Apprentice retention rate falls amid economic slump

Germany's prolonged economic slowdown has led to a significant drop in the rate at which companies retain apprentices after they complete their training. In 2025, the retention rate fell to 75%, a noticeable decline from the record high of 79% observed in the preceding year, according to the Institute for Employment Research (IAB) in Nuremberg.

This trend presents a paradox in the labor market: while more young people are struggling to find training positions, a considerable number of available apprenticeship slots remain unfilled. The IAB attributes this persistent issue to two main factors: a mismatch in qualifications between applicants and the available jobs, and geographical disparities, meaning candidates often do not live in the areas where the positions are located.

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The situation is paradoxical: Despite a rising number of young people without training positions, it is to be expected that the non-occupancy rate of training positions will remain high.

"To prevent a further slump in the training market, young people and companies need to be brought together better," stated IAB researcher Barbara Schwengler. Certain sectors demonstrate higher retention rates, including mining, energy and water supply, waste management, finance, insurance, and public administration, where approximately 90% of apprentices were kept on in 2025. The industrial sector, though above the average at 77%, saw a five-point decrease in its retention rate within a year.

Conversely, sectors like agriculture show particularly low retention rates, with only 44% of apprentices being hired after their training. Data from the Federal Employment Agency indicates that 418,000 individuals applied for apprenticeships in the current year, a slight increase. However, only 126,000 reported successful placements by July. The agency also registered 437,000 open apprenticeship positions, a decrease of 35,000 compared to the previous year, highlighting the ongoing challenges in aligning supply and demand within the vocational training system.

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To prevent a further slump in the training market, young people and companies need to be brought together better.