Traineeships: a barrier or stepping stone to employment?

In April 2007, the Higher Education Information System published a study which refutes the assumption that a whole generation of graduates cannot find proper employment, forcing them to work as trainees for a long period of time. The Confederation of German Trade Unions claims that young professionals need protection from precarious employment relationships, while the Confederation of German Employers’ Associations claims that the majority of graduates work as regular employees.

In 2005, the German weekly newspaper Die Zeit published an article entitled ‘Generation traineeship’ (in German), which called for an investigation into the scope, background and usefulness of traineeships that are performed by university graduates. Furthermore, it looked at the motivations of young professionals who apply for traineeships. Among other things, the article concluded that, while in the past traineeships offered people the opportunity to gain professional experience, trainees nowadays seem only to serve as a cheap and well-trained labour force.

Following the publication of the article, a heated public debate arose on the topic of young professionals allegedly working in precarious employment relationships. In April 2007, the Higher Education Information System (Hochschul-Informations-System GmbH, HIS) published its recent research results on the topic, questioning whether or not it is a myth or real phenomenon (Generation Praktikum – Mythos oder Massenphänomen (145Kb PDF)).

Research findings

The representative study is based on 11,786 questionnaires that were completed by graduates who were awarded their academic degrees in 2005. The analysis concentrates on trainees who had already graduated either from a university or from a university of applied sciences (UAS).

It shows that every eighth UAS graduate and every seventh university graduate participated in a traineeship. The number of traineeships is closely linked to the trainees’ field of study. Graduates formerly enrolled on language, cultural studies or psychology degrees were more likely to become a trainee than their counterparts from technical or natural science departments.

Of those graduates who worked as trainees, only every tenth UAS graduate and every fifth university graduate performed two or more traineeships. Most graduates only engage in a traineeship once. Almost half of the traineeships lasted for a period of three months only. However, remuneration varies greatly. The respondents indicated that they were quite dissatisfied with the pay that they received. In fact, 17% of UAS graduates and 34% of university graduates received no wages at all.

There are two main reasons that motivate graduates to apply for traineeship positions:

1. graduates seek professional experience;

2. graduates hope to gain a permanent job through the traineeship.

The research findings clearly indicate that the unemployment rate after the traineeship has been completed is high at first. However, half a year later, only 11% of the UAS graduates and 8% of the university graduates remained unemployed. In retrospect, most graduates consider their traineeship to have been useful for their future careers; this is the belief among 65% of university graduates and 66% of UAS graduates. Moreover, only 19% of university graduates and 21% of UAS graduates felt exploited during their time as trainees.

The study concludes that there is no empirical basis for the argument of a whole generation of recent graduates being underpaid as trainees instead of being employed as part of the regular workforce of an establishment. Although exploitative traineeships might exist, they cannot be considered to be the norm.

Views of social partners

In a press statement (in German) on 12 April 2007, the Vice-Chair of the Confederation of German Trade Unions (Deutscher Gewerkschaftsbund, DGB), Ingrid Sehrbrock, announced that the new research results did not entirely reflect the employment situation of young professionals. Ms Sehrbrock emphasised that future studies would have to broaden their survey periods. To provide a valid picture of the situation of young professionals, a study period of at least three years after graduation would have to be considered.

Furthermore, the DGB called for the legislative implementation of strict regulations that stipulate the content, payment and duration of traineeships. The confederation also believes that internships should last up to a maximum of three months and trainees should be paid at least €300 a month.

On the same day, the Chair of the Confederation of German Employers’ Associations (Bundesvereinigung der Deutschen Arbeitgeberverbände, BDA), Dieter Hundt, highlighted that the HIS study proved that a ‘generation of trainees’ does not exist (in German). Mr Hundt added that erroneous reports of alleged malpractice should no longer fuel anxieties among young graduates of their future professional careers.

The BDA maintains that traineeships serve both young people and organisations. The former get a chance to gain an insight into possible career options, while the latter are able to use traineeships as a useful tool either to strengthen links with universities or to look for suitable future employees.

Sandra Vogel, Cologne Institute for Economic Research (IW Köln)