[House Hearing, 116 Congress] [From the U.S. Government Publishing Office] SCALING UP APPRENTICESHIPS: BUILDING ON THE SUCCESS OF INTERNATIONAL INTERNATIONAL APPRENTICESHIP MODELS ======================================================================= HEARING BEFORE THE SUBCOMMITTEE ON HIGHER EDUCATION AND WORKFORCE INVESTMENT COMMITTEE ON EDUCATION AND LABOR U.S. HOUSE OF REPRESENTATIVES ONE HUNDRED SIXTEENTH CONGRESS FIRST SESSION __________ HEARING HELD IN WASHINGTON, DC, JULY 16, 2019 __________ Serial No. 116-35 __________ Printed for the use of the Committee on Education and Labor [GRAPHIC NOT AVAILABLE IN TIFF FORMAT] Available via the World Wide Web: www.govinfo.gov or Committee address: https://edlabor.house.gov __________ U.S. GOVERNMENT PUBLISHING OFFICE 37-321 PDF WASHINGTON : 2021 -------------------------------------------------------------------------------------- COMMITTEE ON EDUCATION AND LABOR ROBERT C. ``BOBBY'' SCOTT, Virginia, Chairman Susan A. Davis, California Virginia Foxx, North Carolina, Raul M. Grijalva, Arizona Ranking Member Joe Courtney, Connecticut David P. Roe, Tennessee Marcia L. Fudge, Ohio Glenn Thompson, Pennsylvania Gregorio Kilili Camacho Sablan, Tim Walberg, Michigan Northern Mariana Islands Brett Guthrie, Kentucky Frederica S. Wilson, Florida Bradley Byrne, Alabama Suzanne Bonamici, Oregon Glenn Grothman, Wisconsin Mark Takano, California Elise M. Stefanik, New York Alma S. Adams, North Carolina Rick W. Allen, Georgia Mark DeSaulnier, California Lloyd Smucker, Pennsylvania Donald Norcross, New Jersey Jim Banks, Indiana Pramila Jayapal, Washington Mark Walker, North Carolina Joseph D. Morelle, New York James Comer, Kentucky Susan Wild, Pennsylvania Ben Cline, Virginia Josh Harder, California Russ Fulcher, Idaho Lucy McBath, Georgia Van Taylor, Texas Kim Schrier, Washington Steve Watkins, Kansas Lauren Underwood, Illinois Ron Wright, Texas Jahana Hayes, Connecticut Daniel Meuser, Pennsylvania Donna E. Shalala, Florida William R. Timmons, IV, South Andy Levin, Michigan* Carolina Ilhan Omar, Minnesota Dusty Johnson, South Dakota David J. Trone, Maryland Fred Keller, Pennsylvania Haley M. Stevens, Michigan Susie Lee, Nevada Lori Trahan, Massachusetts Joaquin Castro, Texas * Vice-Chair Veronique Pluviose, Staff Director Brandon Renz, Minority Staff Director ------ SUBCOMMITTEE ON HIGHER EDUCATION AND WORKFORCE INVESTMENT SUSAN A. DAVIS, California, Chairwoman Joe Courtney, Connecticut Lloyd Smucker, Pennsylvania, Mark Takano, California Ranking Member Pramila Jayapal, Washington Brett Guthrie, Kentucky Josh Harder, California Glenn Grothman, Wisconsin Andy Levin, Michigan Elise Stefanik, New York Ilhan Omar, Minnesota Jim Banks, Indiana David Trone, Maryland Mark Walker, North Carolina Susie Lee, Nevada James Comer, Kentucky Lori Trahan, Massachusetts Ben Cline, Virginia Joaquin Castro, Texas Russ Fulcher, Idaho Raul M. Grijalva, Arizona Steve C. Watkins, Jr., Kansas Gregorio Kilili Camacho Sablan, Dan Meuser, Pennsylvania Northern Mariana Islands William R. Timmons, IV, South Suzanne Bonamici, Oregon Carolina Alma S. Adams, North Carolina Donald Norcross, New Jersey C O N T E N T S ---------- Page Hearing held on July 16, 2019.................................... 1 Statement of Members: Davis, Hon. Susan A., Chairwoman, Subcommittee on Higher Education and Workforce Investment......................... 1 Prepared statement of.................................... 3 Smucker, Hon. Lloyd, Ranking Member, Subcommittee on Higher Education and Workforce Investment......................... 4 Prepared statement of.................................... 5 Statement of Witnesses: Annen, Dr. Silvia, Ph.D., Senior Researcher, Federal Institute for Vocational Education and Training, Bonn, Germany.................................................... 13 Prepared statement of.................................... 16 Bradley, Mr. Tim, Minister Counsellor for Industry, Science, and Education, Embassy of Australia........................ 7 Prepared statement of.................................... 10 Marti, Dr. Simon, Ph.D., Head of Office, Swisscore, Brussels, Belgium.................................................... 23 Prepared statement of.................................... 25 Additional Submissions: Mr. Bradley: Slides: Australian Apprenticeships....................... 76 Chart: Apprentices and Trainee 2018-December Quarter..... 80 Link: Strengthening Skills............................... 90 Guthrie, Hon. Brett, a Representative in Congress from the State of Kentucky: Prepared statement from the American of Institute Certified Public Accountants........................... 91 Levin, Hon. Andy, a Representative in Congress from the State of Michigan: Article: U.S. Needs More Tradespeople.................... 50 Questions submitted for the record by: Chairwoman Davis Foxx, Hon. Virginia, a Representative in Congress from the State of North Carolina Sablan, Hon. Gregorio Kilili Camacho, a Representative in Congress from the Northern Mariana Islands Responses to questions submitted for the record by: Dr. Annen................................................ 100 Mr. Bradley.............................................. 112 Dr. Marti................................................ 117 SCALING UP APPRENTICESHIPS: BUILDING ON THE SUCCESS OF INTERNATIONAL APPRENTICESHIP MODELS ---------- Tuesday, July 16, 2019 House of Representatives, Subcommittee on Higher Education and Workforce Investment, Committee on Education and Labor, Washington, D.C. ---------- The subcommittee met, pursuant to call, at 10:16 a.m., in Room 2175, Rayburn House Office Building, Hon. Susan Davis (Chairwoman of the subcommittee) presiding. Present: Representatives Davis, Courtney, Takano, Jayapal, Harder, Levin, Trone, Bonamici, Adams, Norcross, Scott (ex officio), Smucker, Guthrie, Grothman, Stefanik, Walker, Cline, Watkins, Meuser, Timmons, and Foxx (ex officio). Also Present: Representatives Wild and Keller. Staff Present: Tylease Alli, Chief Clerk; Ilana Brunner, General Counsel; Emma Eatman, Press Assistant; Ariel Jona, Staff Assistant; Stephanie Lalle, Deputy Communications Director; Jaria Martin, Clerk/Assistant to the Staff Director; Katie McClelland, Professional Staff; Richard Miller, Director of Labor Policy; Max Moore, Office Aide; Udochi Onwubiko, Labor Policy Counsel; Veronique Pluviose, Staff Director; Banyon Vassar, Deputy Director of Information Technology; Rolie Adrienne Webb, Education Policy Fellow; Courtney Butcher, Minority Director of Coalitions and Members Services; Cate Dillon, Minority Staff Assistant; Bridget Handy, Minority Communications Assistant; Dean Johnson, Minority Staff Assistant; Amy Raaf Jones, Minority Director of Education and Human Resources Policy; Hannah Matesic, Minority Director of Operations; Jake Middlebrooks, Minority Professional Staff Member; Carlton Norwood, Minority Press Secretary; Brandon Renz, Minority Staff Director; Chance Russell, Minority Legislative Assistant; Mandy Schaumburg, Minority Chief Counsel and Deputy Director of Education Policy; Brad Thomas, Minority Senior Education Policy Advisor. Chairwoman Davis. Good morning. The Subcommittee on Higher Education and Workforce Investment will come to order. I note that a quorum is present. I note for the subcommittee that Representative Susan Wild of Pennsylvania will be permitted to participate in today's hearing, with the understanding that her questions will come only after all Members of the Subcommittee on Higher Education and Workforce Investment on both sides of the aisle who are present have an opportunity to question the witnesses. The subcommittee is meeting today to hear testimony on ``Scaling Up Apprenticeships: Building on the Success of International Apprenticeship Models.'' Pursuant to Committee Rule 7(c), opening statements are limited to the Chair and the Ranking Member, and this allows us to hear from our witnesses sooner and provides all Members with adequate time to ask questions. I recognize myself now for the purpose of making an opening statement. Before I begin, I would like to thank our distinguished witnesses for traveling across the globe to testify today. We are delighted to have you. The committee appreciates the time you have taken to prepare your testimony and inform us of the structure and outcomes in your respective apprenticeship systems. Today, we look forward to learning more about the apprenticeship systems of Australia, Germany, and Switzerland, including how these systems strike a balance between strong government oversight and the flexibility to meet the needs of employers and the labor market through innovation. We hope to use what we learn today to strengthen apprenticeship opportunities here in the United States. A U.S. registered apprenticeship program has long provided Americans the opportunity to learn valuable on-the-job skills and earn a stackable and nationally recognized credential that serves as a pathway to the middle class. It is my hope that we can work together on a bipartisan basis to help scale this model. For years, the Australian, German, and Swiss apprenticeship systems have been the gold standard of apprenticeship programs around the world. And they are not only highly popular and well-supported, but they also provide nationally recognized and portable credentials valued by apprentices and employers alike. In Switzerland, fully 1 percent of gross domestic product is dedicated to apprenticeships, with the private sector covering 60 percent, the cantons or states funding 30 percent, and the federal government covering about 10 percent. In the U.S., this level of Federal support would amount to approximately $20 billion per year, nearly two times the total discretionary budget for the entire U.S. Department of Labor today. Some impressive numbers. In Germany, the dual system of vocational education and training supports the economy and contributes to a youth unemployment rate of 5 percent, the lowest in the European Union. And this compares with 12.7 percent in the U.S., according to the Bureau of Labor Statistics. In Australia, the apprenticeship system offers more than 500 occupational apprenticeships and traineeship pathways, including a digital apprenticeship program open to anyone of working age. All three countries, all three countries have implemented research and evaluation components which support the continuous evolution of the system and adoption of evidence-based best practices. During our discussion today, we will examine how these successful international apprenticeship systems utilize substantial investments from both government and participating employers. I am excited to hear from Dr. Simon Marti, as I was so impressed during my visit to Switzerland with how their apprenticeship system is integrated into their education system and provides permeable pathways for students to choose from. We will also examine how successful apprenticeship systems look to their state and federal governments for strong national standards to ensure consistent quality and strong protections for apprentices. I look forward to exploring how the German apprenticeship system relies on recognized occupations and training regulations to set nationally recognized quality standards for apprenticeships. These standards ensure that apprentices earn credentials that are recognized, not only by employers across Germany, but across the European Union. We will be especially interested in learning how successful apprenticeship models expand into new economic sectors through employer collaboration, union involvement, and adoption of guardrails to ensure quality. I am particularly eager to learn more about the Australian apprenticeship system, which incentivizes new apprenticeship opportunities in high-demand occupations while also prioritizing the recruitment of underserved groups, such as indigenous Australians and people with disabilities. Today's hearing is truly a unique opportunity for this committee to discuss best practices for strengthening government oversight, industry innovation, and educational alignment that we can look to apply to our national apprenticeship system. These discussions will be a crucial resource as this committee considers apprenticeship legislation to strengthen apprenticeship opportunities for all Americans. Thank you again to our witnesses for being here today. I look forward to our discussion. I wanted to also note that I am pleased to be proceeding with this hearing on a bipartisan basis. I now yield to my colleague Mr. Smucker for his opening statement. [The statement of Chairwoman Davis follows:] Prepared Statement of Hon. Susan A. Davis, Chairwoman, Subcommittee on Higher Education and Workforce Investment Before I begin, I'd like to thank our distinguished witnesses for traveling across the globe to testify today. The Committee appreciates the time you've taken to prepare your testimony and inform us of the structure and outcomes in your respective apprenticeship systems. Today, we look forward to learning more about the apprenticeship systems of Australia, Germany, and Switzerland, including how these systems strike a balance between strong government oversight and the flexibility to meet the needs of employers and the labor market through innovation. We hope to use what we learn today to strengthen apprenticeship opportunities here in the U.S. The U.S. Registered Apprenticeship program has long-provided Americans the opportunity to learn valuable on- the-job skills and earn a stackable and nationally recognized credential that serves as a pathway to the middle class. It is my hope that we can work together on a bipartisan basis to help scale up this model. For years, the Australian, German, and Swiss apprenticeship systems have been the gold standard of apprenticeship programs around the world. They are not only highly popular and well-supported, but also provide nationally-recognized and portable credentials valued by apprentices and employers alike. * In Switzerland, fully 1 percent of Gross Domestic Product is dedicated to Apprenticeships, with the private sector covering 60 percent, the cantons or states funding 30 percent, and the federal government covering 10 percent. In the U.S., this level of federal support would amount to approximately $20 billion per year, nearly two times the total discretionary budget for the entire U.S. Department of Labor today. * In Germany, the dual system of vocational education and training supports the economy and contributes to a youth unemployment rate of 5 percent, the lowest in the European Union. This compares with 12.7 percent in the U.S., according to the Bureau of Labor Statistics. * In Australia, the apprenticeship system offers more than 500 occupational apprenticeships and traineeship pathways, including a Digital Apprenticeship Program, open to anyone of working age. All three countries have implemented research and evaluation components, which support the continuous evolution of the system and adoption of evidence-based best practices. During our discussions today, we will examine how these successful international apprenticeship systems utilize substantial investments from both governments and participating employers. I am excited to hear from Dr. Simon Marti, as I was so impressed during my visit to Switzerland with how their apprenticeship system is integrated into their education system and provides permeable pathways for students to choose from. We will also examine how successful apprenticeship systems look to their state and federal governments for strong national standards to ensure consistent quality and strong protections for apprentices. I look forward to exploring how the German apprenticeship system relies on recognized occupations and training regulations to set nationally- recognized quality standards for apprenticeships. These standards ensure that apprentices earn credentials that are recognized not only by employers across Germany, but across the European Union. We will be especially interested in learning how successful apprenticeship models expand into new economic sectors through employer collaboration, union involvement, and adoption of guardrails to ensure quality. I am particularly eager to learn more about the Australian apprenticeship system, which incentivizes new apprenticeship opportunities in high-demand occupations, while also prioritizing the recruitment of underserved groups, such as Indigenous Australians and people with disabilities. Today's hearing is a unique opportunity for this Committee to discuss best practices for strengthening government oversight, industry innovation, and educational alignment that we can possibly apply to our National Apprenticeship System. These discussions will be a crucial resource as this Committee considers apprenticeship legislation to strengthen apprenticeship opportunities for all Americans. Thank you, again, to our witnesses for being here today. I look forward to our discussion. Before I yield to the Ranking Member, I wanted to note that I am especially pleased to be holding this hearing on a bipartisan basis. ______ Mr. Smucker. Thank you for yielding. I would like to start by thanking the Chairwoman for scheduling this hearing. We have had, personally and in this committee, multiple discussions about the benefits of apprenticeship and earn-while-you-learn programs, and so this is going to be a wonderful discussion here. We have seen a surge in interest for apprenticeships, both here, and I think it is fair to say, across the world, as more employers and small businesses recognize the critical role that apprenticeships play in the development of the skilled workforce. These important programs combine on-the-job learning and classroom-based instruction so that workers receive the development they need to get and to keep a job. Successful workers obviously lead to successful businesses and growth in the economy. Internationally, apprenticeships have transformed workforce development. And so today I am looking forward to hearing from our witnesses from Germany, Switzerland, and Australia so that we can learn more about each of your unique apprenticeship systems. We know that no two countries are exactly alike and the system that you have may not work exactly here in the United States, but we can certainly trade best practices and learn from each of you here today, and I am looking forward to that. To ensure that apprenticeship programs in the U.S. are successful, committee Republicans will continue to support efforts that ease the regulatory burden that many employers face when participating in registered apprenticeships. After all, employers know best what skills their employees need to succeed in the workforce. Employer-led innovation should be encouraged when it comes to work-based learning. We must also work to better integrate education and the workforce so that in-the-classroom and on-the-job development work hand-in-hand to propel all students to excellence and success in a rapidly evolving economy. A crucial aspect of education reform will be addressing the job skills gap in this country which has left thousands of jobs unfilled in our booming economy. Apprenticeships