A fresh start
Consultation services and training opportunities are available to help unemployed people in Germany to quickly find a new job.
Clara Krug Anja Garbsch used to run a fabric shop in Neubrandenburg in the north-east of Germany for twelve years. When her lease came to an end, she could have moved her shop to a new location. However, sales had been declining since the COVID-19 pandemic. The 44-year-old wanted a fresh start, and decided to train as an occupational therapist. “If not now, then when?” she asked herself. Anja Garbsch had been interested in occupational therapy for a while. However, she wasn’t sure how she was supposed to pay for the training fees, find time to study and still make a living?
Her future training company, the workers’ welfare association Arbeiterwohlfahrt Neubrandenburg and the Federal Employment Agency (Bundesagentur für Arbeit, BA) were able to help. The BA also shares Anja’s story on its website. Her future employer and the BA worked together to find a solution: based on the so-called Qualification Opportunities Act, the BA took care of the training fees and subsidised Anja’s salary. Anja Garbsch went back to school and did not regret her decision.
This is an example of how the German welfare system supports people who are affected by changes to their working situation: with financial aid, personalised advice and training opportunities.
The person will receive unemployment benefit, if certain conditions are met. This allowance is funded through the unemployment insurance system to which employees and employers each contribute 1.3 percent of an employee’s gross pay. It replaces part of the person’s income (usually 60 percent of their most recent net pay) for a limited time. One of the conditions for this is that the person must have been insured for at least twelve months prior to claiming the benefit, must register as unemployed, and must be looking for a new job.
Who helps people find jobs?
The Employment Agency provides advice, helps people find jobs and supports them throughout the application process. It may also provide funding for further training or re-training. If specific conditions are met, course fees, as well as travel and childcare costs are covered for those who have a so-called education voucher. The Federal Employment Agency will also pay an additional 150 euros per month to people who are enrolled in training schemes that lead to recognised qualifications.
What happens if the unemployment benefit is not enough to survive and to people who are not eligible to receive it?
People in this situation can apply for basic income support through the job centre. The state finances this type of benefit from taxes. It aims to secure the minimum subsistence level and accommodation and heating costs may also be covered. Those who receive basic income support must cooperate with the job centre, attend appointments and make efforts to get a job or obtain a suitable qualification.
