Gewerkschaft Warns of Financial Strain
Economy / Finance

Gewerkschaft Warns of Financial Strain

As the new vocational training year commences, concerns are mounting over the financial strain faced by young apprentices regarding housing costs. Stefan Körzell, a board member of the German Confederation of Trade Unions (DGB), emphasized the critical need for affordable housing alongside a quality training placement. He stated that many apprentices find rent and utilities consuming nearly their entire compensation.

This assessment is supported by a recent study from the Moses Mendelssohn Institute, which indicates an average rent of €493 for a shared apartment room in German university cities. Apprentices, typically receiving a legally mandated minimum gross compensation of €682, are increasingly struggling to manage these expenses.

The DGB highlights that apprentices independent of their parents’ homes often experience significant financial constraints at the end of the month. A 2020 DGB training report previously demonstrated that apprentices living independently are considerably more reliant on supplementary income from part-time jobs or government assistance like the Federal Education and Training Assistance Act (BFA). This situation has been exacerbated by subsequent increases in rental costs and the general cost of living.

The DGB warns that this trend could negatively impact regions with already strained housing markets. Young people may be discouraged from pursuing apprenticeships in these areas not due to lack of interest, but due to the simple inability to find affordable accommodation.

To address this issue, Körzell is urging the newly formed federal government to take action. He advocates for the rapid establishment of a federal competence center for apprentice housing, as outlined in the governing coalition’s agreement. This center would aim to connect municipal housing companies, local authorities, youth welfare organizations, youth associations and non-profit housing initiatives to facilitate the creation of affordable, purpose-built accommodation for apprentices.

The federal government had previously planned to increase funding for the “Young Living” program from €500 million to €1 billion annually to expand housing options for young people. However, the DGB notes that these funds are presently largely utilized by institutions supporting student housing, such as student services, leaving apprentices without comparable infrastructure to ensure adequate and affordable housing.