Co-Finanzierung berufsbezogener WB in OÖ The ILA-System in

Co-Finanzierung berufsbezogener WB in OÖ The ILA-System in Upper Austria ILAs in the assisted area for vocational training in Upper Austria Linz – Cultural Capital 2009 Fritz Bauer Chamber of Labour of Upper Austria CEDEFOP-SEMINAR ON INDIVIDUAL LEASRNING ACCOUNTS. Dr. Fritz Bauer, AKOÖ An incentive for financing continuing vocational education and training Thessaloniki, 31 January 2008

Co-Finanzierung berufsbezogener WB in OÖ Key data of Upper Austria GEOGRAFICAL DATA v 1. 4 million inhabitants >> 17 % of the Austrian population v 11, 981 sq. km >> 14. 3 % of national territory ECONOMY/ LABOUR MARKET / EMPLOYMENT v 68, 626 commercial companies, including some 1, 000 foreign companies…. v 576, 203 Employees -> employment rate 72 % v Lowest unemployment rate in Austria since 2000 >> constantly below 5 % >> actual unemployement rate (12/2007) 4, 7 % v 32, 6 € bn gross domestic product (2003) v Growth rates significantly above national level v Leading industrial region in Austria v Export 17 billion € per year >> 26 % of total Austrian exports QUALITY of LIFE v Outstanding quality of life, v high environmental standards Dr. Fritz Bauer, AKOÖ

Co-Finanzierung berufsbezogener WB in OÖ Assisted (regional) areas for vocational training in Upper Austria • Supporting Individual Learners • • UA Training Account (UA TRAc), AK-Trainingbonus (AK-TRBo), AKMemberdiscount for Training (AK-Me. Di) Supporting business • Supporting Individual Technologieförderprogramme, Learners • Wirtschaftsimpulsprogramm, brachenbezogene Weiterbildungsverbünde, • UA Training Account (UA TRAc –> oö Bildungskonto) Firmenausbildungsverbund, Stiftungen • Taxation supports • AK-Trainingbonus • • AK-Bildungsbonus) Absetzbetrag, Prämie, Bildungssparen • AK-Memberdiscount for Training (AK-Me. Di –> Trainings via Labor Market Service AK-Leistungskartenrabatt) • • (AK-TRBo –> TEP – Territorialer Beschäftigungspakt Information & Advise on learning & supporting opportunities • • • AK-Database for Learners Support http: //www. arbeiterkammer. com/www-1174. html# Special projects & Research & Development on vocational training Dr. Fritz Bauer, AKOÖ

Co-Finanzierung berufsbezogener WB in OÖ Development of the UA TRAc 1992 negotiations between the Chamber of Labor an the Regional Goverment of UA >> Programm started 1994 Goal > to give individual learners financial support by 50 % of their personal costs of vocational training up to a defined maximum ammount in a 4 years period Primary targetgroup skilled (and unskilled) workforce („Fachkräfte“ - upper secondary & tertiary educated excluded ) Lively development of the scheme Quality assurance by introducing a mandatory „UA Quality Seal“ for training institutions Since 1999 supporting special targetgroups (eg. Women returners to work, 40+. . ) and innovative projects 2004 extended for Workforce with Upper Secondary Education 2005 extension of support rate for 40+ and unskilled to 80 % Dr. Fritz Bauer, AKOÖ

Co-Finanzierung berufsbezogener WB in OÖ Actual Scheme of the Upper Austrian Training Account (UA TRAc = oö Bildungskonto) – Status 2008 (+ 2009) Tools Rate of Payment Max. Accountbalance General TRAc 50% 830, -- € 80% 1. 250, -- € 50% 80% 1. 660, -- € 2. 090, -- € 75% 1. 250, -- € < 2. 910. -> * for 40+ & Unskilled Special TRAc for 40+ & Unskilled Exceptional TRAc (for a Periode of 5 Years) (880. -)+ Yeaarly defined special scheme * Yy % Vocational training or training to start higher vocational qualification (1. 770. -)+ (2. 210. -)+ Certificate oriented vocational training (z. B. BRP) (3. 100. -)+ Special Projects e. g. for women returners to work; for special targetgroups Innovativ TRAc Charakteristik Xxxx € Yearly pot of approx. 730. 000, -- € Innovative programms for spec. groups of learners (2007: cultural workers) Value of a joint account for women returners to work under 40; Dr. Fritz Bauer, AKOÖ

