Unemployment is rising in Germany. The problems affected the intermediary himself

According to the latest data provided by the Federal Employment Agency, the unemployment rate in Germany has exceeded the three million mark. Experts emphasize that the labor market of our western neighbors is affected by the situation in the global economy, including high energy prices due to the prolonged war in the Middle East.

The labor market in Germany is in trouble. An intermediary with problems

In recent days, the German media have reported on the difficult financial situation of the Federal Employment Agency itself.

The agency, which used a significant part of its multi-billion reserves during the COVID-19 pandemic mainly to finance short-time work benefits, projects a deficit of EUR 10 billion for 2026.

The solution to improving the institution’s budget is to be changes in unemployment benefit payments. Some political and economic circles support limiting the time for receiving benefits. The changes would apply to older people who are unemployed. The length of time you receive unemployment benefits in Germany depends on your age. People under 50 can receive it for a maximum of 12 months, after which they transfer to the basic social security system. With age, this period lengthens and for people over 58 years of age it may be a maximum of 24 months.

From a recent report prepared by HR WORKS, we learn how German employers part with their employees. It turns out that more than a quarter of those dismissed learned about their boss’s decision without any prior warning, appraisal interview or other warning signal. The termination meeting itself usually lasted very short. As much as 40 percent employees left the office after just five minutes, and 53 percent the talks were only of a formal nature.

Severance pay is becoming less and less standard. 47% did not receive any financial compensation. dismissed, and in small enterprises this percentage was 60%.