufacturing of other goods) and automobile trade, however, STW is expected to turn into persistent employment declines, as these industries had already been experiencing below-average growth before the crisis. According to BiBB-IAB projections (IAB, 2021[2]), jobs will be lost primarily in manufacturing, but also in construction and in selected areas of the information and communication industry (publishing, audio-visual media and broadcasting and telecommunications).

Supporting workers in these industries through career guidance will be crucial to help them transition to jobs in high demand and to prevent surges in unemployment in the mid and long term. Low-qualified adults stand to profit the most from this support, as they require more advice on training and employment opportunities.

Berlin’s working population is quite polarised by education. While Berlin is the federal state employing the highest share of adults holding a tertiary degree in Germany, it also employs an above average share of low-qualified adults. Based on the latest data available, more thatn 12% of employees1 (13% of all adults (Eurostat, 2020[3])) in Berlin were low qualified compared to 10% (14%) in Germany on average (BA, 2020[7]). The following sections describe their labour market conditions and the structural changes that are expected to affect them.

This chapter analyses the need for career guidance in Berlin and the programmes already in place, with a particular focus on the situation of and services available for low-qualified workers. The main data sources used in this chapter are (i) the micro census conducted in 2018/19 by the federation and the federal states and (ii) the employment statistics of the BA from between 2018 and 2021, depending on the indicator. More details on the data can be found in Annex A.

Information on low-qualified adults provides a good approximation of the socio-demographic characteristics of individuals in this group. Composition is important to drive the nature of career guidance services and the channels through which career guidance is delivered. Among low-qualified adults in Berlin, there are slightly more men than women. Migrants are heavily over-represented among the low-qualified, making up more than half of the group (Statistik Berlin Brandenburg, 2019[8]).

Research shows that low-qualified adults have more limited labour market opportunities compared to those with a vocational degree (BIBB, 2021[9]) and are in addition disproportionally affected by structural and technological developments. In Berlin, only 39% of low-qualified adults (age 25 and above) are in employment (Statistik Berlin Brandenburg, 2019[10]), compared to 66% on average. This underscores the importance of supporting low-qualified employees to facilitate their transition to emerging sustainable employment opportunities.

Low-qualified employees in Berlin are also more likely to be underemployed: 38% work in part time employment compared to 33% on average in Berlin and 28% on average in Germany (Statistik Berlin Brandenburg, 2019[11]). Women and migrants are more likely to be employed part-time. In most cases, part-time employment, especially when involving few hours of work and low wages is involuntary and reflects difficulties in identifying opportunities for full-time work. Career guidance has the potential to support employees wanting to move out of under-employment.

Being low qualified also has a significant impact on earnings. The Structure of Earnings Survey, conducted every four years, found that in 2018 low-qualified employees earned an average of EUR 10.94 per hour in Berlin, while employees with a vocational qualification earned EUR 16.21 per hour (Statistik Berlin Brandenburg, 2018[4]). Similarly, qualification levels are closely related to the risk of poverty. In Berlin, 40% of low-qualified adults are at risk of poverty. With an intermediate degree (ISCED 3.4), the risk of poverty is 15%, similar to the German average (15%), while a high educational attainment reduces the risk of poverty to a below-average 7% (Statistik Berlin Brandenburg, 2019[5]). Supporting adults in reaching higher levels of qualification can significantly improve their financial situation.

Most workers in Berlin work in the service sector (87%) (BA, 2021[12]), which has been hit hard by the COVID-19 pandemic. This is particularly the case for low-qualified adults who work mostly in retail, followed by social care jobs (excluding care homes), gastronomy, education and teaching, building maintenance and health care. Many of the low qualified working in the service sector are women (IAB, 2020[13]).

Low-qualified adults in Berlin mainly work in SMEs (61%). Recent evidence shows that employees in SMEs generally receive less career guidance and training on the job compared to those working for larger enterprises (OECD, 2021[14]). Germany and Berlin in particular, have initiatives in place to support SMEs in the provision of career guidance and training to their employees, which is an important step in the right direction.

