Germany's Employment Agency Eyes Unemployment Insurance Rate Hike Amid Deficit

Andrea Nahles, chair of the Bundesagentur für Arbeit, said the agency's €8 billion deficit this year, plus a €1.4 billion carry‑over, may be addressed through a federal loan, subsidy or raising the unemployment‑insurance contribution rate, though the agency does not intend to seek an increase.

A 0.1‑percentage‑point rise would generate about €1.6 billion annually, but employer groups warn it would hurt competitiveness. The agency is also pursuing digitalisation and other cost‑saving measures.

In Saxony‑Anhalt, the state government and the agency have launched the “Masterplan Zukunftsgeneration” to tackle the region’s high youth unemployment—nearly 10 % of 15‑25‑year‑olds. The plan aims to halve youth joblessness by 2030 through school‑to‑training pathways, counseling, and expanded qualification programs.