are real ways that we can give American workers and students the skills they need for successful careers. Today's hearing will allow Members to learn more about the variety of apprenticeship models and how we can better innovate to help Americans pursue opportunities that lead to personal and professional growth. So thank you again to each of the witnesses for being here. We look forward to your testimonies. [The statement of Mr. Smucker follows:] Prepared Statement of Hon. Lloyd Smucker, Ranking Member, Subcommittee on Higher Education and Workforce Investment In recent years we've seen a surge in interest for apprenticeships across the world, as more employers and small businesses recognize the critical role apprenticeships play in the development of a skilled workforce. These important programs combine on-the-job learning and classroom - based instruction so that workers receive the development they need to get a job and keep a job. Successful workers lead to successful businesses, which grow and strengthen the U.S. economy. Internationally apprenticeships have transformed workforce development. Today we welcome witnesses from Germany, Switzerland, and Australia so we can learn more about their unique apprenticeship systems. Understanding what is and isn't working among the various international models is valuable, but we must also remember that no two countries are exactly alike, and international models cannot be directly implemented in the United States. To ensure apprenticeship programs in the U.S. are successful, Committee Republicans will continue to support efforts that ease the regulatory burden many employers face when participating in registered apprenticeships. After all, employers know best what skills their employees need to succeed in the workplace. Employer -led innovation should be encouraged when it comes to work-based learning. We must also work to better integrate education and the job force, so that in the classroom and on-the-job development work hand in hand to propel all students to excellence and success in a rapidly evolving economy. A crucial aspect of education reform will be addressing the job skills gap in this country, which has left thousands of jobs unfilled in our booming economy. Apprenticeships are real ways we can give American workers and students the skills they need for successful careers. And today's hearing will allow Members to learn more about the variety of apprenticeship models and how we can better innovate to help Americans pursue opportunities that lead to personal and professional growth. Thank you again to our witnesses, and I look forward to your testimonies. ______ Chairwoman Davis. I want to thank our distinguished Ranking Member, and remind all of our Members that you are able to insert written statements into the record and must submit them to the Committee Clerk electronically in Microsoft Word format by 5 p.m. on July 30. I am pleased to recognize my colleague now, Representative Joe Courtney, to briefly introduce our first witness appearing before us as a witness today. Mr. Courtney. Mr. Courtney. Thank you, Chairwoman Davis. As co-chair of the Friends of Australia Caucus, a bipartisan caucus of Members from the House, I am pleased to introduce Mr. Tim Bradley, Counselor for industry, science and education for the Department of Education at the Australian Embassy in Washington, D.C. In that role, Tim is well-versed in Australian apprenticeship programs, and during his time in the U.S., he has immersed himself in our job training system and challenges and can offer some very useful perspectives about ways we can both learn from each other. I would also note that he is the first witness from the Australian Embassy to testify before Congress since 1994, and he wanted me to extend his thanks to the Chairwoman for the invitation to be here. They are a great ally of our country and, again, we share a lot in terms of approaches to everything from common values and interests and certainly education and economic issues. So, again, we are pleased that he is joining us here today. And, with that, I will yield back. Chairwoman Davis. Thank you, Mr. Courtney. And I will now introduce our remaining witnesses. Dr. Silvia Annen is a senior researcher at the Federal Institute for Vocational Education and Training in Bonn, Germany, which oversees the coordination of all parties involved in German apprenticeship systems. Dr. Annen, as I mentioned in my opening, the committee appreciates the distances that you have traveled and the time that you invested in helping us learn more about the German apprenticeship system. Dr. Simon Marti is the head of office of SwissCore, the Swiss Contact Office for European Research, Innovation, and Education in Brussels. Until June of 2019, he headed the Office of Science, Technology, and Higher Education at the Embassy of Switzerland in the United States of America, Washington, D.C. Dr. Marti also began his career as an apprentice and will be able to provide firsthand insights into the Swiss system. As I mentioned to Dr. Annen just now when we spoke, I wanted to extend our appreciation, of course, for your travels today and the time that you spent informing us, and also thanking you for the trips that my staff and other colleagues took to Switzerland to learn more about their Swiss apprenticeship model. We appreciate all the witnesses for being here today and look forward to your testimony. I want to remind the witnesses that we have read your written statements and they will appear in full in the hearing record. Pursuant to Committee Rule 7(d) and committee practice, each of you is asked to limit your oral presentation to a five- minute summary of your written statement. I also wanted to remind the witnesses that pursuant to Title 18 of the U.S. Code, Section 1001, it is illegal to knowingly and willfully falsify any statement, representation, writing, document, or material fact presented to Congress or otherwise conceal or cover up material fact. Before you begin your testimony, please remember to press the button on the microphone in front of you so that it will turn on and the Members can hear you. As you begin to speak, the light in front of you will turn green, and after four minutes, the light will turn yellow to signal that you have 1 remaining minute. When the light turns red, your five minutes have expired, and we ask you to please wrap up as quickly as you can. We will let the entire panel make their presentation before we move to Member questions. And when answering a question, please remember also to turn your microphone on. I first recognize Mr. Tim Bradley. Thank you, sir. STATEMENT OF TIM BRADLEY, MINISTER COUNSELLOR FOR INDUSTRY, SCIENCE, AND EDUCATION, EMBASSY OF AUSTRALIA Mr. Bradley. Thank you very much. Chairwoman Davis, Ranking Member Smucker, Members of this committee, thank you for inviting me to this hearing today. I am very honored to participate. A special thank you to Congressman Courtney, both for your leadership on the Friends of Australia Caucus and for that special introduction. Thank you. My name is Tim Bradley. I am the minister counselor for industry, science, and education here in the embassy in Washington. The Australian apprenticeship system is essential to developing highly skilled and qualified workers. We drive productivity and deliver the goods and services that underpin a sizable part of the Australian economy. The Australian apprenticeship system delivers nationally recognized, stackable, portable adult and youth apprenticeships that are designed in partnership with local industry and provide access to small, medium, and large businesses. Through a combination of productive work and structured learning, Australian apprenticeships offer the opportunity to obtain a variety of qualifications, all the while earning an income. Anyone of working age can undertake an apprenticeship. They can be started while undertaking the final 2 years of school, known as an Australian school-based apprenticeship. I am using the term ``Australian apprenticeships'' to cover both apprenticeships which are a structured training agreement, typically 3-1/2 to 4 years, that cover skilled trade areas and result in a portable industry recognized qualification, and also traineeships, which tend to be shorter in term and typically cover nontrade occupations, last between 9 months and 2 years. The Australian apprenticeship system is a shared commonwealth-state responsibility where broadly the commonwealth, more specifically the Department of Employment Skill, Small, and Family Business, develops policy, administers the Australian apprenticeship support network and provides incentive payments, and the states and territories, which have responsibility for registering, administering training contracts, and providing support throughout the process. In addition, the Australian apprenticeship support network provides free advice and support before and during an apprenticeship. ASQA, which is the Australian Skilled Quality Authority, the national regulator for Australia's vocational and education training sector, which regulates courses and training providers to ensure nationally approved quality standards are met; and the NCVER, the National Center for Vocational Education Research, which is the national professional body responsible for collecting, managing, analyzing, and communicating research and statistics about the sector. A short note on vocational training in Australia. The VET sector, the Vocational Education and Training sector. VET is provided by registered training organizations who provide nationally recognized courses and qualifications and off-the- job training. They include what we call TAFEs, Tertiary and Further Education colleges, private institutions, industry organizations, and individual businesses. Competency-based training packages are developed in consultation with industry and provide a quality assured standard of training. An integral part of the Australian apprenticeship system is the group training model. Group training organizations enter into training contracts with apprentices and place them with host employers. Group training organizations assume responsibility for quality and continuity of an apprentice's training, as well as providing support services throughout their course. The group training model allows for students to rotate through a series of host employers and facilitates employment with employers that have seasonal or project-specific labor requirements. It also offers apprentices a richer training experience. Financial incentives are provided by the commonwealth government to employers at the time of commencement and completion. Standard incentives vary, depending on the state and territory, but can have a value of up to 4,000 Australian dollars. In addition, special incentives are also provided for those undertaking qualifications in identified skill shortage needs, those with disability, school-based apprenticeships, mature age workers, and for rural and regional apprentices. Apprentices in priority occupations may access income- contingent trade support loans worth up to $21,000 to assist with their living costs while undertaking the apprenticeship. About 160,000 apprentices commenced in 2018. Some 260,000 are training as of the end of last year. This represents about 2 percent of the total workforce. Most apprentices are technicians and trades, including construction workers, automotive and engineering. Community and personal service workers are the next largest category. Apprentices, for the most part, they are male, about 200,000 in the system compared with 63,000 females, and mostly aged under 24. The number of apprentices in the system has stayed relatively constant since about 2014. The Australian Government is committed to an ongoing-- sorry. The Australian Government recognizes the impact that new technologies, global markets, and changing demands will have on the workforce. We have built a system that reflects the need to be adaptable and responsive to those needs and provide core skills required to satisfy the demands of the future. The Australian Government is committed to ongoing reform and improvement of the apprenticeship system and to the VET system at large. A review of the VET system was undertaken last year, with an eye on how the government can ensure millions of Australians have the skills they need to succeed in a changing labor market. I am pleased to say that a whole-of-government task force has just been established to implement those recommendations. Chairwoman Davis, Ranking Member Smucker, thank you again for inviting me to speak today. I hope this has been useful. Thank you. [The statement of Mr. Bradley follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Chairwoman Davis. Thank you. Thank you, Mr. Bradley. Dr. Annen. STATEMENT OF SILVIA ANNEN, PH.D., SENIOR RESEARCHER, FEDERAL INSTITUTE FOR VOCATIONAL EDUCATION AND TRAINING, BONN, GERMANY Ms. Annen. Thank you, Chairwoman Davis, Ranking Member Smucker, and honorable Members of the Subcommittee on Higher Education and Workforce Investment, for inviting me to testify today. I work with the German Federal Institute for Vocational Education and Training, the BIBB. The BIBB is the recognized competence center for researching and developing initial and continuing vocational education and training in Germany. It performs its task based on the Vocational Training Act and works closely with the federal government, the German federal states, and the social partners, the employer organizations and the trade unions. Our institute is committed to the principle of a dialogue between research, politics, and practice, and promotes innovation in national and international vocational education and training. Today in my testimony I have been asked to introduce the German Dual VET system. This system provides a nationally recognized vocational training framework by working with the industry to determine qualifications and training. The dual system of vocational education and training is a major reason why Germany has such a vibrant economy and the lowest youth unemployment rate in the EU. It equips apprentices with sound qualifications through its unique combination of theory and practice, learning and working, hence the name dual system. Participants are thus offered a debt-free, highly attractive, and recognized training and career path after the end of compulsory schooling, either as an alternative to university education or as a complementary option. Job skills are a key ingredient for commercial success in the United States as well as in Germany. German companies, also the ones in the U.S., are particularly well-positioned to provide their workers with these skills, drawing on their experience with Germany's vocational education and training system. In Germany, the federal government stipulates the statutory framework and thus creates a legal certainty for all those involved. But there are two main components to the system. The company component of dual training is regulated in a nationally standardized manner. The school-based component guarantees that specific regional characteristics are taken into account. A statutory framework is required in order to create harmony between the two learning venues in the dual system. All of this together guarantees equivalence and recognition of a training occupation across Germany. In Germany, 52.4 percent of people utilize the Dual VET system to enter the labor market. Dual VET provides a track in the vocational training system of Germany, though not the only one, and typically leads to employment earlier than higher education. In addition, access from Dual VET to higher education, and vice versa, are mutually possible. Dual VET qualifications open up a range of professional opportunities for graduates. VET certificates are nationally recognized throughout Germany as qualifications for employment as well as for continuing education. Because certificates are nationally recognized, graduates have the advantage of being able to find work throughout Germany, a key criteria in ensuring labor force mobility. The Dual VET standards are based on the real world employment requirements, with economic need often driving the updating and development of national Dual VET standards. Employers identify new requirements within their workplaces, which leads to new occupational qualifications. A consensus between the social partners is mandatory to start the development of a new or the updating of an existing occupational qualification. In practice, the social partners and the government negotiate and adopt new standards for in- company training, the training regulations, under the guidance of the BIBB, within multistakeholder expert groups, which represent the employers and employees as well as the federal government and the federal states. These groups meet at the BIBB on average five times over a period of about half a year to discuss and develop the training regulations. The education standards for vocational schools, the framework curricula, are developed and updated in parallel and coordinated with the in-company training standards, the regulations. Dual VET standards simply formalize previously agreed-upon standards by all relevant stakeholders. Hence, the standards are not simply imposed from above, but when finally promulgated, are already accepted by the same stakeholders who are tasked with implementing and monitoring them. Most importantly, they are agreed to by employers who require these skills. These standards guide the delivery, monitoring, supervision, and support of the Dual VET nationwide. The quality assurance guaranteed within the system is essential for its acceptance and success. The key aspects in this regard are the cooperation of the government, the business community, and the social partners, the learning within the work process, the acceptance of national standards, the qualified VET staff, and the institutionalized research and advice. These quality features could provide some guidance toward which elements of the Dual VET could be utilized for strengthening quality of VET in other countries. [The statement of Ms. Annen follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Chairwoman Davis. Thank you very much. Dr. Marti. STATEMENT OF SIMON MARTI, PH.D., HEAD OF OFFICE, SWISSCORE, BRUSSELS, BELGIUM Mr. Marti. Good morning. I want to thank the subcommittee Chairwoman Susan Davis, Ranking Member Lloyd Smucker, and all the Members of the House Committee on Education and Labor, for this invitation and for the opportunity to testify about Switzerland's apprenticeship model. My name is Simon Marti, and I am the head of the office of SwissCore, the Swiss Contact Office for European Research, Innovation, and Education in Brussels. Until only a month ago, I was heading the Science and Education Office here at the Swiss Embassy to the United States, where I was closely involved in the Swiss-American cooperation in apprenticeship. The Swiss State Secretariat for Education, Research, and Innovation has asked me to represent them in this hearing today. It is a pleasure to be back in Washington. Apprenticeships are the