Despite a good outlook in Berlin on average, a large share of low-qualified workers are in jobs at risk of automation for which demand is decreasing. Research by the IAB shows that the automation potential (Substituierbarkeitspotenzial) in Berlin is one of the lowest in Germany, with 15% of employees working in jobs with a high potential for automation.2 This average hides significant variation. While automation potential is certainly low for Berlin’s large share of high qualified adults working in non-routine high-skilled jobs (IAB, 2019[15]), low-qualified employees working in helper jobs – those requiring simple, less complex (routine) activities (Box 2.1) – are extremely vulnerable to automation. Figure 2.1 shows that in Berlin the automation potential among adults working in helper jobs is high at almost 50%, much higher than for adults working in expert or specialist jobs. Personalised career guidance could play a big role in supporting transitions to other sectors and occupations.

Although the risk of automation for employees in skilled jobs – requiring 2-3 years of vocational training – is approximately the same as for helper jobs, the demand in skilled jobs is still significantly higher and growing faster compared to the demand in helper jobs in Berlin (BA, 2019[17]). Over recent years (2014-18), twice as many additional skilled jobs3 were created in Berlin compared to helper jobs. Looking at the different occupations, labour supply exceeds demand strongly in transport, logistics, protection and security (12 unemployed per vacancy), the second most held occupations by low-qualified adults (BA, 2021[18]).

Job vacancy statistics4 confirm a decline in openings for helper jobs in Germany. Among all job offers posted online, the share of helper jobs has declined over the past years and particularly during the COVID-19 crisis (IMF, 2020[19]; OECD, 2021[20]; OECD, 2021[21]). While it is true that most job offers for helper jobs are not posted online, the available data support the trend of a declining growth in the demand for low-qualified labour.

This section looks at the structures put in place to guide adults through the changing world of work. While, as stated above, no career guidance designed specifically for low-qualified workers exists in Germany, the offers listed below are open to all adults and are complemented by services that are particularly relevant for low-qualified workers. In addition, employers have access to support in planning their skills needs, provide career guidance and in investing in training for their employees.

As mentioned before, the career guidance offers in Berlin are organised in a core network called Guidance on Education and Profession (Berliner Beratung zu Bildung und Beruf, BBB). It is complemented by the BA’s LBBiE, the VHS programmes and programmes organised through the IQ-Network and the guidance network Career Progression for Women (Table 2.1). A centralised platform provides information and contact details of all BBB locations, as well as of those institutions and networks they co-operate with. So far, career guidance offers by social partners are excluded, but may be included in the future.

In Berlin, the Berlin Senate Department for Integration, Labour and Social Affairs, SenIAS, has set up the network Educational Counselling and Career Guidance in Berlin (Berliner Beratung zu Bildung und Beruf, BBB). The core network consists of ten counselling centres, seven of which provide general educational and job related career guidance and three provide specialised support. Specialised centres focus on professional post-qualification (Fachberatung berufliche Qualifizierung, FbQu), on language related career guidance needs (Erfolg mit Sprache und Abschluss, EMSA) and on support for SMEs (Qualifizierungsberatung in KMU). These centres are distributed across the federal state so that almost every district (Bezirk) hosts one of them. Since 2016, the centres are complemented by specialised mobile counselling on education and careers for refugees (Mobile Beratung zu Bildung und Beruf für geflüchtete Menschen, MoBiBe), responding to the challenges Berlin is facing in integrating refugees.

BBB career guidance does not specifically target low-qualified adults but includes services that are particular relevant for this target group, including counselling on:

  • CET.

  • Vocational (re-)orientation and CV.

  • Career prospects and access to employment (career path, career development, application strategy, etc.).

  • Employment and qualification (job situation, in-company qualification, career development and flexibility).

  • Learning, forms of learning and learning strategies.

  • Funding and financing.

