Direct Request (CEACR) - adopted 2024, published 113rd ILC session (2025)

Employment Policy Convention, 1964 (No. 122) - Germany (Ratification: 1971)

The Committee notes the observations of the German Confederation of Trade Unions (DGB), received on 31 August 2023. The Committee requests the Government to provide its comments in this respect.

Articles 1, 2 and 3 of the Convention. Implementation of an active employment policy. Employment trends. In response to its previous comments regarding the impact of the COVID-19 pandemic, the Committee notes the Government’s indication that employment measures, including temporary special regulations on short-time work compensation, effectively mitigated the pandemic’s unexpected shock and reduced its impact on employment. The Government adds, however, that research on the effectiveness of these measures by the Federal Ministry of Labour and Social Affairs (BMAS) has not yet yielded results. One measure to stabilise employment and control rising unemployment was expanding short-time work. The number of short-time workers peaked at around six million in April 2020, dropping significantly to around 150,000 by November 2022. At its peak, 17.9 per cent of workers employed with social security benefits were claiming short-time benefits, which fell to 0.4 per cent by November 2022. The Government views the labour market policy from June 2020 to May 2023 positively, noting the labour market’s robustness by mid-2023 despite fluctuations in overall economic development due to the COVID-19 pandemic and the Russian Federation’s aggression against Ukraine. These events have had only a limited impact on the labour market. Unemployment rose to 2.9 million by June 2020 but fell to 2.3 million by May 2022. More recently, the number increased again, reaching 2.5 million in May 2023, due to refugees from Ukraine. Underemployment followed a similar trend, reaching 3.4 million in May 2023. The number of employed persons reached 45.7 million in April 2023, with those employed under social security contributions at 34.7 million in March 2023. Regarding long-term unemployment, the Government indicates that the number of long-term unemployed persons fell steadily, reaching its lowest level of around 700,000 at the end of 2019. However, the COVID-19 pandemic increased the number of long-term unemployed persons, as the chances of finding employment while unemployed were diminished. The number of long-term unemployed persons rose to 1.07 million in April 2021, decreasing to 880,000 by May 2023. Just under a third of these individuals are aged 55 and over, approximately 61 per cent lack a recognised professional qualification, and approximately 44 per cent of long-term unemployed persons are women. The Committee notes the measures taken to address long-term unemployment, including those within the Citizen’s Benefit Act. It also notes DGB’s observations indicating that the Government’s description of the labour market as robust somewhat distorts the context. During the pandemic and after the Russian Federation’s aggression against Ukraine, the labour market followed its usual economic cycle. The cyclical rise in unemployment was cushioned mainly by an employment policy instrument: short-time work. In areas where short-time work regulations could not be applied, such as marginal employment without unemployment insurance, there was, at least temporarily, the expected far-reaching and drastic reduction in jobs. The DGB adds that the robust appearance of the labour market is attributed to the statutory unemployment insurance scheme’s strength. Economic policy measures also supported the economy and labour market. The Committee requests the Government to continue to provide updated information regarding the impact of employment policy measures on employment, unemployment, and underemployment. It also requests that the Government continue to provide information, including statistical data disaggregated by age and sex, on the nature and impact of measures taken to reduce long-term unemployment. In view of the observations of the DGB, the Committee also requests the Government to provide information on the procedures adopted to ensure that the effects on employment of measures taken to promote economic development receive due consideration, at both the planning and the implementation stages, and that the principal measures of employment policy are decided on and kept under periodical review within the framework of a coordinated economic and social policy.

Employment services. In its previous comments, the Committee noted the DGB’s observations regarding the Skilled Workers Immigration Law, aimed at managing the migration of skilled workers from non-European countries seeking to enter the German labour market. The market is open to unregulated domestic and foreign private agencies, which often recruit workers for a fee and assign them to work in Germany. The DGB maintained its awareness of numerous cases of abuse related to private work placements, particularly by foreign private recruiters operating without supervision, who should be subject to certification. In response to the DGB’s observations, the Government indicates that since 1 January 2022, three changes have been implemented in the area of private employment services. Firstly, private employment agencies involved in cross-border placements are now required to inform jobseekers about the working conditions in the employment relationship and the advisory services offered by social partner associations and public authorities in Germany before any employment contract is concluded. Secondly, private employment agencies may no longer request or accept commissions from jobseekers for placements in marginal employment. Finally, the remuneration for a private employment agency that successfully places a jobseeker in employment subject to social security contributions, based on an activation and placement voucher, will be increased by €500. While referring to its comments on the application of the Employment Service Convention, 1948 (No. 88), with respect to the cooperation between private employment agencies and the public employment service, the Committee requests the Government to continue to provide information on the impact of the programmes and services delivered by the public employment service to attain the objectives specified in Article 1 of the Convention.

