Not only that, but depending on which state you are in in Germany (and Austria) you get routed at around 4th grade. If the teachers decide that you are academically fit for it then you go on to the Gymnasium, which prepares you for college, often with some focus for your class (e.g.: mathematics, arts, or science). If those same teachers decide that you are not up to college, but are still smart enough for something skilled, then you go on to Realschule, which still has some focus on academics, but is steering you to something like being a secretary, or a generic office worker. And finally there is the Hauptschule track. Here you are being groomed for something more involved with labor. The academics are not nearly so rigorous, and there is almost always the expectation that you will be steered into an apprenticeship for the final 4 years of what we (in the U.S.) would have as High School. Some of these apprenticeships can be quite prestigious (e.g.: the BMW technician school in Munich), but many of them are pretty pedestrian (e.g.: learning to run agricultural equipment).
For most people this routing when they are 10 (or so) decides what routes are open to them later in life. There are exceptions to this (my host sister went to Realschule, and later took the Abiture, the the test that got her into college), but they are pretty rare.
I have always been a bit leery of choices made so early in life, but it works pretty well in Germany.