A study by the Ifo Institute for Economic Research has found that companies that hire fewer apprentices also invest less in new technologies. The key factor, according to the study, is the productivity losses that would be incurred in retraining and upskilling existing employees. New apprentices, who still need to be trained in a specific profession, are seen as cost-neutral in this context.
When there is a shortage of apprentices, companies are less likely to invest in new technologies. On the other hand, young employees are often deployed in work processes that use relatively new technology.
“We have seen that companies need sufficient young personnel to introduce new technologies in particular” said Cäcilia Lipowski, an expert at the Ifo Centre for Education Economics. The newcomers not only bring new technological competencies but are also willing to acquire new knowledge. “Against the backdrop of demographic change and increasing digitalization, it will become increasingly important to secure the future workforce and at the same time promote the further education of existing workers” Lipowski said.