Apprenticeships Around the World: How Global Models Are Shaping the Future Workforce and Tackling Skills Gaps

A Global Perspective on Workforce Planning and Skills Gaps

As skills shortages and workforce development challenges rise worldwide, apprenticeships continue to be hailed as critical tools for addressing these issues.

In this article, we look at global models to understand how apprenticeships are impacting skills shortages across the globe. While the UK has made significant strides, valuable lessons can be drawn from the way other nations are using apprenticeships to tackle both present and future skills shortages.

Germany: Addressing Skills Gaps Through the Dual Education System

Germany’s dual education system is often cited as the gold standard for vocational training. It offers a solution to skills shortages in industries such as manufacturing, engineering, and healthcare. Approximately 60% of young Germans participate in this system, splitting their time between classroom education and hands-on work experience with companies. This model creates a direct pipeline of skilled workers, addressing real-time industry needs.

Impact on Workforce Planning: Germany’s youth unemployment rate is just 5.8%, one of the lowest in Europe, mainly due to this apprenticeship model. With over 300 recognised occupations in the program, the system directly aligns with workforce demand, ensuring that industries consistently inflow skilled professionals.

Key Statistic: According to the Federal Institute for Vocational Education and Training (BIBB), over 80% of apprentices in Germany are offered permanent contracts with their employer after completing their training, highlighting its effectiveness as a workforce strategy.

Switzerland: Flexibility and Lifelong Learning

Switzerland’s apprenticeship system also adopts a dual approach, with approximately 70% of students engaging in vocational education and training (VET). This highly adaptable model has programs across more than 230 professions. A notable aspect of the Swiss model is its focus on lifelong learning, enabling young people and adults to reskill and upskill throughout their careers.

Impact on Workforce Planning: Switzerland’s flexible system has created one of the most competitive labour markets globally. By allowing workers to update their skills continually, Swiss companies remain agile and innovative, even in the high-tech and financial services sectors, where the need for cutting-edge skills is pressing.

Key Statistic: In Switzerland, companies contribute around CHF 5.3 billion annually to VET programs, while the federal government invests approximately CHF 3.4 billion, demonstrating the shared responsibility across sectors.

United States: Industry-Led, but Catching Up

In the US, apprenticeships have traditionally been concentrated in the skilled trades, such as construction and plumbing. However, there has been a recent surge in non-traditional sectors like IT, healthcare, and cybersecurity. Apprenticeships in the US are primarily employer-driven, with companies like Amazon and Microsoft investing heavily in these programs to address their skills gaps.

Impact on Workforce Planning: While the US still lags behind European countries in participation rates, apprenticeships are gaining traction as a solution to sector-specific skills shortages. The Expanding Apprenticeships Initiative has been designed to create 1 million new apprenticeship opportunities across various industries by 2025.

Key Statistic: According to the US Department of Labor, apprenticeship participation in the US increased by 70% from 2011 to 2021, largely due to new industries embracing the model.

Australia: Boosting Participation and Retention

Australia’s apprenticeship system covers traditional trades and emerging industries like advanced manufacturing and green technologies. The system has seen fluctuating participation rates, but recent reforms, including wage subsidies for employers, have boosted apprenticeship starts, particularly in regions facing skills shortages.

Impact on Workforce Planning: Australia’s focus on incentivising employers has been key in filling workforce gaps. In industries such as construction and mining, apprenticeships are helping to build a more sustainable talent pipeline.

Key Statistic: In 2023, Australia saw a 22% increase in apprenticeship commencements, particularly in regions with critical workforce shortages.

UK: The Role of Higher-Level Apprenticeships

Like Germany, the UK set the standards for Apprenticeships, with the levy driving a focus on degree apprenticeships, which allow individuals to earn higher education qualifications while gaining practical work experience.

Impact on Workforce Planning: Higher-level apprenticeships are helping to address the growing skills gap in fields like technology, engineering, and finance. Employers increasingly recognise that apprenticeships offer a viable alternative to traditional graduate recruitment, creating a more diverse talent pipeline that aligns closely with their operational needs.

Key Statistic: In 2022/23, 44% of all apprenticeships started in the UK were at the advanced level, and 33% were at the higher level, showing a shift towards more specialised skills training.

Recommendations for Senior Leaders:

1. Leverage Public-Private Partnerships: Countries like Germany and Switzerland have proven that successful apprenticeship programs require strong partnerships between government, businesses, and educational institutions. For UK and US companies, deepening collaboration with education providers will ensure that apprenticeship curricula meet evolving industry needs.

2. Focus on Emerging Sectors: As automation, AI, and digitalisation reshape industries, apprenticeships should expand beyond traditional trades. Programs should be tailored to fill skills gaps in technology, healthcare, and green energy sectors. For instance, the UK’s degree apprenticeships are a great example of adapting to these new demands.

3. Invest in Lifelong Learning: As seen in Switzerland and the UK, lifelong learning through apprenticeships can help workers continuously upgrade their skills. Employers should explore how to integrate apprenticeship programs that cater to mid-career professionals looking to reskill, which will help maintain an agile, future-ready workforce.

4. Data-Driven Workforce Planning: Senior leaders should use data to understand the most significant skills shortages and tailor apprenticeship programs accordingly. Monitoring retention rates, workforce demand, and industry trends will allow organisations to optimise apprenticeship investments and ensure long-term workforce sustainability.

A Strategic Solution to Skills Shortages and Workforce Planning

Globally, apprenticeships are becoming an increasingly vital tool for workforce development. Countries like Germany and Switzerland demonstrate that a well-structured apprenticeship system can address skills shortages and enhance workforce planning. For senior leaders, the key takeaway is that apprenticeships, when aligned with industry needs and integrated into lifelong learning strategies, offer a powerful solution to bridging skills gaps and creating a future-ready workforce.