most important upper secondary educational pathway in Switzerland. Around two-thirds of our youth start a three- or four-year apprenticeship program at age 16 after having finished compulsory education. They can choose from roughly 230 different occupations which cover all sectors of our economy. Apprenticeships are comprehensive dual pathways, which include an educational part of typically 1 or 2 days per week at the vocational school, and the practical part, usually with a private or public employer during the remaining 3 or 4 days each week. Apprentices do not have to pay tuition. The employers pays them a small salary. Thus, they earn while they learn. I would like to highlight three key features of our apprenticeship model that contributes to its success. It only works so smoothly because the involved actors work closely together in a public-private partnership. The employers play an important role. Over one-third of all Swiss companies that are able to train apprentices choose to do so. They hire young apprentices and offer them the opportunity to learn in actual workstreams, supported by an instructor. Furthermore, the employers, via their professional organizations, are playing an important role in designing apprenticeship programs and updating them on a regular basis. The cantons, which have roughly the same role and autonomy as States do in this country, are providing the vocational schools and career counseling. They also supervise apprenticeship programs in their jurisdiction. Federal legislation guarantees nationwide portability of the different degrees. The federal government supervises the functioning of the system and supports its further development by working with the cantons and professional organizations to adapt it for the future. This division of labor reflects how the system is funded. We invest every year more than 1 percent of our GDP or $9 billion into our apprenticeship system. About 60 percent are contributed by the employers, 30 percent by the cantons, and 10 percent by the federal government. Although the employers contribute the most, they see a positive financial return on investment in terms of costs and benefits. A second success factor is that the apprenticeship system is an integral part of our permeable education system. You can start out on an apprenticeship pathway, and if you have the aptitude and interest to do so, move on to university or further professional certification. There are no dead ends in the system. Multiple options are open at all levels of education. Lifelong learning is a reality in Switzerland. Young students and their parents typically perceive apprenticeships as strong foundations for a promising career or for the continuation of one's educational pathway. The permeability of the Swiss education system also makes it easier for our workforce to adapt to new developments on the labor markets and also to personal interests. Finally, apprenticeships are labor market-oriented. Apprentices learn to work with the latest tools and equipment that the school could not typically afford but the company needs in order to compete in the free market. Furthermore, when an employer is offering an apprenticeship position, it also means that this occupation is relevant in the labor market and there are typically job opportunities once the apprentice graduates. The Swiss system has many positive outcomes. It offers young people a meaningful perspective, prepares them to enter the labor market right after graduating from an apprenticeship program and earning a good salary already at age 19 or in their early twenties. This contributes to a low youth unemployment rate and offers our economy and society the skilled workforce that is necessary to compete in international markets and to flourish. Chairwoman Davis, Ranking Member Smucker, Members of the Committee on Education and Labor, I thank you for your attention. [The statement of Mr. Marti follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Chairwoman Davis. Thank you very much. Now, under Committee Rule 8(a), we will now question witnesses under the five-minute rule. I have decided to go at the end, so I am going to yield to our next senior Member on the Majority side, and he will be followed by the Ranking Member. And we will then alternate between the sides. Mr. Courtney. Mr. Courtney. Thank you, Chairwoman Davis. Again, I want to congratulate you and the Ranking Member for holding this hearing. Frankly, I wish we did more of this, in terms of really learning from other examples around the world. So, again, kudos to both of you. And thank you to all the witnesses for, again, really informing us this morning. Mr. Bradley, again, using Australia as, again, an example of a country which we can learn from, here are the similarities: Australia is a market economy. The structure of its government consists of a federal level and also state level, which you sort of alluded to during your remarks. You also shared with us the fact that you are experiencing a skills gap just like we are. So, obviously, we are sort of all interested in trying to learn from each other as ways to fix that. I guess what I would ask you to do again is if you could sort of walk through the architecture of the arrangement that exists right now in terms of, again, the various organizations. So specifically the registered training organizations that provide nationally recognized courses in qualifications for the training portion of an apprenticeship, using your nationally recognized competency-based training packages. Again, if you could just sort of walk us through how are RTOs, you know, what do they consist of, who basically oversees their performance, and, again, in the context of just sort of explaining the architecture and governance? Mr. Bradley. Thank you. Thank you for the question. So let me reiterate, the VET sector in apprenticeships in Australia is a shared commonwealth and state responsibility. So we have a mechanism we call-- Mr. Courtney. Just to translate into our English, so commonwealth means federal? Mr. Bradley. Being the federal government. Mr. Courtney. Thank you. Mr. Bradley. Shared responsibility between the federal and state governments. So we have a mechanism through which the federal and state governments can get together and kind of have these robust discussions and kind of work out a coordinated policy, national level and state levels, and how that can interact. And that is called the Council of Australian Governments Industry and Skills Council, COAG Skills Council. The Council gets together on a semiregular basis to have these issues, and they can set policy and respond to different demand factors that we are seeing in the market, for example, skill shortages, where are the priority skill shortages, what were the gaps that need to be addressed. That process is kind of working its way through the system now in terms of skill shortages. And just as of earlier this year, a list of priority skill areas was released by the government to say this is where we need to focus our attention. When it gets to--you asked about the RTOs, so registered training organizations are those institutions that deliver the education. They are a mixture of publicly funded colleges, private organizations, and industry groups. They are certified or accredited by a federal body known as ASQA, the Australian Skills Quality Authority, which is responsible for ensuring that what is being provided meets certain standards, is nationally consistent, and meets a variety of criteria. Mr. Courtney. If I could just jump in. So, again, you have got basically that level which establishes sort of a baseline in terms of quality and certification. Again, then that sort of flows down at the state level, again, with employer input in terms of just, you know, the-- Mr. Bradley. When it comes to individual courses, what we call training packages, so those are designed with industry to say, you know, this is--for example, cybersecurity. What does it mean? What would a certificate 3 in cybersecurity need, say, if I was to employ someone who is a cybersecurity specialist or technician? What would I expect from them? And those expectations are heavily provided for by industry. Mr. Courtney. And for an individual who, again, goes through this process and obtains that certification, that certification is portable, right? I mean, that is something that they are not sort of tied to a specific employer or region. Mr. Bradley. Not to an employer, not to an individual state. So the Australian Qualifications Framework, the AQF, sits above all of this. And you have a qualification which you can take from employer to employer, from state to state, and you can also use it to contribute towards further education as well. So you can complete a certificate 3, for example. With a bit more study, that becomes a certificate 4. Mr. Courtney. Great. And, again, I think that seems like you wrestled with trying to strike the right balance, but at least maintaining a certifiable baseline. With that, I yield back. Chairwoman Davis. Thank you, Mr. Courtney. Now, Mr. Smucker, the Ranking Member, has decided to go at the end of his Members of questioning, so we will go to Mr. Grothman. Mr. Grothman. Okay. A couple questions. Of course, you are here today because I think we all agree that, in America, our education system after people graduate from high school is very inefficient and very screwed up. At what age in each of your countries is an average person expected to be working in the profession in which he or she will work for the rest of their life? I guess I will put it that way. What is the expectation? We will start with you, Mr. Bradley, and just work across. Mr. Bradley. Thank you for the question. I guess the answer to that is it depends on the occupation that we are talking about. I can tell you that, roughly, of the 140,000 apprentices that commenced an apprenticeship-- Mr. Grothman. And I am not just saying apprentice. I am looking for your country. Like in America, you could go to college to become a CPA. You could get an apprenticeship and become a pipefitter or an operating engineer. The problem in America is very few people begin to do those things at age 21 or 22. Too many of them farfle around for a while in life before they do what eventually will be their life's work. That is what I am looking for. In your respective countries, subjectively if you don't have the exact answer, when are people expected to be working full time at the profession of their life? Mr. Bradley. Again, sir, I guess you would have an apprenticeship, which would take about 4 years. So you are talking about 22 by the time you are starting a career. The same with a bachelor's degree. You are talking 21, 22, 23 maybe before you go in a profession like that. I don't know if the answer is occupation for life. That is probably where I am tripping up on the question. I think we are in a state of the world now where we are starting one occupation, a bit more training, a bit more education, and we might pivot along the way through. Thank you. Ms. Annen. I can say for Germany that it is about the same age. So if you start your apprenticeship at about 18, 19, you might also be ready at 21, 22. But the same thing occurs in Germany, like it must not mean that you do this occupation for the rest of your life. So that is one major characteristic or criteria for our occupations, that we want to qualify people very broadly so that they have flexibility within their sector and also to what other sectors, so that it is not like they have to stick in this one occupation that is very narrow. The qualification that we offer, that is a major characteristic. And there is also continuing education. You can transfer to higher education. So it doesn't necessarily mean--for example, I started my apprenticeship also as a bank clerk, and now I am sitting here. So it depends on what you are doing afterwards. Mr. Grothman. Yes. Dr. Marti. Mr. Marti. Thank you. Yes. In Switzerland, apprentices usually graduate at age 19 and 20, and then they can really start working in their occupation. Mr. Grothman. Is that the norm? Mr. Marti. I would say most of people who do an apprenticeship graduate at age 19 or 20, because typically, they start around 16. Some start at age 15. Some start at age 17. That is the range. And then the apprenticeships usually take 3 or 4 years, depending which occupation we are talking about. Mr. Grothman. Okay. Mr. Marti. So they can start working full time in their profession at age 19 or 20, some even at 18 maybe, some in their early twenties. And that is also, I think, a key feature of our system; they typically do not stay there for the rest of their life. They can go on into further education and-- Mr. Grothman. Okay. I want to ask each of you whether you have this problem in your country. In America, I think we have two huge problems connected with our traditional four-year universities. First of all, almost half do not graduate when they go down that path, which obviously is a problem. And secondly, we have a lot of people get a degree in a four-year university and they find out they cannot get a satisfactory job with that four-year university and they may start an apprenticeship at age 25 or 28. Could you comment whether you have those problems in your countries? Again, I will start with Mr. Bradley. Mr. Bradley. So, yes. So my recollection is that our completion rates for a three- or four-year bachelor's degree are slightly higher than the U.S., but I am talking 60 percent rather than 50 percent. But I can talk about graduate outcomes where I know 75, 85 percent of graduates have employment within 3 months of completing their degree. Ms. Annen. So for Germany, I can say that more than 50 percent are entering this dual system, and it is driven by a need of the company. So they have actual places where they want to hire the people after they finish the apprenticeship. And in our system, like 95 percent of the apprenticeships get a job afterwards. And we have a lower participation in higher education. Now that we have changed the degrees, that we also implemented a bachelor in math degree, that might change a little bit. So bachelor degrees are a little bit competitive to apprenticeships, but so far, apprenticeships offer a really good career perspective and almost secure employment afterwards. Chairwoman Davis. Thank you. Mr. Grothman, we are going to move to Ms. Jayapal. Ms. Jayapal. Thank you very much, Madam Chair. And thank you so much to all of you for coming here. I have the great honor of having former Ambassador to Switzerland, Suzy LeVine is in my district. And so I have actually heard a lot about, particularly Switzerland, but all over Europe the apprenticeship model. And I am grateful that you all are here. We have a lot to learn from you. Just going to the question of higher education, can you just quickly tell me, just picking up from where my colleague left off, whether the higher education in your countries is paid for by the government? Dr. Marti. Mr. Marti. Excuse me, I didn't understand the last part. Ms. Jayapal. Higher education, how much does higher education cost? Is the majority of the cost covered by the government or are students covering that? Mr. Marti. So university level education usually costs about $700 per semester in terms of tuition for a research university. Ms. Jayapal. I am sorry, let me just cough a little bit into the microphone. $700 per semester? Mr. Marti. Right, for research universities. And a university of applied science, I believe it might be a little bit higher, like $1,000 per semester. But overall, for a bachelor, it might be below $7,000. Ms. Jayapal. $7,000, okay. Dr. Annen. Ms. Annen. I can say almost the same numbers for Germany. So-- Ms. Jayapal. Okay. And Mr. Bradley? Mr. Bradley. It is a bit more complicated. So it is a co- contribution between the federal government and students. The students' fees are subsidized by the government, but all students in Australia have access to an income-contingent loan, which is not required to be repaid until students start earning above a certain threshold. Ms. Jayapal. So not required to be repaid even if they are taking a loan. So I think that is an important point, because when you look at completion rates, you also have to look at some of the factors that drive why students don't complete. Let me go to--women's participation in apprenticeship programs has been something I have been looking very closely at, and in the United States, it is devastatingly low. Only about 7 percent of apprentices nationwide are women. I think in Australia it is 25 percent are women. In Germany, about 37 percent are women. So, Dr. Annen, what strategies have been particularly successful in making apprenticeships more attractive or accessible to women? Ms. Annen. I wouldn't even say that we have a big problem with low participation of females in apprenticeships. It depends on the occupation, though there are typical male- dominated occupations, like manufacturing or construction, for example, and there are also occupations dominated by women, like education and care and typical occupations like this. But we have programs like called Girls' Day or Boys' Day, where we try to promote gender-neutral vocational choices. And also, companies have marketing concepts in place to attract more female apprentices, especially in IT or sectors like this where they have a low participation of females so far. Ms. Jayapal. In the United States, registered apprenticeships provide standardization of pay, and it actually limits the potential for wage discrimination based on gender. Can you explain how Germany's wage standardization system works and how that helps ensure equal pay for equal work? Ms. Annen. So I can speak for the apprentices, and I think there is equal pay for both genders. And so the payment for the apprentices is based on the collective wage agreement that is agreed upon by the social partners in each sector. And besides, there can also be recommendations by the chambers in place about what should be paid to the apprentices. And so employers can a little bit undercut or exceed this payment, but more or less it is in the same range, and it is about an average 850 euro a month what they get. Ms. Jayapal. Yes, that is very helpful. I mean, I just think that standardization of pay is very, very important, because it helps on that piece. The wage progression piece is also important, and it is important that individuals who complete apprenticeships also have the opportunity to pursue a higher education degree if they so choose. Dr. Marti, you talked about no dead ends in the Swiss apprenticeship system. Could you speak about why that is so important? Mr. Marti. I think it is also very important for the image, apprenticeship paths, because young people always know that they can do an apprenticeship and they know that afterwards they have a profession. They learned a profession. They can start working, but they would always have the opportunity to move on and go to university. So I think it clearly helps the image of the apprenticeship. Ms. Jayapal. Thank you. And what is the minimum wage in