Social Work Market: Heil's job plans bring new criticism

The government wants to spend four billion euros to provide jobs to the long-term unemployed – a project was approved today in the cabinet. But the plans do not go far enough for the Union and the Federal Agency

The social work market is the name of this grand coalition project: The people who depended on Hartz IV for years unemployed should be able to receive government-subsidized jobs. This is the bill proposed by the Minister of Labor Hubertus Heil (SPD), which was approved by the Federal Cabinet in Berlin.

Immediately before the expected decision, calls for further reforms were launched in the Union. Although the reform project is a step in the right direction, said labor market politician CDU Kai Whittaker the German News Agency in Berlin.

Whittaker sees other needs for reform. Affected people should be better supported by employment centers. "Only with a better care key, we help people who are already far away from the job market," said the MP.

The CDU politician called in the current legislative proposal, extending coaching: "Without intensive and long-term coaching, the announced reforms will fail terribly". Whittaker

The Federal Agency for Changes

Even the Federal Agency for Employment (BA) still sees the need for optimization. The Federal Agency has demanded that this be reimbursed to employers up to the local or collective salary. The current bill, however, provides that subsidies are paid only at the level of the minimum wage. "This is an additional barrier for potential employers in the case of a target group far removed from the labor market because it makes the employment of these people costly," says the BA. The German Association of Cities also drew attention to this problem

five-year funding period

According to the bill, new jobs must be funded for five years if Hartz IV during six years and only for a short time were. In the first two years, wages must be publicly subsidized at 100 per cent of the usual wage for the respective activities. The grant will then be reduced from ten points per year to 70% at the end.

All employers should be able to offer new badistance activities, as well as non-profit institutions and municipalities. For two-year-old unemployed, there should be two-year wage subsidies, 75% the first year and 50% the second year.

Hi: Opening the base of the long-term unemployed

ARD and ZDF, the situation on the job market is good, but now it is about to break the pedestal of the long-term unemployed. For four billion euros would be available. According to the coalition agreement, 150,000 new jobs are planned. In the 2017 annual average, there were 809,000 long-term unemployed with more than a year unemployed.

Heil rejected critics, the funding period was too long. These are people who have been outside for seven years and who are not immediately fit for the job market. It would take time to reconnect. "These people need a longer-term perspective."