A recent audit by the German Federal Court of Auditors has raised concerns regarding the effectiveness of Job Centres and cast doubt on the projected savings associated with recent welfare reforms. The report, submitted to the Bundestag’s budget committee and reported by POLITICO, highlights ongoing deficiencies in the agencies’ ability to successfully integrate eligible individuals into the workforce.
The auditors’ findings indicate that Job Centres are not adequately leveraging existing employment opportunities to reduce the number of welfare recipients and, consequently, associated expenditures. This failure stems, in part, from shortcomings within the employment placement process.
The report details a significant portion of recipients who demonstrate minimal engagement with placement services despite receiving ongoing welfare benefits. These individuals frequently become unresponsive to outreach efforts for extended periods, often failing to attend scheduled consultations.
Furthermore, anticipated savings from stricter regulations implemented in 2024, intended to reduce benefits for individuals repeatedly refusing suitable employment, have not materialized. The report notes that Job Centres have, to date, applied this regulation to a limited number of recipients across the country. The audit suggests a reassessment of strategies to maximize workforce integration and realize projected cost reductions within the welfare system.
