15 Jan 2019 | Press Release No. 5
The annual financial statements of the Federal Employment Agency (BA) were better than planned: an increase of 2.5 billion euros was calculated in the original budget, which is based on the basic values of the federal government. In fact, the BA now closed the 2018 financial year with a surplus of 6.2 billion euro.
Valerie Holsboer, Chief Financial Officer, said in Nuremberg on Tuesday: "The positive development on the labour market has led to significantly lower expenditure over the course of the year. Unemployment has fallen for the fifth consecutive time to its lowest level since reunification. This starting position helped us to achieve a good financial result. This means that we can now significantly lower the premium rate and still look to the future with sound economic precautions. We therefore see 2019 as a year of opportunities and our budget will provide important impetus for further training and qualification".
Lower expenditure on unemployment and insolvency benefits
The high demand for labour led to a decline in unemployment last year. BA therefore had to pay less unemployment benefit I than budgeted. The total expenditure of 33.1 billion euros was about 3.3 billion euros below budget. The positive development on the labour market is also reflected in the expenditure for insolvency money, which at 588 million euros were around 212 million euros below expectations.
Employment subject to social security contributions was also higher than ever before. Employees and employers therefore paid 363 million euros more than the budget provided for.
Reserve at 23.5 billion euros
The bulk of the surplus will be transferred to the BA's reserve, which will increase to around EUR 23.5 billion. According to calculations by the Institute for Employment Research (IER), this order of magnitude is sufficient to cushion economic fluctuations.