Help for the long-term unemployed in Germany

Citation

(1999), "Help for the long-term unemployed in Germany", Journal of European Industrial Training, Vol. 23 No. 8. https://doi.org/10.1108/jeit.1999.00323hab.014

Help for the long-term unemployed in Germany

Help for the long-term unemployed in Germany

Keywords: Unemployment, Training, Disadvantaged groups

Long-term unemployment, i.e. people out of work for more than 12 months, is a top target for action by the German government this year, particularly by encouraging employers not to let people go.

Last year, the number of long-term jobless increased by 117,000 to reach an average 1,520,000, making up 35 per cent of all unemployed. Forty-six per cent of the total were women. In the second half of 1998, there were signs that measures were taking effect. On 31 December, the total was 1,440,000 which was 97,000 fewer than 12 months earlier.

During 1998, some 826,000 people who had been out of work for less than 12 months were involved in government employment programmes without being put on short time working, and this was extended to 419,000 people jobless for more than a year.

Last year, the law was changed to compel the government-run employment offices to investigate directly any case where someone has been on the jobless list for more than six months, and to interview the individual and former employer(s) to find out where the problem lies. The offices took on an extra 700 people for this counselling service.

New training facilities proved successful in helping 66,800 people to a permanent job.

The progress made with these measures has encouraged the government to set a target of cutting long-term unemployment by 140,000 or 10 per cent in 1999. Those out of work will become eligible for the special measures such as individual counselling after six months instead of 12 months. Special assistance will be given in the eastern LÌnder where the problem is much worse.

As before, firms will be paid by the government to keep on people, but they can now keep the subsidy for longer (up to a maximum of 60 months) to prevent workers being dismissed. Special consideration will be given to older workers, the disabled and young people who might otherwise be hard to place. It is hoped to help an average 50,000 people this year at a cost of an extra DM 750 million.

On top of that, the state (Land) governments have their own programmes including:

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  subsidies for firms where there are workers whose jobs are at risk;

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  other preventive measures to keep people in work, particularly older men and women;

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  training or retraining facilities for long-term job-seekers;

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  a contact networking programme called "Work not assistance".

These programmes get part of their money from regional structural funds and local government initiatives, often not just the town council but chambers of trade. Main mover in overall proactive labour market measures is the federal employment service with a DM 45.3 billion budget, which includes a top-up from the Federal Government.