your countries, out of curiosity? Mr. Marti. The median? Ms. Jayapal. Minimum wage. Minimum wage, yeah. Mr. Marti. We don't have a legal minimum wage, to my knowledge. There are only recommendations. Ms. Jayapal. Because it is set by a board, correct? Mr. Marti. Sorry? Ms. Jayapal. It is set by a board, is that how it-- Mr. Marti. I know that there are recommendations, but I don't think they are legally binding, but I am not sure. Ms. Jayapal. And do you have a sense of what is the-- Mr. Marti. I can give you maybe a little bit of an idea. After an apprenticeship, the professions I know, when you graduate from apprenticeship, usually at the very young age 19 or 20, you earn, I would say, around $4,000 per month. Ms. Jayapal. $4,000 a month. Mr. Marti. Per month after an apprenticeship, I would say on average. Like in the apprenticeship field I was, I think it was a little bit higher, but that was 20 years ago. Ms. Jayapal. But that would be $48,000 a year. A $15 minimum wage would only be $30,000. This would be $48,000. Mr. Marti. It depends really which occupation we are talking about. It can go higher. Ms. Jayapal. Thank you so much. I yield back. Chairwoman Davis. Thank you. Ms. Stefanik. Ms. Stefanik. Thank you, Madam Chair. Dr. Annen, in your testimony, you mentioned that the graduation rate of apprenticeship programs is higher than that of students in traditional higher education. Low completion rates is something that--it is an issue that we are facing in this country that we are trying to improve upon. What do you think are the major reasons that we see a higher graduation rate in these apprenticeship programs? Ms. Annen. I think it depends on the individual, of course, but I think there is a high motivation. So you are very much involved in the everyday business in the company. And the company has a big interest that they complete the apprenticeship successfully. So I think that there are a lot of people around the apprentice who take care of them and there is a lot of monitoring. There is this intermediate examination when they see how well they are doing in the apprenticeship. And afterwards when they are not doing very well, there are some adjustment measures in place. So the companies try to take care of it, that the apprentice actually reaches the aim of the apprenticeship. And I think in higher education, it depends if you are in a university or a university of applied science, but there are less people who actually take care and who monitor the success of the student. So I think that is one element on what I would say makes it more successful, that the completion rate is higher. Ms. Stefanik. Thank you. Mr. Bradley, in your testimony you, mentioned that the length of time to complete an apprenticeship is determined through a competency-based progression. How does this approach, instead of mandating a specific one-size-fits-all length of time, how does that benefit students who are deciding to change pathways or begin a program after already gaining experience in the workforce? Mr. Bradley. So, again, it depends on the occupation, I guess, we are looking at. It is not a duration that kind of qualifies you to be a technician tradesperson, whatever, but it is how well-skilled are you. So the training packages that are developed, in consultation with industry, reflect that. And it is this is what we need, this is what is required, so this is roughly how long it takes. I would probably answer that question by going back to the qualifications framework, where the amount of study that you do will qualify you for a qualification up to a certain level. So maybe certificate 2, certificate 3. If you choose to leave early and you have done an amount of study, 6 months, a year, and that qualifies you for one of the lower qualifications even though you are stretching for a higher one, you will still be able to walk away with that, at least walk away with something. Ms. Stefanik. Thank you. I yield the balance of my time to the Ranking Member of the full committee, Dr. Foxx. Ms. Foxx. Thank you, Ms. Stefanik. I want to build a little bit on some comments that were just made. A persistent problem we have with the apprenticeship system in the United States is the disappointing stigma attached to models other than what we have known as, quote, traditional postsecondary education at a college or university. Despite the consistent evidence of success for participants, there still seems to be a hesitance on the part of some to enter into apprenticeship programs. I have spent years trying to combat the stigma and championing the idea that all education is career education. And to build on the comment about what has been done to change the attitude, what factors do you think have led to the success you have experienced in building a culture where apprenticeships are such an integral and accepted component of education? And if each of you would answer that briefly. We have 1 and a quarter minute. Mr. Bradley. Just real quick. So I guess there are two things that I will point to. And thank you for the question. Two things that I will point to. One is the Australian Apprenticeships Ambassadors Program, which has recruited prominent Australians, particularly from different sports fields, so from the National Rugby League, for example, or the Australian Football League, who have come up through the vocational or apprenticeship ranks themselves who now act out in the community and say, this is what I have done, this is how I learned, this is where I have got to, and what a wonderful idea that was. That is one. The other thing I will point to was a joint campaign between the industry body that represents our technical colleges and our research universities, the group of eight, who came out together. So you had the community colleges and the research universities who came out together and said that there needs to be a seamless pathway from vocational training to higher education and to research. These sectors are working together. Thank you. Ms. Annen. I think for Germany, I can say that the companies themselves that train the people, the apprenticeships, and so they trust what they do themselves. And they have developed training standards, so they also know that it is adjusted to what are their needs. What they don't know necessarily about higher education, so, of course, they need also graduates from higher education. But for the apprenticeship, there is just a high transparency. So they know what is in it. They know the standard. They developed it, and they know how it is trained, so they trust the result and the outcomes and that is why they want to hire the people. And that is why it is kind of successful. Chairwoman Davis. I am going to take the Chair's prerogative and let Dr. Marti finish your question. Ms. Foxx. Thank you, Madam Chair. Mr. Marti. I think the success actually speaks to a certain degree for itself. But also, what we did, we streamlined the permeability within our overall education system, and I think that contributed a lot to the image also of the apprenticeship system. But also, the fact that the apprenticeship model takes place in a dual way. Like practice and education in a school has a stimulating effect on many young people, because they know why they learned that. Ms. Foxx. Thank you, Madam Chair. Chairwoman Davis. Thank you, Dr. Foxx. Mr. Takano. Mr. Takano. Thank you, Chairwoman Davis, for this hearing. And thank you to our witnesses for providing your insight into this growing industry in your respective countries. These international models provide great examples of what successful and high-quality apprenticeship programs look like. While we have some successful registered apprenticeships in a few of our States here in America, we also have a lot to learn from you all on how to implement our apprenticeships on a larger scale. The Trump administration established a task force to study apprenticeships, and while it recommended that there are apprenticeship opportunities in every high school in America, there has not been a clear plan on how to make this happen. So here is a question I have for every one of you: What are the specific steps your countries have taken to lead such high participation in apprenticeships while students are still in school? Starting with Mr. Bradley. Mr. Bradley. So I think the answer to that question is to say there is a holistic view here. So, one, we have wanted to bring in flexibility, local industry, local knowledge into the design of different courses and different apprenticeships. So that flexibility and that kind of input from industry I think has been very, very important. At the same time, you need to have the quality assurance that sits on top. So we have a national regulator that sits across our vocational sector to ensure that certain competency standards are met and the student experience is a positive one. Our quality assurance bodies, we have one for the vocational sector and one for higher education. It is a bit more than just what is taught and what is specifically being offered as part of a degree or as part of a certificate or diploma course, but they also go into questions about sexual assault on campus, freedom of speech. What is the ultimate student experience like as you are undertaking this course? Mr. Takano. Great. Thanks. Dr. Annen. Ms. Annen. Yeah. I think in Germany, after you finish your full-time compulsory education, you have got the choice of 3 more years of compulsory part-time education. That can be vocational or general education. So it gives students, young people the choice. They can choose if they want to go more to what is a vocational track or more a general track, but they afterwards still have the opportunities to go into higher education, to go into an apprenticeship. And, yes, I think that is why the participation in the system is that high. And I think it is a lot about the reputation that Dual VET has in Germany. So after even if you complete your A level, it is an opportunity for people to build a good career on this. Mr. Takano. And, of course, so they are not having to choose between going to an apprenticeship and also being able to afford a regular higher education. It sounds like it is very affordable in Germany. Ms. Annen. I think both opportunities are very affordable. So I don't think that the financial aspect is a big criteria for young people. So in the apprenticeship, they get paid from the companies. In the higher education, as you have heard from both of us, it is not like they have to pay high tuition. But I think the reputation of vocational training is very high in Germany. So that it is not like you do this vocational training and, as has been asked before, you end up in the occupation for the rest of your life. It offers a broad variety of opportunities afterwards. Mr. Takano. Dr. Marti. Mr. Marti. I think it is similar. The apprenticeship pathways are just seen as very relevant. And as we have apprenticeships in 230 different fields, there is something for everyone in a way. Because in school you measure success with grades, and in an apprenticeship, yeah, you have a few subjects, but apprenticeships, it can be so many different things. You can be a music instrument builder. You can do an apprenticeship in banking, a lab technician, construction worker, chef, so many fields. So there is almost something, probably something for everyone, and I think that attracts people. That is why we have a quite consistent percentage of a bit more than two-thirds of an age cohort going into apprenticeship. Mr. Takano. Thank you. Mr. Bradley, in your testimony, you noted that Australia provides an incentive of about $4,000 to employers at the time of completion of the program, as well as special incentives. Is that an amount per apprentice or per year? Mr. Bradley. One is up to $4,000. I should make that clear. There are payments paid to the employer upon commencement and completion. Mr. Takano. But is that per student or is that just to be-- Mr. Bradley. That is per apprentice. Mr. Takano. Per apprentice? Mr. Bradley. Yes. Mr. Takano. So they get $4,000 per year per apprentice--or for completion? Mr. Bradley. My understanding is that the employer will receive a payment for taking on an apprentice and once they complete the apprenticeship as well. Mr. Takano. That is per apprentice. That is amazing. I yield back, Madam Chair. Chairwoman Davis. Thank you. Dr. Foxx. Ms. Foxx. Thank you, Madam Chair. And a minute ago, I just jumped into my question, and I want to say thank you all to being here today and sharing your expertise with us and helping us better understand the programs that you have operating. So thank you very much for coming. Dr. Marti, I appreciate your discussion of the public- private partnership in Switzerland's apprenticeship model--and I know some of my colleagues were able to visit there. I was not.--and the role of employers in designing and updating programs. I agree this is absolutely vital to ensuring students have the skills necessary to be competitive in the labor market. So tell us what you have done in Switzerland to integrate the apprenticeship system with the needs of employers and why this is important. Mr. Marti. The employers are really in the driver's seat when it comes to designing the curricula of the apprenticeship. Like whatever happens in the workstreams where apprentices learn in a company or with any employer, those needs are defined by the employers. The federal government, however, of course, reviews those curricula in order to make sure that they are consistent and consistent for a profession, but the definition of the needs is coming from the employers. Ms. Foxx. And I am assuming that some of this has to do with the labor market. Do you make adjustments in the slots that are available? I am sure employers must do that. Does the government have any role in playing, in deciding, look, we can look down the road and we know we are going to have X positions empty? Mr. Marti. The government does monitor it, but it is a free market. Currently, this market works in favor of the apprentices, because there are many more open positions than there are young people entering apprenticeships. The reason is just demographically. We had the opposite in the late nineties until about 2010, where we had too few apprenticeship positions. Then the government, like, was talking to the employers to incentivize them to offer more apprenticeship positions, but not with subsidies. So it is a little bit of an up and down. Now we see stronger age cohorts coming up. So in 10 years' time, I think the market might be a little bit different than now, but then again, we might also have new apprenticeship fields. It is really a market. Ms. Foxx. I think it is really important what you said before about there are 230 fields. I think in the United States, apprenticeships have been almost always thought about as being in the construction area, and that has been one of the things I have been talking about for a long time too is we need earn-while-you-learn programs. I don't care what you call them, apprenticeships or whatever, but earn-while-you-learn programs. I would like to ask you another question, Dr. Marti. Given how young Swiss students start their apprenticeships, could you talk more about how students determine what apprenticeship they want to pursue? Mr. Marti. Thank you. Yes. They usually start at age 14, 15, around that time, the second and last year of compulsory education that ends around 15, 16, depending when they are born in the year. So during the last 2 years, it is quite an intensive process. Usually, the homeroom teacher is reserving one lesson per week to overviews on what is possible. They would visit the career counseling center, which is kind of a regional infrastructure in Switzerland. Every region has one, where they can go for counseling like on an individual level. In the classroom, it is class wide. There is also an individual level. But employers, companies, they do also a lot. So they offer job shadowings. You can go there and try out whether that is something that you would be interested in. So there is quite a lot going on in that way, yeah. Ms. Foxx. I want to go back to something that was said earlier. And I am going to ask you all for a set of numbers about--we compare all the time what people earn by getting a baccalaureate and not getting a baccalaureate. And I would like to ask you all, not now, but I will submit questions to you about apprenticeships versus higher ed. But I want to ask you about, really quickly, this figure you gave about $7,000 total for a baccalaureate degree, that does not count housing, that does not count food, any of those auxiliary expenses, right? Ms. Annen. In Germany, basically what you pay for the institution is almost nothing. You pay for the services of the university and you pay for your housing and stuff, but there are also subsidies by the government. So you can get grants and you can also get money from the government, and that supports you. Ms. Foxx. Okay. Chairwoman Davis. We will finish that up at another - Ms. Foxx. Yes, ma'am, thank you. Chairwoman Davis. Thank you very much. Ms. Bonamici. Ms. Bonamici. Thank you, Chair Davis and Ranking Member Smucker. And thank you to our witnesses. I am glad we are having this hearing today to learn about successful policies that can help people access better paying jobs and meet the demands of our local employers. I often talk about having a path for everyone, and not everyone is on the same path and we have to have those opportunities. In my home State of Oregon, we are fortunate to have numerous examples of strong registered apprenticeship programs that include quality training, portable credentials, high wages, and a pathway to a permanent job. And one example, we have the Oregon Manufacturing Innovation Center, also known as OMIC. They are bringing together industry leaders in advanced manufacturing with local colleges to develop a registered apprenticeship program to complement the advanced manufacturing facilities, actually based off a model in Sheffield, England. And this is a collaboration that is going to provide growth, innovation, and efficiency in advanced manufacturing, plus a more skilled workforce. It is a tremendous opportunity for Oregonians and the type of partnership I think that we are looking for. And as we evaluate ways to expand registered apprenticeship programs in the United States to new sectors of the economy beyond manufacturing and building trades, we have an opportunity to learn a lot from what you are doing and your robust support for apprenticeship programs. Mr. Bradley, I wanted to ask you, do Australia's registered training organizations provide apprentices with the wraparound services, for example, childcare, transportation, mentoring, uniforms or work attire, tools? And how, if so, does the inclusion of these support services affect the success and retention of the apprentices? Mr. Bradley. Thank you for the question. So part of the program you will have access to what is called the Australian Apprenticeship Support Network, which provides that kind of more pastoral care, mentorship, industry-specific