The ILA-System in Upper Austria ILAs in the assisted area for vocational training in Upper Austria

Dr. Fritz Bauer, AKOÖ

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The ILA-System in Upper Austria ILAs in the assisted area for vocational training in Upper Austria

Fritz BauerChamber of Labour of Upper Austria

CEDEFOP-SEMINAR ON INDIVIDUAL LEASRNING ACCOUNTS. An incentive for financing continuing vocational education and trainingThessaloniki, 31 January 2008

Linz – Cultural Capital 2009


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ÖKey data of Upper Austria

GEOGRAFICAL DATA 1.4 million inhabitants >> 17 % of the Austrian population 11,981 sq.km >> 14.3 % of national territoryECONOMY/ LABOUR MARKET / EMPLOYMENT 68,626 commercial companies, including some 1,000

foreign companies…. 576,203 Employees -> employment rate 72 % Lowest unemployment rate in Austria since 2000 >>

constantly below 5 % >> actual unemployement rate (12/2007) 4,7 %

32,6 € bn gross domestic product (2003) Growth rates significantly above national level Leading industrial region in Austria Export 17 billion € per year >> 26 % of total Austrian

exportsQUALITY of LIFE Outstanding quality of life, high environmental standards


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ÖAssisted (regional) areas for vocational

training in Upper Austria

• Supporting Individual Learners

• UA Training Account (UA TRAc), AK-Trainingbonus (AK-TRBo), AK-Memberdiscount for Training (AK-MeDi)

• Supporting business

• Wirtschaftsimpulsprogramm, Technologieförderprogramme, brachenbezogene Weiterbildungsverbünde, Firmenausbildungsverbund, Stiftungen

• Taxation supports

• Absetzbetrag, Prämie, Bildungssparen

• Trainings via Labor Market Service

• 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

•Supporting Individual Learners •UA Training Account (UA TRAc –> oö Bildungskonto)

•AK-Trainingbonus (AK-TRBo –> AK-Bildungsbonus)

•AK-Memberdiscount for Training (AK-MeDi –>

AK-Leistungskartenrabatt)


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ÖDevelopment 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 %


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ÖActual Scheme of the Upper Austrian

Training Account (UA TRAc = oö Bildungskonto) – Status 2008 (+

2009)

Tools Rate of Payment

Max. Accountbalance (for a Periode of 5 Years)

Charakteristik

General TRAc

for 40+ & Unskilled

50%

80%

830,-- € (880.-)+

1.250,-- €

Vocational training or training to start higher vocational qualification

Special TRAcfor 40+ & Unskilled

50%

80%

1.660,-- € (1.770.-)+2.090,-- € (2.210.-)+

Certificate oriented vocational training (z.B. BRP)

Exceptional TRAc

for special targetgroups

75% 1.250,-- € < 2.910.-> * (3.100.-)+

Special Projects e.g. for women returners to work;

Innovativ TRAc

Yeaarly defined special scheme

Yy % Xxxx €Yearly pot of approx.730.000,-- €

Innovative pro-gramms for spec. groups of learners (2007: cultural workers)

* Value of a joint account for women returners to work under 40;


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ÖKey Data for the UA-TRAc

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 €


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ÖBudget for UA TRAc

in 1000 €

0

2.000

4.000

6.000

8.000

10.000

12.000


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ÖThe 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 migrant-workers..

• Budget 2007>> 750.000 €

• User 2007 >> 11.000 Members

AK-Memberdiscount for Training (AK-MeDi –AK-Leistungskartenrabatt)

• For members only• 10 % of discount but a

limit of 75.- € for one course

• Unlimited nummer of vocational and non-vocational 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-MeDi


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ÖExample for combined effects

of UA TRAc, AK-TRBo and AK-MeDi

Assumption 1: Female worker, below 40, skilled

Price (course out of AK-Plus-Program) € 299,00- 10% AK-MeDi - € 29,90= „AK-Price“ € 269,10- AK-TRBo - € 100,00- 50% UA TRAc from AK-Preis #) - € 134,50 Personal price after support € 34,55

Alternative Assumption 2: unskilled OR 40+

- 80 % UA TRAc from AK-Preis *) € 169,10 *)Personal price after support € 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.


