The Director General of the Federal Employment Agency (BA), Andrea Nahles, has urged the German government to prioritize the integration of artificial intelligence (AI) into the workforce. While reforms to the basic income support system (Bürgergeld) are necessary, Nahles believes they alone will not be sufficient to reduce unemployment figures.
Speaking to “Welt” on Tuesday, Nahles emphasized the need to strategically connect emerging technologies, specifically AI, with the German Werkbank – a government initiative aimed at fostering innovation and collaboration. She highlighted the potential for this connection to create new collaborative clusters involving businesses of all sizes and expressed concern that previous modernization and digitization efforts have lacked consistency.
Nahles acknowledged the ongoing reforms to the basic income support system and the BA’s involvement in providing technical expertise. However, she stressed that these reforms, even with strengthened obligations for recipients, will not be transformative without a receptive labor market. Currently, job seekers face limited opportunities, a situation even more challenging than during the COVID-19 pandemic.
She anticipates that a combination of a more adaptable labor market, advancements in policy and stringent obligations could yield a positive impact on the job market by early next year. While emphasizing that action is still possible, Nahles underscored the importance of urgency.
The recent slowdown in the typical autumnal decrease in unemployment figures reflects a lack of broader economic momentum. While anticipated job cuts at large corporations like Lufthansa and Bosch are being mitigated through measures like early retirement and severance packages, Nahles expressed particular concern about the rising number of company insolvencies, especially among smaller suppliers struggling to survive. She believes this poses a significant, often overlooked, challenge for the labor market.
The concerns were echoed by Zada Salihovic, the Left faction’s spokesperson for labor market policy, who criticized the government’s inaction regarding the stagnant labor market. Salihovic argued that fewer people are being effectively assisted in finding employment compared to the previous year, leaving millions underserved. She urged Labor Minister Bas and Finance Minister Klingbeil to take responsibility and allocate sufficient funding for integration programs, emphasizing the need for planning security for both job centers and training providers to ensure opportunities for long-term unemployed individuals.