Young persons. The Committee notes that the number of unemployed young people aged 15–25 was approximately 227,000 in 2021 and 203,000 in 2022, falling below pre-pandemic levels. The number of unemployed people aged 15–25 stood at 215,000 in May 2023, an increase of 20.8 per cent compared to the same month last year, mainly constituted of refugees from Ukraine. Despite recent increases, Germany’s youth unemployment rate remains the lowest in Europe at an average of 6 per cent in 2022 (EU average at 14.5 per cent). In response to the Committee’s previous comments on this point, the Government indicates that Germany has a comprehensive range of measures to prepare individuals for training and support dual vocational training. On 29 March 2023, the Federal Cabinet adopted the draft Act to Strengthen the Promotion of Education and Training (also known as the Continuing Education Act), which was later adopted by Parliament (Bundestag). The Continuing Education Act aims to enhance funding instruments for labour market policy, counter unemployment from structural changes, and secure the skilled labour base. In order to give young people without a vocational qualification access to fully qualifying vocational training (preferably in-company training), a training guarantee is to be introduced. The overall concept for the training guarantee includes strengthening career guidance, encouraging mobility, and promoting assisted training.

The Committee notes the observations of the DGB indicating that the training company rate has been declining, down to 19.1 per cent. In 2022, 239,000 young people participated in pre-vocational training programmes. A record 2.64 million young people aged 20 to 34 lack professional qualifications. The DGB calls for a pay-as-you-go apprenticeship guarantee to provide vocational qualifications to all young people without absolving companies of their responsibilities. In its observations, the DGB acknowledges the Government’s response to structural changes in the labour market, driven by digitalisation, decarbonization and demographics, and supports new measures to strengthen training and further education. Significant reforms in the areas of further training and the Vocational Training Guarantee will be gradually introduced by 1 April 2024 and 1 August 2024. The DGB views the introduction of a training allowance positively, as it provides a collective instrument for workplace parties and the social partners to secure jobs and to drive necessary qualifications. The law, however, leaves a large gap in funding for self-initiated further training. The Committee requests the Government to continue to provide information, including disaggregated data by sex and age, on the impact of measures taken to promote employment of young people, and more specifically the impact of vocational training measures on youth employment. It also requests that the Government continue to provide youth employment and unemployment statistics by sex, age and region of the country.

Refugees. The Government indicates that the programme entitled “Integration through Qualification (IQ) - ESF training and qualification within the context of the Recognition Act” ran from 2014 to 30 April 2023 and was implemented in two funding rounds. Project networks were funded to support the integration of individuals with migration backgrounds in line with their qualifications from 1 January 2015 to 31 December 2018 and from 1 January 2019 to 31 December 2022. Approximately 390,000 people received less than 8 hours of counselling from the Recognition and Qualification Advisory Service on using their qualifications in the German labour market. Since 2019, 52,400 third-country nationals have received advice on labour and social law issues arising from employment relationships, including issues such as unpaid wages and the minimum wage. During the funding period, a total of 33,747 participants engaged in primarily individually tailored qualification measures (90 per cent of which involved individual coaching, and 10 per cent group coaching). Of these, 74.9 per cent achieved equivalence of their foreign qualifications or met requirements for entry into the labour market in line with their qualifications. In response to the Committee’s previous comment, the Government indicates that the scientific evaluation of the labour market integration measures for refugees was completed at the end of 2021. The results have been published and conclude that the majority of active labour market policy instruments significantly increase labour market success among refugees. The Committee welcomes the information provided and requests the Government to continue to provide details on the measures taken to improve the labour market situation for individuals that encounter difficulties in entering and remaining in the labour market, in particular Ukrainian refugees arriving in Germany.

“Mini-jobs”. In response to the Committee’s previous comments, the Government indicates that the Act on the Increase of Protection through the Statutory Minimum Wage and on Changes in the Area of Marginal Employment implemented two provisions on 1 October 2022. These include an increase in the general minimum wage to €12 per hour and a rise in the upper earnings limit for marginal employment (“mini-jobs”) from €450 to €520, and allowing it to increase alongside the minimum wage in the future. This change ensures that mini-job workers can maintain a constant maximum work schedule of ten hours per week, even if the minimum wage increases. The further expansion of the transitional area aims to incentivise workers to take up employment subject to social security contributions. The previous jump in social security contribution amounts has been eliminated, creating a greater incentive for workers to be gainfully employed above the mini-job’s upper earnings limit. The maximum earnings threshold for employment in the transitional area was increased from €1,300 per month to €1,600 and has – as of 1 January 2023 – been increased to €2,000. The Committee notes from the May 2023 OECD Economic Survey on Germany that more than 7 million workers or about one sixth of the workforce are currently working in mini-jobs, 4 million of which have no other regular job, while more than 65 per cent are women. It also notes that mini-jobs are most prevalent in hospitality, retail and domestic services. The Committee requests the Government to continue to provide information on the impact of measures developed and implemented, in consultation with the social partners, to promote lasting regular employment for “mini-job” workers.