Economy Federal Employment Agency
Andrea Nahles announces savings program for job center measures
Status: 01:03 | Reading time: 2 minutes
The current economic crisis is already making itself felt in the job centers, according to Federal Labor Minister Andrea Nahles (SPD).
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The job centers have to save, announces the head of the Federal Employment Agency, Andrea Nahles. Pay increases for staff are partly responsible for the rising costs. For this you have to cut back on the integration of the long-term unemployed. Because there is no more money.
Andrea Nahles, head of the Federal Employment Agency (BA), warns of financial difficulties in the job centers. In the federal government’s current budget draft, “insufficient active labor market funds and insufficient funds for administrative costs of the job center have not been planned”. “There is a minus of 6.6 percent, the equivalent of 700 million euros less,” said Nahles in an interview with WELT AM SONNTAG. “We are simply not sufficiently funded.”
The job centers are already reacting and are planning fewer measures to integrate the long-term unemployed. “The certainty that they can refinance that is gone,” said the former SPD chairwoman and federal labor minister.
Additional personnel costs of 300 million euros alone would be incurred in the coming year due to the wage increase at the job centers. “Sometimes the job centers cannot fill staff because they don’t know how to finance it in the long term,” says Nahles.
The austerity course comes at a time when the new citizens’ income actually envisages additional spending, especially in the case of measures for the long-term unemployed. It is still too early to assess how well the citizens’ allowance works, since the majority of the subsidies only came into force in July.
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When asked what the quantitative goal of citizen income was, Nahles said: “There are no quantitative goals, there are qualitative goals.” The fact that the number of employable benefit recipients has recently increased – it is almost four million – explains Nahles with the refugees from the Ukraine, who were included in the benefits of the citizen’s allowance. “There were long debates beforehand. But the big run on citizen income, which was feared because of the adjustment in benefits, did not materialize.”
The number of long-term unemployed is growing again
Nahles also said that the current crisis is also making itself felt in the job centers. “Those who are unemployed don’t find work as quickly.” After the pandemic, the number of long-term unemployed fell every month, but the trend is now reversing.
The BA itself also has “considerable difficulties” in recruiting employees, especially for the IT sector. The salaries in the private sector are so high that the authorities cannot keep up with the tariff structure.
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