The world of work is rapidly changing. Digitalisation, globalisation, and demographic change are having a profound impact on the type and quality of jobs available and the skills required to perform them. The extent to which individuals, companies and whole economies can reap the benefits of these changes will depend on the readiness of adult learning systems to help people develop and maintain relevant skills over their working careers.

A decade of robust economic and employment growth in Germany was brought to an abrupt end by the COVID‑19 pandemic. Already in a state of flux due to digitalisation, population ageing and the transition to a low-carbon economy, the labour market is likely to undergo further changes at an accelerating rate. Now more than ever, policymakers must support future‑ready continuing education and training systems that allow individuals and enterprises to adapt to these changes, and ensure that Germany’s strong economic performance endures, and continues to support its high standards of living and well-being.

Germany has a strong skill development system. However, participation in learning beyond initial education lags behind other high-performing OECD countries. It also varies considerably across different groups of the population. Adults with low skills, those on low wages and those working in small and medium enterprises have particularly low participation rates. This is problematic in a rapidly changing labour market, where participation in continuing education and training is a precondition for individuals, enterprises and economies to harness the benefits of these changes. This report examines how effectively the system prepares people and enterprises for the changes occurring in the world of work, and identifies what changes are necessary to make the CET system more future-ready. It makes recommendations based on international good practice.

Following a decade of robust economic and employment growth, the COVID‑19 crisis has led to economic disruption in Germany. Already prior to the crisis, the nature of work had been changing due to digitalisation, population ageing and the transition to a low-carbon economy. These changes will likely accelerate in the context of the COVID‑19 fallout. To ensure that Germany’s past strong social and economic outcomes persist in the future, policy makers must ensure a future‑ready continuing education and training system that allows individuals and enterprises to adapt to these changes. This chapter discusses i) how the skill demand of the labour market is changing and the resulting skill imbalances; ii) the skill profile of the German population; and iii) current patterns of participation in continuing education and training.

In most countries, CET is not organised as a systematic, cohesive and unified structure. It rather resembles a complex landscape accommodating a variety of providers, policy frameworks and stakeholder interests. The position of CET at the nexus of different policy areas, including education, labour market and social policy, poses additional complexity challenges. This chapter sketches the key features of the German CET landscape, investigating the governance and the structure of CET provision. It identifies key challenges of the current setup and develops recommendations for how to improve it.

Future‑ready CET systems provide comprehensive support for individuals to help them adapt to changes in the labour market and manage their transitions. Guidance services help individuals to identify their skill development needs and to navigate the complex landscape of CET opportunities. Validation processes increase the visibility of individuals’ full skill-sets. Partial qualifications provide flexible learning paths to manage transitions. In ideal CET systems there is close integration of guidance, validation and opportunities for education and training. This chapter reviews i) the guidance landscape for individuals and enterprises; ii) existing validation opportunities; and iii) the state of partial qualifications in Germany. It identifies key challenges of the current set-up and develops recommendations.

When it comes to funding CET, two of the most frequently asked questions are: What is a sufficient level of investment and who should pay for it? Market logic suggests that those who benefit from participation should share in the cost. In practice, things are not so simple. This chapter analyses i) how CET is funded in Germany; ii) the level of investment in comparison to other OECD countries; iii) how investment is distributed across different actors; and iv) the landscape of financial incentives available to individuals and enterprises. It identifies key challenges of the existing system and develops actionable recommendations.

Adults with low skills are less likely to participate in CET than adults with higher skill levels. Germany has some of the largest differences in participation rates between these groups among OECD countries. While the insight that low-skilled adults are less likely to participate in CET is not new, ongoing changes in the world of work have a particularly negative effect on the labour market chances of this group and increase their need for reskilling and upskilling. This chapter investigates learning participation of low-skilled adults, looking at i) the incidence of adults with low skills in Germany; ii) their patterns of learning participation; iii) the barriers that may prevent them from engaging in learning; and iv) the CET opportunities currently available to them. It highlights key challenges and develops recommendations.