mentorship, along throughout the component of the apprenticeship. You will have access--in certain occupations, you will have access to an income-contingent loan, which will allow you to do those upfront purchases if you have to buy tools, uniforms, whatever it is, those kind of additional living costs to begin your apprenticeship as well up to around $21,000, which I think is rather sizable. Beyond that, you mentioned childcare, transportation. Childcare I want to say will be a private service. I don't think there is a specific program or facility to provide that. And then transportation, I think it will vary from state to state whether or not you are treated in the same way as a university student or a college student while you are doing your apprenticeship as well, whether or not you get a concession. Ms. Bonamici. Thank you. We found that oftentimes those can be barriers to people actually completing an apprenticeship. And then I wanted to ask each of you, how do your country systems engage with stakeholders, with the employers, with labor unions, with apprentices, with localities, in developing your programs? And have these partnerships allowed you to expand programs to new occupations or sectors? Dr. Annen? Ms. Annen. So I think the main characteristic of our system that it is consensus-based. So we have all the stakeholders together at the table once we start the idea of creating a new apprenticeship or a new occupation or if we are updating one. So they come together and they have to agree upon the standard that we want to set. So it is like this consensus principle is something that is very dominant in our system, I guess. Ms. Bonamici. Thank you. Dr. Marti, how do you engage stakeholders, and have you been able to expand to new occupations or sectors? Mr. Marti. It is a bottom-up process. So, usually, it is the employers who start talking to their professional organization they are a member of. And these professional organizations, they aggregate that, and then they talk to the government, to the federal government. And the federal government would formally decide to start a commission where all the partners, probably similar as what you said, would be involved. Also, the cantons, the employers, as well as the professional organizations and the federal government. Ms. Bonamici. And, Mr. Bradley, how do you engage stakeholders, and have you been able to expand to new occupations or sectors? Mr. Bradley. So I think industry input is an important part of the apprenticeship program as well. Not just in terms of identifying new programs, but importing into the training packages the competencies, what qualifies and so on. It is a rather flexible system I will say. There are over 500 occupational pathways through the apprenticeships and traineeships that are on offer. It is being expanded into new digital fields, advanced manufacturing, Industry 4.0, cybersecurity and so on as well. Ms. Bonamici. Terrific. Thank you. And I yield back. Chairwoman Davis. Thank you. Mr. Cline. Mr. Cline. Thank you, Madam Chair. And the Ranking Member, I want to thank you as well. I want to thank our witnesses for being here. I want to follow on the great questions of Ms. Bonamici talking about the great work that Oregon is doing. It sounds like some exciting things are happening out there. Virginia is also doing some great things with job training programs. I get to brag a little bit. CNBC just came out with their top States to do business, and Virginia was once again number one. So we are doing some great innovative things in Virginia, and part of that is because we have that flexibility. And I want to actually point out that the administration is following up on that by trying to remove some of the top-down administration of these apprenticeship programs. The Task Force on Apprenticeship Expansion recommended the creation of a new recognition for apprenticeship programs that choose not to register with the Department of Labor known as the Industry- Recognized Apprenticeship Program, IRAP. These apprenticeships will be overseen by third parties that may include trade and industry groups, companies, nonprofits, unions and joint labor- management organizations. They are complementing these federally registered apprenticeships, but they are not held back by the same bureaucratic restraints that prevent flexibility and program requirements that are crucial to meeting the varying needs of different industries. And I would argue that the industries that are present in Virginia are often different than the industries that are present in a State like Oregon. So you need that flexibility to be able to adjust and update. So I know that you all are managing these programs in your own countries on a smaller scale, but when it comes to the autonomy of your localities to adjust, do your localities have that autonomy? Are they able to adapt, or is it more of a top- down model where you have to go to the entity that is regulating on a national level to get that adjustment made? Let me start with Mr.--well, let me start with Dr. Annen. Ms. Annen. So I think the magic word in Germany is that our training standards are a minimum standard. So we agree upon something that is always contained in the certificate once you finish your apprenticeship. And besides this, we have got a lot of flexibility for the companies. They can actually add content to it. They can adjust the things to what their company-based needs. And also, we try to do our standards, which are company and technology neutral, so that it means that it is on a very abstract level how we try to establish those standards, that it leaves the flexibility that the companies need. Also, we are reforming our training regulations every 5 to 10 years, so within that time, of course, companies have the flexibility to adjust their training to what the actual needs. But what we have in our training regulation is the minimum standard that every company can rely on once you hire an apprentice in this occupation that at least they have what the content of this standard is. Mr. Cline. Thank you. Dr. Marti. Mr. Marti. Thank you. Yeah, it is similar. You can always do more than what is regulated, but for each occupation, it is valid federally, like nationwide. So the minimum standards are really nationwide valid. Mr. Cline. What percent of your education budget is funded nationally? Do you fund it--is it administered-- Mr. Marti. Like for the apprenticeship system, it is $9 billion in total. About 5.2 is from the employers, 60 percent, and about 3.6 is from the cantons, and-- Mr. Cline. But even your secondary school system, is that administered federally or is that locally? Mr. Marti. That is cantonal and locally. Mr. Cline. And locally, okay. Mr. Marti. Yes. Mr. Cline. All right. Mr. Bradley, what about the flexibility for your regions? Mr. Bradley. So I think that was a good way to phrase it as well is it provides a minimum standard, the system. I think what is important is that we have a nationally recognized qualification. It is market-orientated, quality assured, stackable, portable. We have just completed a rather significant review of our vocational education sector, the Joyce review, and that has been all about how do we strengthen quality assurance, speed up the qualification development, provide simple pathways to getting new apprenticeships up and running. And there is a task force that has been established to implement those changes. Mr. Cline. In 2016, you all committed to the new alternative delivery pilots for apprenticeships with the aim of increasing promotion growth of apprenticeships. What results have you seen from these pilots? Mr. Bradley. I can't comment on the specific program. At a macro level, the number of apprenticeships and those commencing have been relatively stable. So there has been a halt of the overarching decline over a couple of decades, but it has been relatively stable for the last, say, 5 years. But for a pilot program, I think it is going to be pilot specific, small. Mr. Cline. Thank you. I yield back. Chairwoman Davis. Thank you. Dr. Adams. Ms. Adams. Thank you, Madam Chair, and thank you, Ranking Member Smucker, as well. Thank you for convening this hearing. And to our witnesses, thank you for your testimony. I want to congratulate you all for the successful programs that you oversee in your respective countries, and I particularly want to recognize Dr. Marti. The Max Daetwyler Company, a Swiss entity, founded an apprenticeship program in my district in North Carolina named Apprenticeship 2000. Folks at Central Piedmont Community College rave about it, as the students complete associate degrees in mechatronics as well as journeyman certificate from North Carolina. And it allows them to immediately work in a technical field, including some at Daetwyler itself. So thank you, Dr. Marti, for your work as well as the work of the Swiss companies that have subsidiaries in the U.S. With that, I want to ask all three of you about how employers in your home countries are investing in your respective apprenticeship programs. I was happy to see that your models included the requirement of contracts between employers and apprentices, similar to our registered apprenticeship system in the U.S. Dr. Marti, why is this contract so important, and what assurances does the contract provide to both the employers and the apprentices in your system? Mr. Marti. Thank you. Yeah, the contract between the employer and the apprentice regulates the duration of the apprenticeship. Of course, the occupation, the salary that young apprentices get, which is a very modest salary. It is really small, but it is seen as education primarily. So because the apprentices are typically very young, this contract needs to be signed also by a parent. They sign it together, and on the other hand, of course, the employer. Ms. Adams. Great. Thank you. Dr. Annen, I also notice that there are requirements for wage progression as the apprentice's skills and competencies increase. So why is this wage progression so important for the system? Ms. Annen. I think over the training time--so we have done a couple of analyses in my institute, and I am happy to send you the concrete numbers afterwards, but the net cost that an apprenticeship costs the company is, on average, 11,000 euro, and that is subtracting the benefits that they get from the productive apprentice. And, of course, the apprentice gets more productive over the training period. And it also depends from occupation to occupation. It differs, because in some occupations, even the benefits exaggerate the cost that the companies invest in the apprenticeships. So it depends on the occupation. And, in general, the investment is very low in comparison to having a well-skilled and adjusted to what your company needs trained apprenticeship at the end of those 3 years. Ms. Adams. Okay. Dr. Marti, can you tell me how the funds within your apprenticeship systems are distributed and how much is spent at the federal level, the state level, and what are the investments in the education system? Mr. Marti. Of the overall $9 billion, about 5.2 are coming from the employers. And they are used to pay the salaries of the apprentices and also to pay the instructors, mainly. And the money that comes from the cantons, which is a little bit less than $3 billion, is used to pay the vocational schools, the teachers in the cantons, because each canton has vocational schools. So there is also an infrastructure of vocational schools across the country, and different employers like to start an apprenticeship if the school is already there. And the federal government is investing, and I think that is interesting. They invest also in pilots to further develop the program to try out new things, and also is commissioning research into the system, into specific aspects of the system, in order to gather information for an evidence-based reform, for instance. Ms. Adams. So what are the percentages in terms of expended, the state versus the federal? Mr. Marti. So, yeah, it is three-quarters of the public funding, three-quarters comes from the cantons, our states, and just a quarter from the federal government. Overall, it is 10 percent from the federal government when you include the whole budget, including what the employers contribute. Ms. Adams. Okay, great. Thank you very much. Madam Chair, I yield back. Chairwoman Davis. Thank you. Mr. Walker. Mr. Walker. Thank you, Madam Chair. Thank you all for being here today. I have enjoyed my time in Australia, Dr. Bradley, in Sydney, Alice Springs in Darwin. Of course, I did heed warning of the crocodiles there on the Darwin Beach and made sure I was staying far clear from that. I do have a couple questions there for Dr. Marti, if I could start. I will be introducing legislation to highlight the importance of expanding access to apprenticeships for high school students and other populations. As you know, the Switzerland apprenticeship program is available to students beginning I believe it is at age 16. Can you speak to the additional value added to students' long-term workforce development when they have access to apprenticeships at an earlier age? Mr. Marti. I am not sure whether I understood it correctly. At even an earlier age than 16? Mr. Walker. Yes. Mr. Marti. Yeah. I mean, in some cases, apprenticeships start at age 15. It depends when they were born in the year. Sometimes when they graduate from compulsory school after nine--like two kindergarten years and nine school years, they would start at age 15. And that just works. That is no problem. I am not aware of younger than 15. Mr. Walker. Thank you. In looking through your testimony, was I correct to see that 90 percent of the funding for, you said, apprenticeships comes from the private sector or from employers and about 10 percent contributed from the federal government? Are those numbers correct? Mr. Marti. It is 60 percent from the employers and 30 percent from the cantons and 10 percent from the federal government, overall. Mr. Walker. Can you give me a 20-second description of the cantons, make sure that for people that are listening or watching they understand what that is. Mr. Marti. Sorry? Mr. Walker. The cantons, c-a-n-t-o-n-s, can you explain what those are? Are those employers as well? Can you explain? Mr. Marti. The cantons? I am sorry, the cantons is basically the equivalent of a State here in the United States. Mr. Walker. Yes, right. Okay. I am making sure people were clear in that regard. Based on these funding proportions, would you say that the private industry investment in Switzerland's workforce development is equal to, if not more beneficial, than simply increasing the federal government's role in the apprenticeship program? Place the value of the importance. What is more important here? Mr. Marti. I think it is a win-win situation. I mean, employers really have a big interest in investing in apprenticeships, because that is their future workforce. But that is also very interesting to see. It is actually beneficial for them to start apprenticeship programs already during the apprenticeship. So they invest a little bit more than $5 billion U.S. dollars per year, all employers together in Switzerland, but they get about $5.6 billion, $5.7 billion out of it. Mr. Walker. They will get a good return is what you are saying. Mr. Marti. So it is almost more than the stock market. Mr. Walker. Thank you for that. I would like to yield my last two minutes to Representative Virginia Foxx. Ms. Foxx. Thank you, Mr. Walker. I appreciate that. You all have alluded and spoken directly, both, to the fact that employers are very engaged in what is going on. Dr. Annen, you said that companies deliver 70 percent of the education that is in the system. You also said a few minutes ago that there are minimum standards set by the federal government and then employers can change throughout the year-- is that correct, what you said?--to meet the needs of the changing economy, technology, those things. Ms. Annen. Exactly. So the biggest part of the training is provided by the company, so comparable to Switzerland, it is like either 3 days or something in company and 2 or 1 day at school. And, of course, employers have the flexibility; they can always add more training, more competencies. As I said before, it is a minimum standard to make sure that this is at least guaranteed once you get the certificate at the end. And this is what is also contained in the final examination, but it depends really on the brand or on the sector. We have got some occupations who have a very quick turnover, where we reform them every 3 or 4 years sometimes or 5 years. So it depends on the dynamics of the sector. And sometimes, as you said, also for Switzerland, they turn to the Ministry and they are like, okay, we need to adjust the training regulation and we can't work with this any longer. But in the meantime, they have the flexibility for sure to do more training or to do it according to the innovative standards in the sector. Ms. Foxx. A real quick question, Dr. Marti: You mentioned 230 fields where there are apprenticeships. Do you have an idea how many new fields have come in the last 20 years because of changes in technology? Mr. Marti. It is difficult in terms of changes in technology, but I think mainly in the IT field. I don't know an actual number. But what we also did, we integrated the healthcare, social care, and arts fields into the regular apprenticeship system in the early 2000s, but they already existed before. So this was more a streamlining of the overall system. But I would say it is mainly in the IT field, like mediumistic or an ICT technician. I think those were probably the fields that were most-- Ms. Foxx. I thought that might be the case. Thank you. Thank you. Chairwoman Davis. Mr. Harder. Mr. Harder. Thank you, Chairwoman Davis. I represent California's 10th Congressional District in the California Central Valley, and what I have noticed in our community is there are a lot of seeds of apprenticeship programs that are successful, but they haven't quite grown into the trees that you have in Switzerland or Germany. We have sort of the beginnings of a model. There are a couple that I have toured that I really admire. The National Agriculture Science Center in Modesto; VOLT, which basically helps train people in the construction industry and as apprentice mechanics and all the rest. One of the things that I think I would love to really dive into is how you got the buy-in both from the government entities as well as from the employers themselves to invest such a significant amount in the apprenticeship industry. Because I view, you know, our model as we know what works; we just haven't really scaled it up in a lot of our communities. Dr. Annen, I would love to start with you. Can you speak to the support of employers in particular? And how do you view the German model as successful in getting employer buy-in at such a large scale, $28 billion or more? Ms. Annen. I would say that in our country, the companies realize that it is in their own best interests. So they need the skilled workers and they need the ones that have exactly the skills