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Germany’s Job-Finding Rate Hits Record Low, Labor Agency Warns of Broadening Risk

BA chief Andrea Nahles urges training-focused policies over a return to strict placement rules in the pending Bürgergeld reform.

Overview

  • The Federal Employment Agency’s internal job‑finding indicator has fallen to 5.7, its lowest reading on record after typically hovering around 7.
  • Nahles says no group is insulated from job loss, with young entrants hit hardest and apprenticeship placements at a 25‑year low.
  • Vacancy levels remain weak, with IAB estimates showing Q3 2025 openings down about 19% year on year and roughly 288 unemployed per 100 open jobs.
  • The cabinet has backed a Bürgergeld overhaul reinstating a placement priority and tougher sanctions, but it still needs Bundestag approval before a planned July 1, 2026 start.
  • Nahles warns that rushing placements without matching skills leads to quick returns to job centers and calls for more qualification support and regional mobility.