Do you know someone considering doing an apprenticeship? If so, it might be a good idea to read their contract very carefully, because whom the aspiring apprentice signs an agreement with can have a significant impact on the outcome. The likelihood of passing the final exam and obtaining a craft certificate is significantly higher for apprentices affiliated with a training agency than for those who have a contract directly with a private, independent company.

This is one of the findings of a recent study from the Norwegian University of Science and Technology (NTNU). The researchers have investigated the role that training agencies play in the transition from school to an apprenticeship. The goal was to gain a better understanding of whether the agencies contribute to the completion of apprenticeship programmes and how effective they are.

“We found a surprisingly significant disadvantage for apprentices who were not affiliated with a training agency. We also identified major differences between the various training agencies,” said Torberg Falch, a professor at NTNU’s Department of Economics.

He conducted the study together with Anna Cecilia Rapp, an associate professor at NTNU’s Department of Teacher Education, who led the project ‘From School to Work’.

“Previous qualitative studies suggested that these agencies serve as an important link between education and working life. They recruit and support the companies offering training, place and monitor apprentices, ensure the quality of training, and help maintain continuity. However, this has not been investigated before using quantitative methods, as we have done,” explained Rapp.

The NTNU study shows that young people who begin their apprenticeships at private, independent companies are more likely to amend or change their contracts than others. In addition, 37 per cent of these contracts end with the apprentice failing the final exam. The study also found that six out of ten apprentices who fail the final exam change contracts – most often to a training agency. They then complete their training in the same manner as those who started directly with a training agency.

The NTNU researchers observed significant differences in completion rates, both between training agencies and between agencies and training companies that are not part of the apprenticeship programme.

Currently, 70 per cent of all upper secondary school pupils complete their education within the standard time frame. An additional 10 per cent complete their training with up to a two-year delay.

More than half of upper secondary school pupils currently choose vocational training. Here, the completion rate is 20 per cent lower, and dropout is a major problem.

The study is based on apprenticeship contracts and educational data from just over 8000 people in Trøndelag County. The dataset covers the period from 2018 to 2023, and because it also includes apprentices in independent companies, the researchers have been able to compare the two groups.

“We know that an even greater shortage of skilled workers is expected in certain professions. At the same time, vocational programmes as a whole have a significantly lower completion rate than general studies programmes,” said Rapp.

Vulnerable groups of pupils are more likely to drop out before their apprenticeship period begins. Pupils from disadvantaged backgrounds, with lower grades, or facing other challenges are losing out in the competition for the most attractive apprenticeships.

The likelihood of completing an apprenticeship programme is also closely linked to lower secondary school grades. According to the study, one grade point above the average increases the probability of passing the final exam by 10.1 percentage points.

“It appears that lower secondary school grades reflect characteristics of pupils that are highly significant for how well they do in working life,” explained the researchers.

Most apprenticeship contracts are found in the construction industry, followed by the healthcare, childhood and youth development sector. There tend to be more men in the construction, electrical and industrial sectors, while women dominate in the healthcare sector.

“While boys tend to perform less well in school than girls, it appears that they make up for some of this during their apprenticeship. These findings also suggest that the underrepresented gender in a vocational field faces the greatest challenges,” said the NTNU researchers.

One finding is that men are generally more likely to complete their apprenticeships, but not in public-sector training companies. The public sector often takes on apprentices from the Healthcare, Childhood and Youth Development programme. The researchers cannot say for certain whether this is due to the public-sector training companies themselves or to specific characteristics of the educational programme.

“While boys tend to perform less well in school than girls, it appears that they make up for some of this during their apprenticeship. These findings also suggest that the underrepresented gender in a vocational field faces the greatest challenges,” said the NTNU researchers.

In addition to social background, gender and ethnicity, factors such as place of residence, unemployment and the local business structure also play a role. The shortage of apprenticeships is a challenge.

The study highlights an imbalance between the knowledge pupils acquire through the educational programmes and what the labour market actually needs and wants. Schools collaborate with employers that may be subject to competitive pressure. As times change and technologies, regulatory frameworks and economic conditions evolve, the apprenticeship period can become a particularly vulnerable stage.

The NTNU researchers conclude that training agencies serve as an important and stabilizing component of what they call the skills ecosystem for vocational training.