All centres carry out a mapping of competences and qualifications, provide computers and internet for (supervised) personal research in CET databases and to prepare application documents, and organise workshops on topics related to applying for jobs, starting a career, returning to work, or learning to learn. Additional services include the assessment of (German) language levels, advice on language courses and the use of the “Infotelefon Weiterbildung” of the BMBF. Berlin is one of the federal states that regulate education and training leave, which BBB also provides guidance on.5

The centres are selected by the SenIAS via a call for tenders and are fully publicly financed. In 2020, a new call for tenders led to the selection of several new career guidance providers and the closing of the popular learning shops (Lernläden). However, the new providers offer similar career guidance services as the learning shops used to provide. A concept paper (Fachkonzept) written by the SenIAS sets principles on the provision of career guidance by the centres:

  • Provision must be free of charge to the individuals and SMEs.

  • The use of career guidance is voluntary.

  • Career guidance must be offered in several languages.

  • Provision must be available city-wide and reachable by public transport.

  • Career guidance services have to be independent of own interests. While the centres often offer in-house adult learning opportunities, they must advertise the services in the best interest of the individual or SME.

The providers are private companies, associations, non-profit organisations that generally develop, advise and implement socially oriented projects in the areas of labour market and employment, lifelong learning, and the promotion of democracy and integration at federal, state and municipal level.

The concept paper also contains common quality standards and the Quality Framework Berlin Model (Qualitätsrahmen Berliner Modell, QBM), to ensure equivalent or comparable quality of the career guidance centres in Berlin. The QBM defines a procedure of recognition and certification of guidance providers in the network, based on the Quality Concept for Guidance (Qualitätskonzept für Beratung) by k.o.s GmbH. It serves to ensure and improve the quality of guidance, which is then validated through an external quality assurance procedure. The guidance providers are awarded a quality seal and accredited according to this procedure every 3 years since 2014. The Quality Co-ordination Office (Koordinierungs-stelle Qualität), run by k.o.s GmbH, moderates and accompanies the BBB on topics such as quality assurance and certification and professionalisation as well as public relations.

In addition, the Quality Co-ordination Office supports providers to foster innovation, modernisation efforts and structural changes via its project “learned further” (weiter gelernt) that focusses specifically on the topics digitalisation, methodology and didactics, competence development, quality management, personnel and organisational development. The concrete services range from workshops, seminars, webinars and advisory services to studies and networking.

The SenIAS runs an online platform6 for the network under the same name, which presents the ten centres, describes their services and provides contact details. As seven of the centres provide general guidance, individuals do not need any prior knowledge on their exact needs, but they can find out together during the guidance process. Users are also invited to browse CET offers through a dedicated search engine and database. In addition to the BBB core network, the online platform also provides links to other actors in the career guidance landscape as part of a broader co-operation network. The BA, for example, has recently added their offers (see Box 2.2) in the area of career guidance (Lebensbegleitende Berufsberatung im Erwerbsleben, LBBiE der Arbeitsagenturen). The VHS, the IQ-Network and the guidance network Career Progression for Women (Berufsperspektiven für Frauen) also offer their expertise on the platform. The vision of the SenIAS and the BA is to have all existing career guidance offers in Berlin included on the website. This would also include offers by business associations, chambers of commerce, guilds, etc.

On the platform, individuals are put in contact with career guidance providers and the latter can redirect them to specialised training providers as well as to district counselling centres, basic education centres and the other actors mentioned above. As such, the access to career guidance services requires no prior knowledge on existing offers from the individual or SME. Behind the scenes, the SenIAS is responsible for the overall co-ordination.

In addition to co-operation with other career guidance providers, BBB centres also work closely with other social services aiming at providing integrated services to the extent possible. For example, debt counsellors are located directly in some of the centres and close relations are established with integration services and social inclusion counselling centres.

The BBB network also runs outreach activities, with a new one recently established specifically for immigrants. General outreach activities have always existed organised by the career guidance centres in co-operation with local associations, neighbourhood houses7 (Nachbarschaftshäuser), neighbourhood management8 (Quartiersmanagement), women’s shelters and cafés (Frauenhäuser, -cafés).

Several other networks play an important role in the career guidance landscape in Berlin and complement the BBB in several ways. Most of the networks are well organised and align the offers of their members on a regular basis.

