A recent audit by Germany’s Federal Audit Court has identified persistent shortcomings in the performance of Job Centers and cast doubt on anticipated savings resulting from recent welfare reforms. The audit, presented to the Bundestag’s budget committee, highlights a continuing struggle to effectively engage eligible individuals and place them in employment.
The report indicates that potential avenues for reducing the number of welfare recipients and associated expenditures are currently being overlooked. This is attributed, in part, to deficiencies within the placement process. A significant concern is the lack of engagement displayed by a segment of recipients, despite receiving benefits. Individuals frequently become unreachable for extended periods, months or even years and fail to attend scheduled consultations.
Furthermore, the expected reductions in welfare spending, anticipated from stricter rules implemented since 2024 targeting individuals repeatedly refusing suitable employment (“total rejecters”), have not materialized. The audit reveals that Job Centers have, to date, applied these stricter regulations to only a small, double-digit number of recipients nationwide. The findings raise questions about the overall efficacy of the implemented reforms and the potential for realizing the projected budgetary savings.