German Employment Agency under fire for bloated spending amid falling unemployment
The Employment Agency, a German government body, faces criticism over its spending. Despite decreasing unemployment, its staff and services have grown, with a significant portion of insured contributions going towards its own apparatus. The agency's staff includes civil servants and employees of the Federal Employment Agency (OED). A substantial amount, over half, of the insured contributions is spent on their salaries and benefits. This is in stark contrast to car insurance companies, which use around 5% of contributions for their own expenses. The Employment Agency offers various services, such as counseling, school visits, and job fairs, but these are not free. Despite this, the agency's staff and services have continued to increase, even as unemployment has decreased. The exact number of civil servants and OED employees at the Employment Agency is unclear, but the total number of federal civil servants and judges is 201,410, with 32,880 employees in public-law institutions. However, specific figures for the Employment Agency's own contribution use are not available. Only 50 euros out of every 100 paid into unemployment insurance flow back to contributors as insurance benefits (ALG). The Employment Agency's spending on its own apparatus raises questions about the efficiency of its use of funds. As unemployment decreases, there are calls for a review of the agency's staffing and services.