that they need in the workplace. And with the training, vocational training, that is one of the best things how they can make sure that they have this workforce. And we need skilled workers especially. I mean, we have a demand in a variety of--we also need higher education qualified people, but I think we have got a big need especially for skilled workers in a lot of fields. And I think companies have realized that this is a good chance for them to actually provide these people for themselves and to train them exactly adjusted to what their needs. And so they have got a high motivation. It is in their own best interest, I think. And for the government as well. I mean, if I may quote Kennedy here, there is nothing more expensive than education, which is no education. So if you don't educate the people, afterwards you have way more cost when the people get unemployed. So that is why it is also in the interest of the government to invest in education to make sure that people get an employment afterwards. Mr. Harder. Thank you. And just to build off Chairwoman Foxx's question around new occupations. So my understanding is there are about 327 recognized occupations in Germany. What happens when there is a new occupation that is added? How do you build employer buy-in for that? Ms. Annen. So, first, we try to make sure--we often do research in advance and we ask. We do surveys and ask if there is really a need. And we also make sure that it is a long-term need, that it is not something that is just a short-term demand which can be maybe regulated in a different way than having a training occupation. And we also want to make sure that it is a broad qualification which is needed over time. So that is what we try to make sure. And then when we implement it, we also have everybody on board for it. And there is a lot of marketing from the chambers, from the umbrella organizations of the employers, from the trade unions. So they all try to promote this occupation. And we really check this very seriously before we try to establish a new training occupation to make sure that there is a need in the labor market. So once we do that, it is clear that there is a need. Mr. Harder. Thank you. I appreciate that. Dr. Marti, a question about the Swiss model. The other component here that I think is really important is the seamlessness of these models where you are actually able to start as an apprentice and go on and earn a Ph.D., like yourself. Can you speak to the importance of a nationally portable credential that apprentices earn at the completion of their degree? Can you share why you feel like that has been successful and how exactly that works? Mr. Marti. I think a portable degree is very important for the apprentices, of course, because so they can work nationwide, and also every employer in the country knows--an employer in Schierke knows when he or she sees a credential from Geneva what it is. And then for the seamlessness of moving into other pathways, it still, of course, depends a lot on the interest and aptitude of the young people. It is not that somehow you are obliged to move on, but still a large percentage of people do it because of their interest and aptitude, yes. Mr. Harder. Thank you. I appreciate that. I think the testimony that I have heard today has really confirmed the importance of apprentice programs, making sure that there is more routes to the middle class than just having a four-year degree here. And I think that the next steps are for us to make sure we can understand how to increase investments towards these apprenticeship programs, how we can create some of those seamless certification programs that have been successful in Switzerland and in Germany, and how to really make sure that we are bringing on our business and industry community to have some skin in the game as well. So thank you so much for all your time, and I yield back the remainder. Chairwoman Davis. Thank you very much. Mr. Timmons. Mr. Timmons. Thank you, Madam Chairwoman. Thank you to each of our witnesses today. I am going to give you my personal experience with apprenticeships. So I own two businesses, a CrossFit gym and a yoga studio, and both of them have an onboarding process to get new coaches. Instructors in the yoga studio, coaches in the gym are incredibly important, and it takes years to hone your skill, and you just don't start out that way. So in the gym, for example, we pay $15 an hour. We currently have three people in the apprentice--we don't call it that. It is a coach development program. And after a few months, they can then become coaches and we can hire them on full time. And so we have that and it has worked fantastic. We have developed a lot of great coaches. I personally have been through two apprenticeship programs, not in the formal sense, but I was in law school and I wanted to learn more about the courtroom. I wanted to see lawyers at work. So I went to a judge and I said, I would like to shadow you. I would like to be with you for as long as you let me. And so I did that for a few months and learned a great deal. That was unpaid. And then I wanted to be a prosecutor. So I went to the solicitor and I said--or district attorney, and I said, I really want to be a prosecutor. I appreciate that I have a lot I need to learn. And so I went and I ended up working there. I was paid very little. I worked there for 8 months before he hired me on full time. So it was great. I mean, I have had a lot of benefits to these programs where you learn skills, you develop them to be as competitive as possible in the labor market. So, interestingly, none of those had anything to do with the government. There was no Federal money. There was no State money. My business just does it because it is best practice. So I guess my question is, how do you in your countries find people for these programs? So I have never had any assistance. I just saw something I wanted to do and then I found a way to get the skills to do it. So when someone is in Switzerland, how do they pick? How do they find themselves in a program? Mr. Marti. A young apprentice, you mean? Mr. Timmons. Yes. Mr. Marti. It is really during the last 2 years of compulsory school that they start to look into possibilities. And on the other hand--and this is really why it is a market-- the employers, they want to have the people with the best aptitude for their field. So they also develop, for instance, tests. Often, the employers, they would ask you to try to pass a test, an exam in their field before they would consider hiring you. Mr. Timmons. So when you are in school, the counselor just says, you have paths now and what do you want to do? And you take a test and then you find the best fit? Mr. Marti. Usually, you do that already before you graduate, like in your last year--like, you sign the apprenticeship contract usually in your last year of compulsory school. And before you can sign that contract with the employer, the employer usually asks you to take a test that is typically, in many cases, developed by the company itself. I believe smaller companies, they share tests that are developed by other entities, but larger companies, they develop their own exams. Mr. Timmons. So is it government-run or is it business-run? Does the market dictate the outcome or does the government dictate the outcome? Mr. Marti. Those exams and also the decision to hire an apprentice, that is the decision of the employer. And, of course, we have public and private employers. And a Ministry in Switzerland typically also trains apprentices. A public hospital would train apprentices. A public university would also train apprentices. But primarily, it is private, private sector. Mr. Timmons. If you are a doctor, we have what is essentially an apprentice program. After you graduate medical school, you have to go and serve in a learning capacity first. So is that called an apprentice program as well or is it different for professional degrees? Mr. Marti. Like residency? Mr. Timmons. Yes. Mr. Marti. I mean, no, that is in the higher ed part of our education system. But you are right, in a way it is also dual in the sense that it is practical after theoretical studies, but it is clearly not an apprenticeship system to be a medical doctor. But a nurse, for instance, that is an apprenticeship. Mr. Timmons. The other two witnesses, similar, last 2 years of compulsory school you are driven into one of these programs or further education. Is that fair to say? Mr. Marti. You look exactly what fits you, and then you would start a healthcare worker apprenticeship after graduating from compulsory school. Exactly. Mr. Timmons. Thank you. I yield back. Chairwoman Davis. Thank you. Chairman Scott. Mr. Scott. Thank you. Thank you Madame Chair. I want to thank all of our witnesses. This is some very good information and will help us in our work designing apprenticeship programs. Let me ask you. The first question--I don't know this is aimed at--normally you would graduate from high school in America around age 18. Is that the case in your countries? Ms. Annen. I think in Germany compulsory full-time education is 9 to 10 years, so year around 15, and then it is another three years of compulsory part-time education and then you can do, if you are at a grammar school, for example, you can do you're a levels or if you are in a vocation school, it depends on which school you choose afterwards. But it is standard. Mr. Scott. Well, if you join--if you sign up for an apprenticeship, do you lose any of your otherwise available high school education? Ms. Annen. If you--can you repeat-- Mr. Scott. If you sign up for an apprenticeship, is that in lieu of completing your high school education or in addition to your high school education? Ms. Annen. So, if you sign up for an apprenticeship, you need to have fulfilled the 9 to 10 years of full-time education; and, afterwards, when you sign up for an apprenticeship, you go to vocational school 30 percent of the time and that is your compulsory part-time education. So, you are doing this while you do the apprenticeship. You are fulfilling your part-time compulsory education. You invest three years of training. Mr. Scott. So that you would--you would get a high school-- do you get a high school diploma and then your high school? Ms. Annen. So, after apprenticeship, you get three certificates. You get one from the chamber which is the official recognized certificate. You get one certificate from the company which tells people how you performed in the workplace. And you get one certificate the from the vocational school, how you did in the vocational subjects and the general subjects. So have you three certificates at the end of an apprenticeship which one is from the school that you went to. Mr. Scott. One of the concerns about vocational education is at some models it is in lieu of what you would normally get in high school, and there are a lot of people that believe that if you don't get the complete high school education that you will be very much at a disadvantage if you later try to switch jobs. You need the basic education and that the apprenticeship or vocational education ought to be in addition to that. Mr. Bradley, can you comment on that? Mr. Bradley. So, in Australia your compulsory education I think is for 10 years and then they follow 2 years which the vast majority undertake are technically optional. You can begin an apprenticeship while at school and still complete the final 2 years of your high schooling where you will end up with the equivalent of a high school diploma. Mr. Scott. But the apprenticeship does not diminish your otherwise compulsory education? Mr. Bradley. No, I would say it adds to it. Mr. Scott. You mentioned, Mr. Bradley, a concept that I think we call stackable. That is, when you get a credential, if you go a little further, you can add to that credential. Can you say a word about why that is important? Mr. Bradley. Sure. So, I think the two upsides, I suppose, to this, to stackable credentials, one, it is recognized as past learning. So, once you have completed a program and your competency level is to a certain extent, then the next qualification that you undertake you will receive credit for past learning and past activities. And, two, I would say that it gives you a path out as well. So, if you are committing to a three-year diploma or two-year diploma, if, after 6 months, a year, 18 months, you decide it is not for you or if you have another opportunity in front of you, it is not lost time. You are still walking away with some qualification, some credential that is recognized for your time. Mr. Scott. Are there some apprenticeships for jobs that traditionally require a four-year college degree? Mr. Bradley. Not to my knowledge. So, after an apprenticeship, you will receive the equivalent of at most a diploma which is the-- Mr. Scott. Some jobs in finance or something like that, you traditionally get a four-year college degree. Mr. Bradley. Not in the formal sense, not what I would call an apprenticeship. That would be, once you have done a four- year degree or the equivalent of sorts, certainly I think, you know, workplace learning is going to be a very significant part of where you go to next and from economic society to finance, of course, all those fields. Mr. Scott. Do either of the witnesses have apprenticeships for jobs that traditionally require a four-year degree? Mr. Marti. Not to my knowledge. Mr. Scott. Okay. Thank you. Chairwoman Davis. Thank you very much. Before we go to the next questioner, I want to go to Dr. Foxx who has an introduction to make. Ms. Foxx. Thank you very much, Madame Chairman. I have a program called Teacher in Congress where every year I bring two teachers up to shadow me for about 10 days, and the two teachers who are here from the 5th District are in the audience today. They are Jody Carpenter and Justin Colbert, and I just wanted to recognize them. They are both teachers in the public schools in the 5th District, and they are here to see how Congress works behind the scenes. So, thank you, Madame Chair, for allowing me to introduce them. Chairwoman Davis. Do they want to stand? Ms. Foxx. They are standing back there. Chairwoman Davis. Okay. They are there. Great. Thank you very much for being here. Okay. We are going to go next to Mr. Levin. Mr. Levin. Thank you very much, Madame Chair. Thanks for having this hearing. It is extremely important, the role apprenticeships can play in our workplaces, and I really want to talk about where-- why young people would be interested in this and I want to ask questions about that. Before, I would like to ask permission to enter into the record an article or really a program from PBS NewsHour about the need for more tradespeople after all the focus on four-year colleges. Okay. All right. [The information follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Mr. Levin. So, you know, Dr. Annen, I wanted to ask you about why young people would want to do this. There is a huge emphasis in this country about free college, everyone should go to college. The assumption is a four-year degree is the ticket to a decent life. And I don't think there is any economist that has a model of the economy that would require more than, generously speaking, 60, 65 percent of people to have a four-year degree. There are lots of other jobs that we need filled. But speaking from your experience, evidently one in two compulsory school graduates choose a vocational pathway, if I have that right, or something like that in Germany. What factors would you say make apprenticeships more appealing for students to choose a vocational pathway in Germany? Ms. Annen. Yeah, I think in Germany that the system itself has a very good reputation. So, it is very broadly known by the society and very well-accepted; and also we have counseling, like, in Switzerland, like, there are the chambers. There is our employment agencies. So, people actually know about this; and they don't know only about higher education as an option after they finish their general education so and also the income that they can make during the apprenticeship and also what they can earn afterwards if they do further training. So, I know a lot of people who actually were able to have a good career that pays just as much as if you would have a master degree, some comparable higher education qualifications. And we have also done some research about this. So, over a lifetime it might be that higher education pays off a little better but you make the money earlier in your career and it depends on the further and the continuing education and the willingness of yourself to do this lifelong learning. So, it brings you into employment very early; and it is very attractive. Mr. Levin. Do the minimum standards include wage standards in your minimum standards of your apprenticeships? Ms. Annen. We want to do this in our actual reform. So, actually at the moment the minimum wage is not valid for apprentices but now we are doing a reform and that is what we want to implement in the next year that minimum wage is also applied to apprentices. Mr. Levin. Thank you. Well, let me ask any of you who wish to respond. You have talked about that your Federal national regulations and laws that govern your apprenticeships are updated. How often are they updated, and what have recent updates to the legislation or regulations in your respective countries sought to achieve? So, here you are mentioning raising the wages. What other things have you been doing to update your, you know, your apprenticeship programs whether in Australia or Switzerland or Germany? Ms. Annen. If you are talking about the Vocational Training Act-- Mr. Levin. Yes. Ms. Annen.