One network that is mainly known for the provision of adult learning, but which also provides career guidance to adults is the network of adult education centres (Volkshochschulen, VHS). The network links the different VHS sites in Berlin which are otherwise independent providers mostly financed by the districts and participants’ contributions. The VHS in Berlin offer more German language courses compared to other federal states in Germany (OECD, forthcoming[23]), which puts them in a good position to offer career guidance to adults with a migrant background through the contacts that have already been established. MoBiBe, the specialised mobile counselling for refugees, is also located at the VHS facilities.

As described in Chapter 1, another network that operates nationwide, including in Berlin is the IQ-Network. Its central field of action is the recognition of qualifications acquired abroad and the provision of career guidance related to the recognition process. Different initiatives provide counselling services and help migrants find work that matches their qualifications ‒ regardless of the outcome of the recognition procedure. One of the main factors of success of the network is the strong co-operation with other labour market and adult learning institutions in Berlin.

The guidance network Career prospects for women (Berufsperspektiven für Frauen) offers free counselling for women through eight projects at eight locations in Berlin on CET. Some of the eight locations offer general career guidance while others specialise in specific topics such as CET, or transitions into the labour market. The network runs a counselling phone line for migrant women free of charge and in several languages and also offers workshops, discussion groups and computer workstations. It is funded by the Senate Department for Health, Care and Equality, Department of Women and Equality in Berlin.

Finally, the Berlin’s Centre for Basic Education (Grund-Bildungs-Zentrum Berlin, GBZ) offers information and awareness raising initiatives, counselling and networking on adult literacy and basic education topics for individuals, course instructors, multipliers, employees in institutions and companies, decision-makers from politics and society, and media representatives (Berliner Grund-Bildungs-Zentrum, 2021[24]). It is funded by the Senate Department for Integration, Labour and Social Affairs, and works in close co-operation with the VHS. They are currently piloting a concept of mobile counselling.

Experts report the particular difficulty in reaching low-qualified employees via the available career guidance services, agreeing that more personalised guidance via coaches, colleagues and supervisors, especially in, or in co-operation with, companies, would be the best channel to reach this group. However, support services that help enterprises to assess their skills needs, provide career guidance at work and invest in training for their employees would be needed to build capacity among enterprises, particularly SMEs, and to ensure that services benefit low-qualified workers (OECD, 2021[14]).

As described above, one of the BBB counselling centres specialises on support for SMEs (Qualifizierungsberatung in KMU). The centre is currently hosted by the GesBiT mbH, a company running socially oriented projects. Thanks to the funding by Berlin’s Senate Department for Integration, Labour and Social Affairs, all services for SMEs are free of charge and available via various channels. They include counselling on analysing training needs and strategies, on implementing company training goals, on qualifications for employees, on CET funding opportunities and their conditions as well as awareness raising for companies regarding training for low-qualified and older employees and occupational health management.

As in most federal states, the Chamber of Commerce and Industry also offers guidance for companies in Berlin via similar services as the ones listed above. It also offers counselling on other activities aiming at attracting and retaining skilled workers such as organising internships or hiring foreign workers.

Berlin was also one of the first federal states to set up a CET network supported by the BMAS’s federal programme. The networks focus on supporting employers in specific sectors or regions. Among the 39 chosen networks, four will be established in Berlin (Table 2.2). The interest in the creation of networks was strong, which underscores the need for better co-operation and for structured communication channels among actors in the CET landscape.

The BBB network is relatively successful in reaching low-qualified adults, as more than a quarter of the users do not hold a vocational education degree. However, a large share of users are unemployed (39%, down from 55% in 2019), resulting in a duplication of services also provided by the public employment service. As the rationale behind career guidance services is shifting from supporting the unemployed to facilitating labour market transitions, there is a clear opportunity for the network to set a stronger focus on providing career guidance to low-qualified workers.

The data on career guidance in Berlin used in this section cover the services offered by the core BBB network only, including the general BBB programme, the mobile counselling for refugees MoBiBe, the post-qualification guidance FbQu and the service for language related guidance needs EMSA.

