Overview

• Jobcenters spent €6.5 billion on administration in 2024, representing 60% of their €10.7 billion budget, while funds for employment promotion remained stagnant at €3.8 billion.
• Since the Bürgergeld system's introduction in 2023, successful integrations into the labor market have decreased by approximately 6%, raising concerns about its effectiveness.
• The Bertelsmann Stiftung study highlights that some Jobcenters allocate up to 70% of their budgets to administration, with limited transparency on outcomes.
• Friedrich Merz, likely to become Germany's next Chancellor, has proposed stricter sanctions and a shift to a 'basic security for job seekers' model to address these issues.
• The study also points to disincentives for additional work under the current system, as rising income leads to significant benefit reductions, leaving minimal net financial gains.