When asked by Tony Blair for the secret of her country’s resilience, Angela Merkel, the German chancellor, said: “We still make things.” It is a question you often hear in the US nowadays. It would be an exaggeration to say Germany is back in fashion. There is too much disapproval of Berlin’s handling of the eurozone crisis for that. Yet when it comes to the labour market, the US is suffering from a rising case of “German envy”, as one analyst puts it.
“People are continually asking me how we do it,” says Eric Spiegel, the US chief executive of Siemens , which has the distinction of being cited by Barack Obama in his last two State of the Union speeches. Getting a “shout out” from the US president may sound trivial – although executives at unuttered competitors, such as General Electric, do not see it that way. But Mr Obama was only repeating what was being widely said by many business leaders and trade unionists in the US. “Can we replicate the German model?” asks a centrist Democratic senator.
As a package, the answer is no. Germany channels roughly half of all high-school students into the vocational education stream from the age of 16. In the US that would be seen as too divisive, even un-American. More than 40 per cent of Germans become apprentices. Only 0.3 per cent of the US labour force does so. But with the US participation rate continuing to plummet – last month another 496,000 Americans gave up looking for work – many US politicians are scouring Germany for answers.