The yearly Guidance Monitor (Beratungs-Monitor) includes data and analysis collected within the BBB network in five areas: (i) demand for career guidance and available services; (ii) data on the socio-demographic characteristics of users; (iii) the reasons for seeking career guidance and the content of the guidance sessions; (iv) the outcomes and consequences of the guidance processes and (v) access to guidance services. The latest available data refer to the year 2020. The data show strong differences compared to the pre-pandemic use in 2019, which is why this section includes some comparisons between the two years.

In 2020 counsellors in Berlin held 20 128 counselling sessions with 12 347 individuals, down from 2019 where the figures were 22 438 and 15 886, respectively. The majority of the sessions took place in the context of the general BBB programme (61%) and the remaining ones as part of the specialised programmes: MoBiBe (37%) and FbQu (1%) and EMSA (1%).

Users of the general BBB programme were mostly female (62%) and aged between 35 and 44 years old. Almost half (45%) had a migration background. Twenty-two percent of users did not hold any vocational education degree (2019: 26%), almost twice the share of low-qualified adults in Berlin’s population (12%). In 2019 they constituted the highest share among all users, but the pandemic seems to have shifted the majority of users towards adults holding a university degree in 2020 (28%, up from 22% in 2019).

Almost 26% of BBB users were in full-time employment and 16% were employed part-time (including the German concept of mini-jobs). While 37% of the users were still looking for a new job (Figure 2.2).

In comparison, the users of MoBiBe were primarily male (55%, down from 58% in 2019) and younger than BBB users. Most of them come from Syria, followed by Iran and Afghanistan. In total, almost 73% (up from 66% in 2019) had a school-leaving certificate and 41% held a technical vocational or university degree compared to 34% in 2019.

The most common channel through which adults in Berlin heard about the possibility to use career guidance is their personal environment. In 2020, 23% relied on their friends, family and colleagues. Jobcentres (BA agencies for longer-term unemployed and those in precarious employment) were the second most common channel (18%) in 2019 but were cited less often in 2020 (11%). Instead more adults stated that they already knew about guidance possibilities (16%) and 14% found the information via their own research. Public advertisement campaigns seem to have been less useful in raising awareness of career guidance services, with the exception of refugees using the MoBiBe guidance programme, where 17% reported hearing of the services from a public campaign.

As mentioned above, the pandemic seems to have shifted the focus of career guidance from job intermediation to supporting sustainable transitions to emerging occupations. Sixty-five percent of the users of career guidance services now seek support with career development, (re-)orientation on the labour market and information on further training.

References

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Notes

← 1. Employees subject to compulsory social insurance (Sozialversicherungspflichtig Beschäftigte).

← 2. Automation potential (Substituierungspotenzial) = Proportion of activities that could potentially be done by computers or computer-controlled machines already today. It is divided in high potential (100-70%), medium potential (70-30%) and low potential (30-0%).

← 3. Skilled workers (Fachkräfte) perform professionally oriented activities. As a rule, at least two years of vocational training or comparable competences are required to perform these activities.

← 4. Burning glass data: Burning Glass Technologies (BGT) is an analytics software company that collects, scrapes and analyses job postings from thousands of online sources and job portals. BGT uses text mining to extract and code information from each job description such as experience, qualifications, and skills that employers are seeking. BGT then removes duplicate postings across sites and assigns attributes including geographic locations, required educational qualifications, and industry. BGT data allow for tracking of job vacancy postings, which reflect hiring dynamics, and skills demand at disaggregated level by geography and by detailed occupation and industry.

← 5. In Berlin, leave exists since 1990 and individuals who have worked for at least 6 months in a company are entitled to 10 days per 2 years for over 25-year-old adults and 10 days per year for adults below 25 years old. During the leave, employers are obliged to continue paying the individual’s salary. In few of them, such as Rhineland-Palatine, employers can request government support to cover part of these costs. Direct costs of CET participation are not covered by education and training leave regulation.

← 6. https://beratung-bildung-beruf.berlin.

← 7. Civic initiatives to incentivise interaction between different population groups in a neighbourhood.

← 8. It is a state provision for the social stabilisation of urban districts. Its aim is to play a mediating role between the neighbourhood and the administration (vertical) and between existing neighbourhood institutions (horizontal).

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