--in 2005. Mr. Levin. Sorry. Ms. Annen. It is like if we see problems with the examinations or if we see problems with certain target groups, application, education, we try to adjust this. Talking about the training regulations, it depends, as I said before, on the occupation, so how dynamic the sector is. So, we are regularly updating this. It is something between I would stay 5 and 10 years when we update them, depending on the occupation. Mr. Marti. Thank you. Yeah, it also depends what we are talking about like the broader reforms that take place probably every couple of decades. Like we had the last one in the early 2000s when we further streamlined the system and integrated professions that were previously not part of the apprenticeship model like in healthcare for instance. But for each of the those 230 occupations, we update them every 5 years at least, often also earlier because usually it is because of technological change. Mr. Levin. And that is at the Federal. You are at the national level. Mr. Marti. Yeah, it is always at the national level; but, of course, a company, an employer, they could decide to do more. Mr. Levin. Right. Well, I guess I am out of time. But I would just point out that, you know, what you describe as minimum standards are really quite high standards and it is impressive to me as somebody who needs to help, you know, make the laws of our country that you all, each of your countries maintains very high standards for apprentices to make sure that they get a great education and have a great standard of living afterwards and that is something we can aspire to here. Chairwoman Davis. Thank you, Mr. Levin. Mr. Trone. Mr. Trone. Thank you, Chairwoman Davis and Ranking Member Smucker, for holding this very important hearing. And thank you to the witnesses for being here. As a former employer with over 7,000 team members that worked for my company, my favorite area is Human Resources and that is unusual for an entrepreneur but being part of the Human Resources invested in people and what you folks are doing in entrepreneur--apprenticeships in Europe is just phenomenal. We were out yesterday at the Plumbers & Gasfitters Local 5 and they are doing very similar work that is excellent and it is Earn-While-You-Learn, as Ranking Member Foxx spoke about earlier, and the folks, of course, leave with zero debt. Very impressive. So, we need to clearly learn from the European model and all your countries. But what has been done at the Federal level to ensure equal access so everybody can participate regardless of gender, disability, age, or race? Whoever wants to go first. Ms. Annen. I will just start. So, I think for especially for disabled people or for people with migration background, we have got special programs in place to make them ready and to provide kind of trainability to them so that they have the language skills that they need and that they also have the general education background to access an apprenticeship. So, we tried to include those people. Mr. Trone. Dr. Marti. Mr. Marti. Thank you. So, over all currently, we have the problem overall that there are many more apprenticeship positions open than we have people who would fill them. So in a way I think that makes this problem a less difficult one, but at the same time I think we have the biggest challenge is probably with immigrants from countries that do not know apprenticeship models. So, they are not really aware of it to the extent people would be aware of it whose parents come from a country that knows apprenticeship. So, there I think it really play as big role during the last 2 years of compulsory education to convince them of the value for themselves, for them after graduating from compulsory school. Mr. Trone. Could you also speak to the various ways the Swiss VET system is fully embedded in Switzerland's overall education system and maybe share some successes and challenges you face in that system? Mr. Marti. Yeah, so it is fully embedded in the sense that you can move around in it like, for instance, you can do an apprenticeship. Then you can add what we call vocational baccalaureate that grants you free access without exam to University of Applied Science, but you can also do the opposite. You can go to academic high school where you typically would continue your pathway towards research university, but you realize that University of Applied Sciences would be much more interesting. In that case you first would need to get practical experience because otherwise it would be disadvantage compared to people with an apprenticeship background at that University of Applied Sciences. So it works both ways, and it happens both ways that people move around in that system. Mr. Trone. All right. The Trump administration established a task force to study apprenticeships; and they recommended we put apprenticeships opportunities in every high school in America, which I think is a damn good idea. So, what are the specific steps your countries have taken to lead such high school participation? Because nothing has happened here. What should we be doing to look at moving this forward? Mr. Bradley? Mr. Bradley. So, nationwide we--all high school students have an opportunity to participate in a schools-based apprenticeship in the final two years of schooling. So, that is students in the Years 11 and 12 are able to access that program. We have just completed a review of the sector mobility, to get back to your earlier question. We are looking to move the Australian VET system to what we are calling a more modern applied fast-paced alternative to classroom-based learning; and part of that is reforms. It is about providing clear secondary school pathways to apprenticeships, to vocational training, and also greater access for disadvantaged Australians as well. Mr. Trone. Quickly, Dr. Annen. Ms. Annen. I think in Germany it is based on we have a broad agreement between the federal states and the federal government to promote vocational education and training and it is a complementary system where schools feel responsible for the educational part and where they also invest to make sure that people are provided with the best possible education in both learning venues. Mr. Trone. Okay. Thank you very much. Chairwoman Davis. Thank you very much. Okay. I want to note for the subcommittee that Representative Fred Keller of Pennsylvania is permitted to participate in today's hearing, and I recognize him for five minutess. Mr. Keller. Thank you, Chair Davis. And thank you to the panel for being here today. Just a couple of questions and whoever would like to go first on the panel may. Wondering about perspective students and how they are recruited by apprenticeship programs for--are they--by the apprenticeship programs or the employers, do they recruit the students? Ms. Annen. In Germany, they are responsible for their recruitment themselves and, as I said, the chambers at the organizations of the business sector, they have information and counseling services for the young people in place and also our employment agency has but responsible--are also the companies are responsible to hire them and to do the contract with them. And earlier it was asked about the standards. So basically in our law--you don't need a general educational certificate to start an apprenticeship, although the business is the limiting factor. So, the companies decide whom they want to hire and whom they think has the trainability and whether they think they can complete a successful apprenticeship with those people. Mr. Keller. Thank you. So that would mean that the people that want to be apprentices would have to qualify with the businesses? Ms. Annen. They have to apply at the company and then the company will have an assessment with them and they decide which ones they want to hire and whom they want to offer a training contract. Mr. Keller. So it is not just basically open to anybody that wants to learn that skill or that job. Ms. Annen. It is not like--we have got a lot of--like in Switzerland we have got a lot of not-filled apprenticeships places and occupations where they are maybe not that popular and we have got some occupations where there are more people wanting to learn those job than we have apprenticeship places. Mr. Keller. So you have people that want to learn something, but nobody has picked them up in that apprenticeship program. Ms. Annen. That can happen. Mr. Keller. Anybody else on how yours work? Mr. Bradley. So, a small adjustment to that as well, I suppose. So, there is a model in which you can, the employer will be responsible for entering into a contract with an apprentice and take them on as an apprentice. Through our group training model, group training organizations act as an intermediary. So, it can be a community group or an industry-led group which will take on a cohort of apprentices and then place those apprentices with employers on a project-by-project specific needs, seasonal work as required. Mr. Keller. Okay. Dr. Marti, anything different? Mr. Marti. Thank you. No, I think it is similar as in Germany that they apply. The students, after compulsory education or in the last year of compulsory education, they apply with companies; and companies, however, they also advertise a lot because they want to have the best talents. Mr. Keller. Okay. So do you track the individuals as far as any kind of diversity or so forth that go through the apprenticeship programs, or is it just basically based on who is qualified and who they select to go through these? Mr. Marti. The Government does not interfere in that application process. That works between the students and the employers but it is true that some students, they have a--for instance, they would like to go to a profession where there are a very limited number of apprenticeship slots open. So, what they would do often is they would go to look for a bridge year maybe-- Mr. Keller. Okay. Mr. Marti--like a tenth school year, for instance, where they would work also specifically on some of their weaknesses in order to--they would see what could they improve to get to an apprenticeship that they would like to do. Sometimes they would reevaluate their options and apply for another apprenticeship. Mr. Keller. Okay. I thank the panel. And I yield back my time. Thank you. Chairwoman Davis. Thank you. Mr. Guthrie. Mr. Guthrie. Thank you very much. And I am so sorry. I had another hearing that was dealing the opioid crisis and fentanyl and other things that are happening to our young people that we needed to be there and I apologize for not being here for the discussion but this is important, positive things that we can look at, how we are going to train our young people. Chair Davis and I had been real interested in the Swiss model. We studied a lot of the Swiss model; and what apprenticeships here, a lot of it is kind of focused on more blue-collar, technical skills which we absolutely need and have absolutely fantastic careers in doing so. The problem that we have talked about going back and forth is just the kind of the perception here that is what apprenticeships are and that is kind of what they are here and the Swiss model is seeing people who are bankers, who are--it was apprenticeships were pathways to professional careers as well. Specifically I know of an instance in a Nestle lab where people, where they had teenagers, high school, what we would call high school in apprenticeships programs learning how to make protein, I guess, dehydrated, transportable so they could send that to Africa and they were going to be lab professionals, not in the technical skills which, again, before I go any further, those are absolutely honorable, great jobs and we need more of them in our country. But could you talk about just kind of the professional apprenticeship? You may have already and I apologize if you had but I am real interested in kind of the pathway where it seemed like after what we would call our freshman year of high school--I know it is not equivalent--but essentially people would continue on a pathway of more of an academic career and it seemed like two-thirds or maybe 60 percent of the Swiss citizens would go in the apprenticeship program and, like I said, lead to all kind of careers, not just construction trade and those types of things. Could you talk about that? Mr. Marti. Thank you very much. Yeah, I like to do that. So, yeah, it is 230 very different fields usually; and they are rather comprehensive, however. Like we don't have, for instance, an apprenticeship, a youth apprenticeship in accounting. This would be part of a commercial employee apprenticeship, for instance, in banking or insurance where you learn many other skills than just accounting, for instance, and, yeah, you see that in other fields as well and, yeah, maybe I can-- Mr. Guthrie. Well, just want to comment on how apprenticeships are equivalent or prestigious viewed as the Swiss society. I think one question was: How did you get over the hump can you be a professional and not have to have a four- year degree from a college university? And somebody made the comment that was kind of what Switzerland always does, kind of the guild system. It goes back several hundreds years. So, we don't have that same kind of-- Mr. Marti. I think it is prestigious also when you see that we have quite a consistent percentage of about 68, 67 percent participating in it. So, yeah, it is more the demographics currently that created the situation where we have many more apprenticeship positions open. Mr. Guthrie. I promised Mr. Smucker I would give him some time but so about a third of the U.S. has four-year degrees and you are saying 65 percent go to apprenticeships? Mr. Marti. Yeah, two-thirds go to apprenticeships. Mr. Guthrie. Two-thirds. So what we are trying to do is we have a system that--that we are not focusing on two-thirds going to apprenticeships but still only a third are getting college degrees. So, I will yield to Mr. Smucker. So, you-all seem to have a good handle on it is my point. Mr. Smucker. Thank you. This has been a fascinating discussion. It has been hard to say quiet here. I have had a lot of questions. So, I am going take this opportunity to thank you Mr. Guthrie. I want to follow up first the line of questioning that Mr. Levin asked earlier which I thought were some very good questions in regards to how we think here about a baccalaureate degree versus going directly to the workforce through some earn-to-learn program. That is changing. We have for decades told our students that, you know, the only pathway to the workforce is through a four-year degree. It was a disservice. It was a mistake. We are gradually changing that and certainly here we understand the value of apprenticeship programs and other earn-while-you-learn models and I think it is changing in the country as well. But I'd like to drill down a little. In the students that do not go to a four-year degree, students that go directly to the workforce, they are still a large percentage here in the United States that are doing that but not doing it through an apprenticeship program. So, there are a lot of different pathways. It may be they walk into an employer and the employer has their own internal training. It may be through a career in technical school where they go for two years and then enter into the workforce. I am curious in your countries you may have to answer this later; I am running out of time--but in your countries is there still a percentage of the workforce that does not go to a four- year degree but enters the job--the workforce through some other pathway other than an apprenticeship program? Are we going to have time for that-- Chairwoman Davis. Yeah, I think, Mr. Smucker, if we can go to Ms. Wild and then we will come back-- Mr. Smucker.--thank you. Chairwoman Davis.--to you and continue with that-- Mr. Smucker. Keep that in mind for later. Chairwoman Davis.--that would be great or I am going to get in trouble here. So, I want to turn to Ms. Wild and we had recognized her earlier that she is not on the subcommittee but we had given her permission to join us for five minutes. Thank you. Ms. Wild. Thank you, Madame Chair. And thank you to the panel for being here. This is a subject of great interest to me which is why I am here, even though I am not on this subcommittee. Dr. Annen, I am happy to say that in September I will be visiting Germany which is the country of my birth. I haven't been there for a very long time but one of the things that I am hoping to do while I am on that trip is to visit some of the manufacturers who have locations in my district in Pennsylvania, of which there are several, and to learn more about the apprentice programs that are utilized there, because I think they are so incredibly important. So, I am going to direct this question to you. But if either of the other two witnesses would like to chime in, I am happy to hear from any one of you. One of the greatest concerns we have in this country, I think, and probably in most countries is that we have a lot of industries that are dying and being taken or being replaced by newer technologies and newer developments in those kinds of industries. And I guess my question is this. How do you incorporate the need to employ--to educate people in those new, upcoming industries, number one, and bring them into the apprenticeship program if they are perhaps part of an industry that is on its way out or a part of a dying industry? That is number one, that is part of my question. And the other is, you know, I feel really strongly we can't just focus on younger people as the future of work and what do we--I am trying to understand more about what we do to help people who are middle aged but still very much a part of the workforce and who have to voluntarily or involuntarily transition to a new industry. So, I will stop and see what kind of response you might have for me on that. Ms. Annen. So, yeah, I think that the innovation, the technological change is something that will highly affect every labor market across the globe and we are also facing this in Germany and we are seeing that over time there are some occupations where we need to abolish them because they are no longer needed and we have to also train those people into other fields and make sure that they are provided the skills that they actually need which companies already do, which is not necessarily highly regulated. And we also have big opportunities regarding continuing education which is a very low bar in Germany. So, there is no training necessary needed. So, if you have done workplace learning, if you have acquired competences in an informal way, that is also something that provides you with the skills that you would need and for passing those examinations related to those certificates, you would not necessarily need to go into a training course. So, we try to keep it as flexible as possible also for older people who have learned doing their work, during their work in the company so that they can also get a certificate that actually contains those skills and we are trying to work as closely together as we can with the companies and we do a lot of research and this so we try to figure out as early as possible. We do projections in which fields we might have the biggest needs and also try to develop the training regulations as early as possible to keep track of this. Ms. Wild. So, if I understand what you are saying then, people would be trained while still in whatever their industry might be, that it perhaps is not going to be an industry of the future, to evolve into a worker who can service a newer, upcoming industry without downtime? Ms. Annen. Yeah, I think as an industry for me IT is a good example. You do not necessarily have people, older age, people who work in IT nowadays who have the formal qualifications in this field because it just didn't exist before. And now they are formalizing it over time and, the younger people, they have this formal training in the field. And we try to keep it up to date as good as possible. But there are dynamics in the companies and in the sectors that just evolve naturally and that we try to formalize afterwards sometimes. So, that is how we approach this. Ms. Wild. Thank you. That is very helpful. You probably know that we have a lot of discussion here in the space of climate change and renewable energies and that kind of thing, and then we have got people working in the fossil fuel industry who need to transition into new forms of employment without suffering a real interruption to their economic well-being. So, your information is very helpful. Thank you very much. Chairwoman