Securing employment and preventing unemployment are core objectives of the Federal Ministry of Labour and Social Affairs' labour market policy.
Promoting employment is at the heart of the state’s labour market policy. Labour market policy is to contribute to high employment rates and an improved employment structure while taking into account the Federal Government's employment policy targets in the framework of social, economic and fiscal policies. Employment promotion is directed at countering unemployment from the outset, reducing the duration of unemployment and helping to balance supply and demand in the training system and labour market. Another goal is to enhance the employability of individual workers. Gender equality must be pursued as an integrated principle of employment promotion. Having a job not only means financial security: it strengthens independence and enables participation in social life.
Employment promotion is regulated in the Third Book of the Social Code (SGB III) and is often also referred to as unemployment insurance. In practice, employment promotion is implemented by the Federal Employment Agency located in Nuremberg and its employment agencies. A precise knowledge of current developments and trends in the labour market is necessary, as is good support for employed workers, job seekers and unemployed people.
There is a wide range of support measures not only for people at risk of unemployment or already unemployed, but also for young people who are at the beginning of their working life. The promotion of vocational training is a central component of labour market policy measures. The individual support measures of SGB III help people start work more quickly or start vocational training.
Employment promotion law is constantly under development, taking into account current and future labour market challenges, such as demographic and structural change and digital transformation. One of the main challenges is to continuously adapt the skills and qualifications of workers and jobseekers to a changing labour market. Training in the field the digital transformation is becoming a prerequisite for the success of individuals in the labour market and for the competitiveness of companies. To secure employment and prevent unemployment, the Federal Ministry of Labour and Social Affairs avails itself of the instruments of active labour market policies. These include placement in work and training, the short-time work allowance, continuing education and training, the integration allowance for employers, the start-up allowance and the support allowances for people with disabilities. Another of the Federal Ministry of Labour and Social Affairs’ main tasks in the field of labour market policy is to provide financial security in the event of job loss through unemployment insurance (unemployment benefits) and to provide the minimum needed to participate in culture and society through basic income support for jobseekers (unemployment benefit II).
Social Security at a Glance - Total Summary [PDF, 996KB] > Chapter: Employment promotion > page 23 ff.