Germany's £860 job bonus: Ambition or absurdity?
The German government plans to introduce a bonus for unemployed benefit recipients who secure socially insured work and maintain it for at least a year, reports "Deutsche Welle". The bonus will amount to £860.
"Deutsche Welle" explains that the ministry notes the bonus should motivate unemployed individuals to find permanent work. The government argues that this initiative aims to genuinely support the long-term unemployed in transitioning out of the "basic state benefits system".
£860 bonus after a year of work
The objective is also to minimise the risk of these individuals quickly returning to the social care system.
A report from the Institute for Employment Research (IAB) in Nuremberg reveals a concerning trend in the German labour market. Unemployment in Germany is rising – in 2024, the average annual number of unemployed people is expected to increase by 170,000, reaching 2.78 million, and in the following year, by another 61,000, to 2.84 million unemployed.
IAB expert Enzo Weber highlights the record level of part-time employment. "In the first quarter of 2024, the percentage of people working part-time reached an unprecedented level of 39.1 per cent, marking an increase of 0.3 percentage points compared to the same period the previous year," Weber states in the institute’s report.
The increase in part-time employment is directly linked to the weakening of the industrial and construction sectors. IAB experts point out that these sectors, traditionally offering stable full-time employment, are currently facing significant difficulties, forcing employers to reduce working hours.
The idea sparks controversy
"Deutsche Welle" reports that the plan regarding the bonus is sparking controversy, including within the ruling coalition of the SPD, Greens, and FDP. Frank Bsirske, a Green politician and social policy expert, claims that a bonus for taking up work is unnecessary. He argues, as quoted by the portal, "The vast majority of individuals receiving citizens' benefits take up work if they have the opportunity."
Frank Schaeffler from the FDP is reportedly calling the government plan "absurd".
Martin Huber, the general secretary of the opposition CSU, also expresses negativity. He contends that a bonus of £860 is "a pure mockery of those who have been performing their work for years", writes DW.
