Bürgergeld Reform Proposed to Address Inefficiencies and Falling Job Integration Rates

Friedrich Merz advocates a shift to a Grundsicherung model as criticism mounts over high administrative costs and declining employment outcomes.

A Bertelsmann Stiftung study reveals that up to 70% of Jobcenter funds are allocated to administration rather than employment promotion, with administrative costs rising 39% over the past decade.
The Bürgergeld system, introduced in 2023 to replace Hartz IV, has seen a 6% drop in labor market integrations despite supporting 5.4 million people, including 1.9 million unemployed individuals.
Friedrich Merz, likely to become Germany's next Chancellor, has proposed stricter sanctions and a complete overhaul to incentivize work and improve efficiency.
The Bertelsmann Stiftung calls for comprehensive reforms, including earlier activation of recipients and enhanced transparency in Jobcenter operations.
Critics label the system a 'bureaucratic monster,' citing insufficient financial incentives for work and excessive administrative burdens that hinder effective employment support.