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The Year of Opportunities for the Unemployed and Contributors

In 2019, the Federal Employment Agency (Bundesagentur für Arbeit - BA) will have sufficient funds at its disposal both for the contribution-financed insurance benefit and for the first time for the tax-financed basic insurance.
10 Dec 2018 | Press Release No. 35

"Although the reduction in the contribution rate will reduce income by around six billion euros, there is still sufficient money available to finance support measures in unemployment insurance. The new budget for the basic pension takes account of the fact that our colleagues in the Job Centers contribute to the social security of around six million people - under difficult conditions. We also know that intensive care for people and their families can lead to success in the area of long-term unemployment and prevention," says BA CFO Valerie Holsboer.

Tax financed

For the year 2019, the federal government will increase the funds for integration services and administrative costs of the job centres by a total of ten percent or around one billion euros to 10.4 billion euros.

The budget for integration services will be increased by more than 400 million euros compared to the previous year. This enables the job centres to finance further training and measures and to pay subsidies to employers. This figure also includes the investments for the social labour market (around 900 million euros), which the Job Centres will have to finance from the 1st of January 2019. In addition, up to 700 million euros from the so-called passive-active transfer can be used: This new financing instrument is a savings from unemployment benefit II that can be used to finance the social labour market.

The budget for administrative tasks (personnel and material expenses) of the Job Centres in 2019 amounts to 5.5 billion euros, an increase of around 500 million euros.

Contribution financed

With its contribution-financed budget for unemployment insurance for 2019, the BA is providing important impetus for further training and qualification. The financial resources for the promotion of further training in the BA budget will be increased from EUR 1.66 billion to EUR 2.10 billion. For all labour market policy measures, around 10 billion euros are earmarked in the budget for the coming year.

Overview of Finances 2019:

Basic security for job seekers (federal budget / tax revenue)

  • Unemployment benefit II: 20.6 billion euros (of which: Passive active exchange: 0.7 billion euros)
  • Integration services: 4.9 billion euros
  • Administrative expenses: 5.5 billion euros (including residual expenditure funds)

Unemployment insurance (BA budget / contribution funds)

  • Unemployment benefit I: 14.4 billion euros
  • Active employment promotion: 10 billion euros
  • Income: 35,1 billion euros
  • Expenses: 34,5 billion euros