Co-Finanzierung berufsbezogener WB in OÖ Key Data for the UA-TRAc Ø Ø Ø Ø Ø Joint use of all 4 different tools ist possible ! Training is (pre-)paid by the trainee Reimbursement after succefully finishing Goverment files personal accounts for the learners Average payment to trainee 2007 >> € 468. 2007 >> 23. 000 Applications = + 12 % Budget 2007 >>> € 9, 05 Mio. = + 7 % Accounts will rise 2007 -09 >> + 21% Payment to trainees 1994 -2007 >> € 64, 7 Mio Induced turnover in vocational training by UA TRAc since 1994 approx. 170 Mio € Dr. Fritz Bauer, AKOÖ

Co-Finanzierung berufsbezogener WB in OÖ Budget for UA TRAc in 1000 € Dr. Fritz Bauer, AKOÖ

Co-Finanzierung berufsbezogener WB in OÖ The Chamber of Labors Support of Vocational Training AK-Training-Bonus (AK-TRBo - AK-Bildungsbonus) • • For members only 100 € / Year - max. 40% For AK-Plus-Program only: Selected Courses in IKT, PD, Language, vocational basics At selected educational institutions (BFI, VHS, Wifi) Special activities for targetgroups like migrantworkers. . Budget 2007>> 750. 000 € User 2007 >> 11. 000 Members AK-Memberdiscount for Training (AK-Me. Di –AKLeistungskartenrabatt) • • • For members only 10 % of discount but a limit of 75. - € for one course Unlimited nummer of vocational and nonvocational courses/y At the ak-owned educational institutions BFI, VHS-OÖ, VHS Linz Budget 2007 > 560. 000. - € Users 2007 > 35. 000 Members Combined Effects of UA TRAc, AK-TRBo and AK-Me. Di Dr. Fritz Bauer, AKOÖ

Co-Finanzierung berufsbezogener WB in OÖ Example for combined effects of UA TRAc, AK-TRBo and AK-Me. Di Assumption 1: Female worker, below 40, skilled Price (course out of AK-Plus-Program) - 10% AK-Me. Di = „AK-Price“ - AK-TRBo - 50% UA TRAc from AK-Preis #) Personal price after support € 299, 00 - € 29, 90 € 269, 10 - € 100, 00 - € 134, 50 € 34, 55 Alternative Assumption 2: unskilled OR 40+ - 80 % UA TRAc from AK-Preis *) Personal price after support € 169, 10 *) € 0, 00 #) 793, 50 left on the personal General UA TRAc for following trainings; *) Maximum Support up to Zero !! 1. 081 left on the personal General UA TRAc for following trainings; Special TRAc in both cases still available for eligible trainings. Dr. Fritz Bauer, AKOÖ

Co-Finanzierung berufsbezogener WB in OÖ Benchmarks for State-ILAs in Austria Dr. Fritz Bauer, AKOÖ

Co-Finanzierung berufsbezogener WB in OÖ Some Effects of co-financing vocational training in UA § 155. 000 Employees/Y are in UA active in voc. training courses § § 1/7 of them uses the UA TRAc ½ of them (10. 000) uses additional the AK-TRBo § § § That creates increased support of selected training content and targetgroups through combined effects Additional 25 -30. 000 are mere users of the AK-Me. Di All in all >> approx. 1/3 of the active employees use some kind of individual financial support from the state UA or the chamber of labor for their vocational trainings This is employee decided training and additional to business based training and training offered by the labor market service Statements in recent Research Works *) § Involvement in training in UA is 5 % higher than in the rest of Austria (training-rate) *) Austrian Institute of Economic Research, Labor Market Policy in UA, September 2006, S 121 f Dr. Fritz Bauer, AKOÖ