Davis. Thank you. And now I turn to Mr. Smucker for your five minutes. Mr. Smucker. So, again, my question is the students who are not going to a four-year degree, who are in the workforce through some sort of career and technical training or through on-the-job training, how important in each of your countries is apprenticeship as a part of that and how many--how many students are involved in apprenticeship programs as opposed to other on-the-job learning programs? Mr. Bradley. I have some figures here. So, we roughly have about--we roughly have about 260,000 apprentices in the system at the moment compared to I think it is about just short of a million or just a million in higher ed. So, granted, higher ed, it will have a longer duration; but that is relatively the proportions. There are, of course, those that choose not to do either. They go straight into the workforce or have a gap year, have an extension as well. Mr. Smucker. So you are saying straight into the workforce rather than through an apprenticeship program? Mr. Bradley. Yes. Mr. Smucker. How many would have you of them? Mr. Bradley. I don't have those figures in front of me. I am sorry. Ms. Annen. I also can't tell you the exact number for Germany but I think it is a very big political discussion in Germany and we also try to put measures and approaches in place that recognize this informal learning that these people have acquired so that we have the option. For example, within the apprenticeship we have the option of a so-called external examination where you can apply once you have done--you have learned in the workplace one and a half time as long as the regular apprenticeship is and you can prove that you have this practical experience and then you can also challenge exam can and you get the certificate afterwards so that it is not necessarily that you directly enter through the formal route. Mr. Smucker. How about in Switzerland? Mr. Marti. In Switzerland, we actually measure it at age 25 and there we see that two-thirds have an apprenticeship degree and 25 percent have a general education degree like academic high school, baccalaureate, and so overall 91 percent, 91 percent have some--have an upper secondary degree. So, 9 percent don't have that of the age cohort. Mr. Smucker. Yeah. The reason I ask the question is all of your systems obviously place more value on apprenticeship programs as opposed to other--as opposed to what we do here. More people are involved, more industry is involved, and more students involved. And I guess if I am the student one of your systems, what is the value of an apprenticeship program, of being part of a registered apprenticeship program, as opposed to on-the-job learning to some other form? Why would I choose an apprenticeship program? Ms. Annen. I think, once you have the certificate, you are very mobile on the labor market and you actually have something that proves what skills you have acquired and also regarding collective wage agreements, once you have the certificate, you are able to receive a certain amount of money as a salary which you are not necessarily if you are considered as an untrained or whatever worker. So, that is an advantage. Mr. Smucker. Sure. Does anyone else want to address that? Mr. Marti. Yeah, thank you. Yeah, I think the degree to which you receive training and education during apprenticeship is so much more comprehensive than if you would just learn on the job because it is dual. You learn all the theoretical background of all the things that you do in an applied way, and those are the applied. Like the practical part is very structured. We also have intercompany courses that are a mix. So, in a way it is not just dual. In the way it is three places where you learn, it is the vocational school, it is the employer where you participate in actual work streams, and then it is intercompany courses where you learn practical methods in a more systematic way. And when you would learn on the job, you would miss out on all of that. Mr. Smucker. I think that is great. One of the barriers here--and I am curious how each of your countries handle it. If I am a new company who has not participated in apprenticeship programs before, it can be a rigorous process to get approved for an apprenticeship program within an individual company. It is a regular existing apprenticeship program but not for that specific company. How do each of your systems handle that? Ms. Annen. So, in Germany the chambers take care of this and they make sure that the whole facilities in the company allow to train the recommended standards that are written down in the training standards; and also they have a qualification for the trainers, the in-company trainers, to make sure that they are personally and professionally able to train those people. And so we have some quality assurance measures in place to make that sure and also chambers providing support companies and getting ready to do apprenticeships. Chairwoman Davis. Thank you very much, Mr. Smucker. Now I am going to go for my five minutes and we are going to try and summarize after that and maybe ask an additional question if we have one. I wanted to really turn to this whole issue of stakeholders and, because as I understand it, you have a oversight from stakeholders, from businesses, as well as the state. Can you help us understand a little bit more about how that is integrated and where, you know, whether they--I guess just how important that is. Because, as you have heard, we sometimes think if that you have standards, then you have regulations which could overwhelm businesses. And I know that, you know, we are looking now at the industry-recognized apprenticeship programs. We don't have the answers to that. I wouldn't ask you to even define that at this point because there is still a lot of details that haven't been really brought forward. But who controls all of this? You know, how do you make sure that the people who are providing some oversight in the different occupations, where do you find them; and how do they mesh with the state system? Ms. Annen. Well, I think-- Chairwoman Davis. Without explaining the bureaucracy and I guess the question is: Is it a great big bureaucracy? Because what we're grappling with is how do you do this in a simple enough way that people are invested in it, businesses are invested, they don't feel overwhelmed by it, whether it is going to make them crazy. How does all of that come together? Ms. Annen. I think in a short-term perspective maybe it would be easier for each company if they just see that there is a need and they just adjusted themselves in the short perspective. But over long-term they actually, they get the advantage that they have a broad skilled workforce in that branch once we have these regulated established standards and so it is in their own interest. Once they want to recruit other people, they know exactly what they can expect; and they have a broader opportunity to get young people who are skilled for their own companies. And also it is a lot about this vocational identity that we create with this apprenticeship. It is like the rules concept what we have in Germany, this occupation, I think, that is a very important component in our system and that is something like we can almost call it a brand. It is like, if we want to abolish an occupation, it is most of the time that trade unions and employer organizations, we can't give up on this brand. Chairwoman Davis. Maybe just to interrupt you at this point. So, what happens if one of the occupations, if somehow the program is not doing well, do these stakeholders close it down? What would they do if they felt that the apprentices were not being protected, that they were getting good value for their time? Can they do that? Mr. Bradley. I wouldn't say it is a question of oversight. I think the way industry plays a role is it is about, it is about providing inputs, advice more than oversight per se. We do monitor and evaluate through our research organization in TVR in terms of surveys of employers and apprentices, what was their experience like, are they meeting the needs of the industry and so on. So, we are closely monitoring that. We have what is called an Industry Skills Council which is set up for different sectors which then provide a formal mechanism to provide the input and advice to government to say this his working, this is not working, we need to change things. Are they able to shut it down per se? No. I think it is going to be more a question of apprentices voting with the fetal firms, voting with their feet, and walking away from the system. It is a competitive process. Chairwoman Davis. Can I ask you quickly just about--we know trades has obviously been involved here for a number of years. What role do unions play? How does that work? Ms. Annen. Within the process of establishing a training regulation, so I think in Germany it is very important that we have this agreement between the social partners so that both think that this actually a broad qualification that is--there is a long-term need and that is a big interest for the trade unions, that it is not these narrow qualifications which are just short-term, because they want to make sure that people are qualified for the future and that they have broad opportunities afterwards once they go through an apprenticeship like this. Chairwoman Davis. Yeah. Perhaps, Dr. Marti, you want to comment on that. If you could include in your question quickly, we obviously put a greater premium on colleges and universities. I mean, that is kind of what students around parents want. So, what about the prestige factor for parents? I am assuming that because you have the standards, then people know that they can count on that, that is going, the end result, if you will, is going to be positive in terms of job and the ability to raise a family, et cetera. Am I correct in that or is there something else that we are missing in terms of prestige factor for families? Mr. Marti. Yeah, it is a good question. The roles of parents is also important, of course; and we observe that plays, of course, the family background plays a big role in what pathway young people choose. So, we do see that, for instance, when both parents or one parent has an academic background, the probability that their children is taking the academic route, like, towards university is higher. That is true. Chairwoman Davis. Okay. Mr. Marti. And vice versa also. Chairwoman Davis. Yeah, thank you. Mr. Smucker, do you want to summarize or ask more questions? Go ahead. Mr. Smucker. I do have two questions. So, one, I mentioned earlier we have graded our schools by how many of their students went to university rather than through directly to a career through an apprenticeship program or otherwise. How do your schools think about this? And I will just say it in the context in the district that I represent there are some really great new partnerships developing between the schools, the secondary schools, and businesses where students are moving directly to the workforce maybe through an apprenticeship program and schools are beginning to really value that, as opposed to all students going directly to a four-year degree. So, I am just curious how your schools think about such things? Ms. Annen. So, I think that it is both equal opportunity. So, I didn't mention our qualification for it but it has also, like in Australia, it has eight levels and you can choose the vocational route and you can choose the general, higher educational route and you can just end up in the same positions in the labor market and you can also reach degrees which are on an equal level. So, it is, like, it is not equal. The contents are not equal but it is on an equal level and we look at it like it is equal opportunities and it also has the same career perspectives. And there is permeability between the systems; and people take those routes, vice versa. So there is permeability in the system. It is not like I would say one thing is better than the other. They are different, and they also have different advantages and disadvantages so. Mr. Smucker. Is that similar in Australia, Mr. Bradley? Mr. Bradley. I would say it is a work in progress. It is having the similar kind of issues around stigma that you are experiencing here. There is a strong dominance of university/ higher education over vocational pathways, so much so every year the high school certificate results are celebrated and these are the results of these schools, of these high schools. This is where their students are going. That is public. A big fanfare is made of that. Mr. Smucker. Sure. Dr. Marti, rather than answer that, since I am close to running out of time, the other barrier I have seen in those partnerships is that we have labor laws that prevent students under 18, 16- to 17-year-olds sometimes from participating in workforces where they are around machinery. It is something that I have heard back from employers in my area who would like to have students participating in what we call pre-apprenticeship programs at our high schools but are prevented from doing so because of some of those what I think are outdated laws. Do you run into that in Switzerland at all? You mentioned-- one of the takeaways I think that I heard today is that all of your countries get students involved in apprenticeship programs at an earlier age than we do here. So I am curious whether that is an issue? Mr. Marti. Yeah, I remember that there was an issue when we had more people entering apprenticeship already at age 15. I think we needed to change something there and adapt a little bit, but at age 16 I am not aware of problems. Mr. Smucker. Okay. Mr. Marti. Also, yeah, I think that is--that works. Mr. Smucker. Yeah, I think we need to--one of the things we need to do here is look at our rules and laws around that and perhaps make some changes to make that access to the workforce easier at a younger age but that is a discussion for another day. I only have a minute or so. So I do want to just finish by thanking each of you for taking the time to be here today to share your perspectives, share your best practices. I can tell you for myself this was very useful to hear your experiences and your perspectives. So, this was invaluable. I would like to thank the Chairwoman again for scheduling this hearing. We all want to see the skills gap shrink and see the needs of our local communities and employers met; and in order to do that, we must encourage flexibility in the system. We must encourage employer-led innovation. So, I was particularly encouraged to hear today about the potential that can be realized when not just your governments but all the stakeholders--students, employers, educators--are brought into this promise really of apprenticeships. Students and families should never feel stigmatized for taking a path that is best for them. They should be free to choose among different types of education on the pathway to a permanent job. Sharing and learning from the best practices of those around us, like yourselves today, is even more important in today's rapidly evolving economy. So, again, I particularly appreciate the opportunity to hold this discussion with you today. Thank you. Chairwoman Davis. Thank you very much, Mr. Smucker. And to all of you, again, I wonder if you could just take just your breadth of experience for a moment, maybe this is a cautionary tale or something different, but I am just wondering if you, having heard, you know, this discussion today and the number of the questions--and obviously we have a very different system here the on some levels and we are trying to figure out do we have to change at all or can we incorporate more apprenticeships, scale these apprenticeships across many, many different careers in our system or do we need to make some changes. But I wonder, you know, is there one or two pieces of advice that you have, in closing, whether it is advice about something that has worked especially well in your system in terms of whether it is innovation or the schools design or something for us to avoid doing? What is that cautionary tale that you might like to offer to us as we close? Dr. Annen would you want to-- Ms. Annen. My recommendation would just be to look at the government and at the business community as partners that work together for one goal which is providing, yeah, good apprenticeships and good qualified training to young people; and that is in both interests, in the government's interest and in the business and the company's interest. And I think in general this principle of consensus is really one thing that makes it very successful because we have people together onboard within the whole process, and that is what I would recommend. Chairwoman Davis. Uh-huh. Great. Mr. Bradley. Mr. Bradley. I guess we are all talking about skill shortages here and my response to that is that it has to be easy. You know, we are out there, begging for employers to come to the table; and we need to say to them here is an apprentice that will be of value to your firm and to the work that you are doing. So, it needs to be as streamlined as possible, as utilities as possible to bring them into the system and to show the value of what is being done and flexible. So I would say do have a look at our group training model in a bit more depth and how that provides access to small firms, to medium firms, as well as large firms on an as-needs basis. Thank you. Chairwoman Davis. Thank you. Dr. Marti. Mr. Marti. Thank you. Yeah, from the Swiss experience I would like to, yeah, focus on those three main features I mentioned earlier. I think the labor market orientation is very important to keep it relevant, to have relevant apprenticeships. And the partnership of the different stakeholders is important for a well-functioning system, that it works reliable and seamlessly. And finally also the permeability I think is very important for the perspective of everyone and for the dynamics because we don't know what kind of labor market we will have in 10 years or 20 years. Chairwoman Davis. Yes. Thank you. Thank you very much because we are also thinking about the future as well as the present. We need help and support in both. And, again, I want to thank you very much. I think you all have identified the major themes that we are questioning, you know, on how we can work in perhaps a new way to make this work for many more students who would not have the ability to probably, you know, go to a friend's business perhaps and just ask for a job. I mean, this is something on a scale that really has such benefit, I think, in the long run; and we want to do that. So, I know that we want to ensure that apprenticeship opportunities in the U.S. are not relegated to alternative pathways either and be a value, a competitive and a rigorous pathway for all students to reach their full potential. So, we thank you very much. Again, thank you for your travel; and we look forward to having further discussions. And we are adjourned. [Additional submissions by Mr. Bradley follow:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] [Whereupon, at 12:42 p.m., the subcommittee was adjourned.] [all]