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Basic Social Security: Improving labour market integration

Although the employment situation is developing well overall, there is currently a lack of success regarding labour market integration of disadvantaged gropus. Here we would like to give an external impulse for the development of consensual solutions.

More than ten years after Agenda 2010, we must ask ourselves where further improvements are needed in line with the basic principle of “carrots and sticks.” Despite good overall employment effects, there is currently a lack of success regarding labour market integration of disadvantaged groups. 

This applies in particular to the fixed base of the long-term unemployed. Although the number of the long-term unemployed has been reduced in recent years, 43 percent of all unemployed in Germany are still affected by long-term unemployment. In absolute figures, this corresponds to almost one million people. Also the large number of refugees within Germany’s SGB II basic security system calls for answers from politics. Thus labor market integration is becoming more and more complex, while at the same time the coverage offered by unemployment insurance and the amount spent on  active labour market policies are falling. 

In the course of technological change and globalisation processes and the associated polarisation trends on the labour market, we are also observing a further deterioration in the employment opportunities of the low-skilled. All this increases the pressure on politicians to act.

Effective action requires a broad consensus among the stakeholders 

There are already a number of pilot projects at the federal and local level designed to improve the integration of  people, who do not particapte in the labpur market. There is also a wide range of suggestions from the job centers, academia, the judiciary and unemployment initiatives. There is therefore no shortage of ideas, but rather a lack of a consolidated knowledge base and a sustainable consensus regarding the need for reform to improve job placement.

Following up on our work in the past, we would like to provide external impetus for this within the framework of our project activities. Our goal is to improve the sustainable job placement of disadvanteged groups. In doing so, we not only focus on labour market policy measures, but also on improving the social inclusion of people who are not able to participate in the labour market. With the help of a commission of experts and preparatory short studies, we would like to sound out concrete reform needs and possible consensual solutions.

Main questions 

  • What reforms are needed to improve labour market integration of disadvantaged groups? 
  • What concrete needs for reform and possible consensual solutions result from currently discussed ideas? 

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