Study Reveals Jobcenters Allocate Majority of Funds to Administration Over Job Placement

Bertelsmann-Stiftung analysis shows inefficiencies in Germany's Bürgergeld system, with up to 70% of jobcenter budgets spent on internal operations rather than employment assistance.

Jobcenters in Germany spent 6.5 billion euros on administration in 2024, compared to 3.8 billion euros on job placement and training programs.
The Bertelsmann-Stiftung study highlights a 39% increase in administrative costs over the past decade, while funding for employment support has stagnated.
Since the introduction of Bürgergeld in 2023, successful job market integrations have declined by approximately 6%.
Reform proposals include stricter but fair sanctions for non-compliance, earlier activation of recipients, and streamlined social benefits to incentivize work.
Germany's Bürgergeld system currently supports 5.4 million people, with 1.9 million actively seeking employment and 830,000 relying on the program to supplement low wages.

Westdeutsche Allgemeine Zeitung