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Germany Today

German news in English

Thursday, October 17, 2024

German Citizen's Income Program Falls Short of Goals

Published: 2024-07-18

Germany's new Bürgergeld (citizen's income) program, introduced in 2023 to replace Hartz IV, has failed to achieve its main objective of sustainable employment.

A special analysis by the Federal Employment Agency reveals that over half of the beneficiaries who found work returned to welfare within three months.

This 'revolving door effect' persists, with the success rate actually declining from 51% under Hartz IV to 49.2% under Bürgergeld.

The program, costing €42.6 billion in 2023, aimed to provide better support and training.

However, factors such as rising energy costs and increased part-time employment have contributed to its underwhelming performance.

The Labor Ministry cautions against overinterpreting the data, citing economic challenges and the recent implementation of some reforms.