The head of the Federal Employment Agency (BA), Andrea Nahles, has urged the German government to prioritize the integration of artificial intelligence (AI) into the workforce. While acknowledging the ongoing reform of the Citizen’s Basic Income (Bürgergeld), Nahles stated that these changes alone are insufficient to significantly reduce unemployment figures.
Speaking to the news outlet “Welt” on Tuesday, Nahles emphasized the need to strategically combine AI technology with established German industries, fostering collaboration between businesses of varying sizes in new, specialized clusters. She criticized past efforts in this area as lacking consistency and called for a renewed and dedicated focus on modernization and digitalization.
Nahles stressed that alongside the Bürgergeld reforms, which she indicated the BA is providing technical input on, a more receptive labor market is crucial. She cautioned that even strengthened obligations for job seekers will not be effective without a market capable of absorbing them. “I can envision a very effective package being implemented early next year, combining a more welcoming labor market, strengthened participation requirements and encouraging real change in the job market. It’s not too late for everyone to accelerate their efforts.
Regarding the recent unemployment figures, which demonstrated a weaker-than-usual seasonal decline, Nahles acknowledged the lack of a robust economic upturn. While acknowledging announced job cuts at major corporations like Lufthansa and Bosch, she noted that these are likely to be mitigated through measures like early retirement schemes and severance packages.
However, Nahles expressed greater concern over the rising number of business insolvencies, particularly impacting smaller suppliers. “It’s not the large names that concern me as much, but rather the many smaller businesses, often overlooked, struggling to survive” she said.
The sentiment was echoed by Zada Salihovic, Social Security Policy spokesperson for the Left Party, who criticized the government’s inaction. “The hoped-for recovery in the labor market is failing to materialize. Instead, the negative trend continues even in September and the federal government is passively watching” Salihovic said. She further argued that the government’s labor market policies are failing due to insufficient budget allocations for reintegration measures and called on Labor Minister Bas and Finance Minister Klingbeil to take responsibility, providing both Job Centers and training providers with necessary planning certainty to support long-term unemployment.