Co-Finanzierung berufsbezogener WB in OÖ Compared Training Rates UA - AUSTRIA Österreich Oberösterreich 25 % 31 % (voc 18+ priv 7) (voc 22 + priv 9) 25 % 30 % 25 -44 Jahre 45 -64 Jahre 27 % 20 % 32 % 25 % Frauen Männer 25 % 24 % 30 % 29 % General Training Rates Wohnbev. 25 -64 Jährige Vocational Training Rates Work Force - MZ 05 ALL TR Rates AK-Members 03 TR Rates Employees MZ 03 TR-Rates Young AK-Members 04 TR-Rates Young Work Force 03 Differenz voc + 4 % priv K. + 2 % +5% +5% 39 % 40 % 42 % 30 % Quelle: WIFO (Fritz, Huber, Huemer), Arbeitsmarktpolitik in Oberösterreich, September 2006, S 104 ff; mit bezug auf Mikrozensus 2005; bzw. IBE 2005 – WB-Beteiligung im letzten Jahr, vgl. Mikrozensus 2003 Dr. Fritz Bauer, AKOÖ

Co-Finanzierung berufsbezogener WB in OÖ Training Rates of Young Employees (31 -35) by Income (Y) and Time of Last Training (1) last Year -> x = 42 % (3) last 10 Years - > x =79 % (2) last 3 Years -> x =63 % (4) Never –> x = 17 % Dr. Fritz Bauer, AKOÖ

Dr. Fritz Bauer, AKOÖ Co-Finanzierung berufsbezogener WB in OÖ

Co-Finanzierung berufsbezogener WB in OÖ tax deduction for training expenses Dr. Fritz Bauer, AKOÖ 0% 38, 3 % 43, 6 % 50 %

Co-Finanzierung berufsbezogener WB in OÖ Some empirical effects of co-financing training expenses of employees in UA Evaluation of UA TRAc > 1/200 – 8/2003 • • • typical social-structure of users Restricted access in some districts Top content: IT, technic, language, BRP Evaluation of AK-TRBo – certain dimensions in real time • Significant older and more female workers • Differences in regional access Different surveys & national or regional data-mining • • • Participation rate in UA 5 % higher Signifcant longer trainings in UA No sign. difference in 4 -week-indicator (EU) Women participate less in bussiness based trainings. . . Dr. Fritz Bauer, AKOÖ

Co-Finanzierung berufsbezogener WB in OÖ Some empirical effects. . - 2 Joint Evaluation of AK-TRBo & AK-Me. Di > 2005 & 2006 Still in progress >> n: 553. 451 !! First results > • 6, 9 % of members received payments; 11, 5 % participated in training Strong evidence for >> more female workers (10, 6 %) -. 143***, more younger than older w (25 -34 -years old: 8, 2 %; -021***, more white c. w. (8, 3 %), small enterprises (7, 2 %), some districts less migrant worker (3, 3 %), male workers (3, 8 %), blue c. w. (4, 9 %), 50 -54 years old (5, 5 %), some districts. . . Dr. Fritz Bauer, AKOÖ

Co-Finanzierung berufsbezogener WB in OÖ User of ILAs by Gender ua. TRA & AK-Tr. Bo & AK-Members im Vergleich Dr. Fritz Bauer, AKOÖ

Co-Finanzierung berufsbezogener WB in OÖ Distribution of Age-Groups 2003 Dr. Fritz Bauer, AKOÖ

Co-Finanzierung berufsbezogener WB in OÖ Some Conclusions and Questions ? ? v Bring it all together to one picture – see how the training & life long learning system could work more effective by ILAs v There is a need for compensation in life long learning and training – what can ILA cover ? v Why do ILAs/co-financing work better with females ? v Knowledge-based sensible steering of co-financing programs is important – but who holds the steering wheel ? v How much training-unites can the disposable income of an employee buy ? § With or without ILA ? What is the ROI and for whom ? Dr. Fritz Bauer, AKOÖ

Co-Finanzierung berufsbezogener WB in OÖ See You in Linz 2009 Thank You Cultural Capital 2009 Dr. Fritz Bauer, AKOÖ