Study Criticizes Jobcenter Spending Priorities in Germany’s Bürgergeld System

Bertelsmann Stiftung analysis highlights excessive administrative costs and declining job market integration under the Bürgergeld program.

The Bürgergeld program, which replaced Hartz-IV in 2023, currently supports 5.4 million people in Germany, including unemployed individuals, low-income workers, and non-working dependents.
A Bertelsmann Stiftung study found that Jobcenters allocated up to 70% of their funding to administrative costs, leaving less for job training and employment support.
Since the introduction of Bürgergeld, successful workforce integrations have dropped by approximately 6%, according to the analysis.
The study recommends reforms to refocus on the 'Fördern und Fordern' principle, emphasizing both support and accountability for recipients.
Friedrich Merz, likely the next German Chancellor, has proposed a radical overhaul, including stricter sanctions for those who refuse reasonable work offers.