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ÖBenchmarks for State-ILAs in

Austria 2006 Budget in 1000 € Nr. Users Employees User-Rate Budget/Empl. Average Payment

Upper Austria 8.860 20.173 553.251 3,6% 16,0 € 439 €Lower Austria 2.000 5.030 492.259 1,0% 4,1 € 398 €

Vienna 3.330 6.819 780.754 0,9% 4,3 € 488 €Styria 1.330 451.860 2,9 €

Burgenland 670 1.001 66.460 1,5% 10,1 € 669 €Carinthia 1.320 1.966 193.169 1,0% 6,8 € 671 €Salzburg 900 218.209 4,1 €

Tyrol 278.151 Vorarlberg 750 460 131.822 0,3% 5,7 € 1.630 €

AUSTRIA 19.160 35.449 3.165.935 1,1% 6,1 € 540 €


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ÖSome 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-MeDi 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 121f


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ÖCompared Training Rates UA - AUSTRIA

Österreich

Ober-österreich

Differenz

General Training Rates Wohnbev. 25-64 Jährige

25 % (voc 18+

priv 7)

31 % (voc 22 + priv 9)

voc + 4 % priv K. + 2 %

Vocational Training Rates Work Force - MZ 05 ALL

25 % 30 % + 5 %

25-44 Jahre45-64 Jahre

27 % 20 %

32 % 25 %

+ 5 %

FrauenMänner

25 % 24 %

30 %29 %

+ 5 %

TR Rates AK-Members 03TR Rates Employees MZ 03

TR-Rates Young AK-Members 04

TR-Rates Young Work Force 03

40 %

30 %

39 %

42 %

Quelle: WIFO (Fritz, Huber, Huemer), Arbeitsmarktpolitik in Oberösterreich, September 2006, S 104ff; mit bezug auf Mikrozensus 2005; bzw. IBE 2005 – WB-Beteiligung im letzten Jahr, vgl. Mikrozensus 2003


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ÖTraining Rates of Young Employees (31-35) by Income (Y) and Time of

Last Training(1) last Year -> x = 42 % (2) last 3 Years -> x =63 % (3) last 10 Years - > x =79 % (4) Never –> x = 17 %

52

77,488,5

8,8

46,8

68

82,8

12,7

30,4

50,7

68,1

27,6

0

20

40

60

80

100

top Y middle Y low Y

-1 -2 -3 -4


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Distribution of Gross Income Groups of Employees by Gender and White or Blue Color in Austria 2004

Q: STATISTIK AUSTRIA, Lohnsteuerstatistik 2006. Erstellt am 06.11.2007.

0

20.000

40.000

60.000

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unter150

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unter200

200und

mehr

blueC female whiteC female

blue C male whiteC male


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Distribution of Gross Income Groups of Employees in Austria 2004 Q: STATISTIK AUSTRIA, Lohnsteuerstatistik 2006. Erstellt am 06.11.2007.

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

16,0%

0 bisunter 2

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200und

mehr

Employees Blue White

0 % 38,3 % 43,6 % 50 %

35,2% 44,6% 29,0% 40,9% 47,2% 37,4% 20% 8% 26% 4% 0% 7%

tax deduction fortraining expenses


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ÖSome empirical effects of co-

financing training expenses of employees in UAEvaluation of UA TRAc > 1/200 – 8/2003• typical social-structure of users• Restricted access in some districts• Top content: IT, technic, language, BRPEvaluation of AK-TRBo – certain dimensions in real

time• Significant older and more female workers• Differences in regional accessDifferent 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• ............


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ÖSome empirical effects .... - 2

Joint Evaluation of AK-TRBo & AK-MeDi > 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...


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ÖUser of ILAs by Gender

uaTRA & AK-TrBo & AK-Members im Vergleich

55%

72%

61,8%

46% 45%

28%34,3%

54%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Frauen Männer

ua-TRAc 06 AK-TRBo 2007 AK-TRBo+AK-MeDi AK-Members


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ÖDistribution of Age-Groups 2003

0

5

10

15

20

25

30

35

40

- 24 years 25-34 years 35-45 years 45+ years

working Force UA TRAc AK-TRBo


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ÖSome Conclusions and

Questions ??

Bring it all together to one picture – see how the training & life long learning system could work more effective by ILAs

There is a need for compensation in life long learning and training – what can ILA cover ?

Why do ILAs/co-financing work better with females ?

Knowledge-based sensible steering of co-financing programs is important – but who holds the steering wheel ?

How much training-unites can the disposable income of an employee buy ?

With or without ILA ? What is the ROI and for whom ?


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Thank You

See You in Linz 2009

Cultural Capital 2009

Documents

The ILA-System in Upper Austria ILAs in the assisted area for vocational training in Upper Austria