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The 2018 budget of the BA: Well-equipped for the future

Board of the Federal Employment Agency (BA) of Germany adopts the budget for the year 2018
10 Nov 2017 | Press Release No. 25

The Board of the Federal Employment Agency (BA) of Germany approved the budget for the year 2018, today.
The following topics are particularly important to the Board of Directors and the Executive Board of the BA:

  • All people should have the opportunity to be integrated into the labour market and to be able to rise professionally - regardless of origin and gender. The BA contributes to this among others, by preventive counseling, placement, promotion of continuing education and professional orientation.
  • The supply of labour and skilled employees should be increased. An important step is increased female participation, but also, better integration of the elderly and people with disabilities. If not enough skilled employees are available, the BA will also be active internationally to meet the demand for skilled labour.
  • The cycle of unemployment, which is carried over from generation to generation, must be broken. Increased support and preventive measures should eliminate long-term unemployment cases, as many as possible.

The budget offers the financial framework for this.

The most important numbers at a glance:

The revenue of € 39.0 billion is offset by a total expenditure of € 36.4 billion. The premium income as the main source of financing, at € 33.8 billion, is € 1.7 billion higher than it was in the previous year. The budget foresees a surplus of € 2.5 billion, thanks to good labour market- and economic prospects.

The BA invests, especially in continuing vocational training and the participation of people with disabilities:

The total active employment promotion comprises a budget of € 9.8 billion, which is roughly at the same level as it was in the previous year.

Thus, a continuing high budget of € 1.7 billion is provided for the promotion of continuing vocational training, in order to support necessary and useful continuing education - whether for unemployed or employed people.

The budget for promoting the participation of disabled people in labour activities will be increased by € 100 million to € 2.5 billion.

The BA expects lower expenditure on passive benefit payouts:

In regard to the generally good economic situation, the passive benefit budgets may decline, leaving more room for maneuvering in the budget. For example, the unemployment benefit payout amounted to € 14.7 billion, € 900 million less than in the previous year.

Chairman of the Board of Directors, Ms. Annelie Buntenbach, emphasized: "Qualification is one, albeit not the decisive, key to tackling the as of yet unforeseeable developments and consequences of digitisation in the labour market. Also, we need to enable people to create career advancement. The labour market is becoming more complex, and we see it as the task of the BA to provide the best possible support to the people here.

For this, we need an integration section that enables good continuing education and training for as many people as possible - so that unemployment does not manifest itself and nobody is left out of the labour market. That's why the budget for these expenses remains at a high level."

Peter Clever, Deputy Chairman of the Board of Directors, stated: "The BA can invest around € 10 billion a day in the area of vocational rehabilitation with € 2.5 billion, and we are making € 100 million more available than in the previous year, in order to underline the importance of integrating people with disabilities into the education- and labour market, thereby making the BA an important contributor to their professional participation and inclusion in our society."