Construction

The German building and contracting industry is extremely important as an economic sector, a source of employment, a setting for initial and continuing vocational education and training, and an actor engaged in the creation of living and working spaces. In Germany the building trade currently employs a workforce of 1.6 million consisting of two main producer groups, the building construction and the building finishing trades. It accounts for over 11 per cent of the gross domestic product. The building and construction industry is also an important provider of initial vocational training. Despite declining numbers in absolute terms, more young people receive initial vocational training in this industry than in most other sectors. The training rate of 9.4 per cent is also higher than the average for other sectors (cf. BMBF 2005; BMWA 2005). This is explained in good part by the levy-based financing of initial vocational training, which is a long-standing tradition in the building and construction industry. Based on a voluntary agreement between the social partners, all firms in the industry have, since 1976, contributed a levy towards the costs of initial vocational training. The majority of the funding is then paid out by the Sozialkasse der Bildwirtschaft (SOKA-BAU), the German construction industry's 'leave and wage-equalisation fund', to the firms actually providing initial vocational training.

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