3.6 Integration of young people in the labour market
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IJAB – International Youth Service of the Federal Republic of Germany
Godesberger Allee 142-148
DE-53175 Bonn
Tel: +49 228 9506-141
E-Mail: info@ijab.de
Website
On this page
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Youth employment measures
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Flexicurity measures focusing on young people
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Reconciliation of private and working life for young people
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Funding of existing schemes/initiatives
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Quality assurance
Youth employment measures
Germany has a wide range of labour market policy instruments that can be used to implement the key recommendations of the EU Youth Guarantee. See also the National Implementation Plan to Establish the EU Youth Guarantee in Germany, which was approved by the German Federal cabinet on 8 April 2014, and the assessment of the Youth Guarantee implementation in Germany (January 2020). The Plan describes existing services available in the area of education, employment and training that promote and improve the integration of young people into the labour market. On 1 July 2020, the European Commission put forward a proposal to reinforce the Youth Guarantee, which was unanimously approved by the Member States. Compared to the 2013 recommendation, the revised Youth Guarantee extends the age limit from under 25 to 29 years to enable more young people to benefit from the scheme. Another new aspect is the focus on especially vulnerable young people, such as those with disabilities, members of minority groups or those living in remote rural areas or deprived neighbourhoods.
The Federal Employment Agency (Bundesagentur für Arbeit, BA) plays a key role in implementing labour market instruments at national level. The regional employment agencies are required under Section 37 of Book 3 of the Social Code (Sozialgesetzbuch Drittes Buch, SGB III) to conclude an integration agreement (Eingliederungsvereinbarung) with young people seeking vocational training or employment. This agreement must be reviewed after three months. The same applies to the job centres; they too conclude an integration agreement (Eingliederungsvereinbarung) with young people who receive basic income benefits for job seekers (Bürgergeld). The integration agreement details the integration goal, the placement efforts of employment agencies, evidence of the young person's own efforts and any planned employment support measures. On this basis, young unemployed people aged 25 or under who receive basic income benefits for job seekers, take priority when vocational training places or jobs are awarded. To help integrate young people into training programmes and the labour market, employment agencies and job centres can use the support measures described in Book 2 of the Social Code, listed in section 3.5 "Traineeships and apprenticeships" of the chapter Employment & Entrepreneurship. Young people receiving benefits under SGB II can also use the support instruments of community service jobs (Arbeitsgelegenheiten) (according to Section 16d of Book 2 of the Social Code) as well as low-threshold care and support services (according to Section 16h of Book 2 of the Social Code).
Employers can receive a fixed-term integration subsidy (Eingliederungszuschuss) from the Federal Employment Agency or job centre to help cover wages if they fill a vacant position with applicants who are registered as unemployed or seeking work, or are receiving citizens' benefit (Bürgergeld). This subsidy is granted on the condition that the persons in question are initially expected to have reduced work capacity due to personal circumstances, such as health limitations or prolonged or repeated periods of unemployment, and that the integration subsidy can improve their chances of securing permanent employment. Young people with similar circumstances are also eligible for support through an integration subsidy. The Federal Employment Agency provides information about this funding option on its website.
A variety of ESF-supported programmes run by federal ministries and authorities also help promote the integration of young people into the labour market. The ESF programme brochure of BMAS contains an overview of the period 2021-2027.
Examples of the implementation of the European Social Fund at national level:
The Federal Ministry of Labour and Social Affairs (Bundesministerium für Arbeit and Soziales, BMAS):
- The programme WE – Networks integrating refugees into the regional labour market (WIR - Netzwerke integrieren Geflüchtete in den regionalen Arbeitsmarkt) aims to accommodate the specific needs of refugees in terms of their participation in the labour market in Germany. This programme prioritises persons with impairments or disabilities as well as those with secondary illnesses specific to their forced migration. The funding supports tailored measures aimed at integrating the target group into the labour market, for example by helping them (re-) start school to obtain a school-leaving certificate, or by supporting the transition from school to work. Other offers are designed to maintain, enhance and restore employability. The approach includes the long-term support and counselling of participants, even after they have started work or training. It also includes information events, awareness-raising measures and training for public administration institutions, businesses and other entities which have contact with the target group. Regional cooperation with businesses and vocational schools is also promoted. Funding is provided for project or cooperation alliances, i.e. networks in which relevant stakeholders are involved in the project work as cooperation or sub-project partners.
Federal Ministry for Education, Family Affairs, Senior Citizens, Women and Youth (Bundesministerium für Bildung, Familie, Senioren, Frauen und Jugend, BMBFSFJ)
- With the Strengthening Youth (JUGEND STÄRKEN) initiative (2022–2028), the Federal Ministry for Youth (Bundesjugendministerium) brings together programmes that help young people with fewer opportunities integrate into school, employment and society. The initiative aims to empower young people – regardless of their social or ethnic background – by developing their personal potential and guiding them towards independent lives. In light of demographic changes, a growing shortage of skilled workers and increasing social polarisation, this mission is becoming ever more important for sustaining an open and democratic society. The JUGEND STÄRKEN initiative includes programmes such as Youth Migration Services (Jugendmigrationsdienste), Respect Coaches (Respekt Coaches) and "Strengthening Youth: Bridges to Independence" (JUGEND STÄRKEN: Brücken in die Eigenständigkeit).
The JUGEND STÄRKEN initiatives aim to: - help disadvantaged young people with their educational, professional and social integration through individualised support and tailored assistance.
- promote intercultural skills and an understanding of democratic values, while supporting personal growth and skills development.
- establish sustainable structures that facilitate the integration of disadvantaged young people at local level, and to explore new forms of collaboration among stakeholders operating at the intersections of schools, vocational training institutions, the labour market and youth welfare services.
- intensify collaboration with the business community and entrepreneurs to facilitate access to vocational opportunities for disadvantaged young people.
For more details about information on employment opportunities and support services for young people, see Chapter 3.4 "Career guidance and counselling services".
Flexicurity measures focusing on young people
As an integrated strategy for enhancing both flexibility and security in the labour market, flexicurity aims to reconcile employers' needs for a flexible workforce with workers' requirements for job security. There are no specific flexible employment schemes for young people.
Relevant legal frameworks are: the Act on the Implementation of Measures of Occupational Safety and Health to Encourage Improvements in the Safety and Health Protection of Workers at Work (Arbeitsschutzgesetz), the Act on working hours (Arbeitszeitgesetz), the Act on parental allowance and parental leave (Gesetz zum Elterngeld und zur Elternzeit, the Young Persons (Protection of Employment) Act (Jugendarbeitsschutzgesetz), the Act on shop opening hours (Ladenschlussgesetz) and the Act on part-time employment and fixed-term employment contracts (Gesetz über Teilzeitarbeit und befristete Arbeitsverträge).
In addition to collectively agreed rules for certain professions or industries, specific topics and areas within a company are regulated by works agreements (Betriebsvereinbarungen). These also apply to the young people working at the company in question. Individual agreements regarding working hours are set out in the contract of employment.
Security as an essential element of flexicurity is also provided by entitlement to state benefits in the event of unemployment and need for assistance (Hilfebedürftigkeit). Young people are entitled to unemployment benefit (Arbeitslosengeld) if they meet the relevant requirements. From the age of 15, they can also apply for Citizen's benefit (Bürgergeld) to secure their livelihood, if they meet the relevant requirements, especially the need for assistance.
Under Germany's Upgrading Training Assistance Act (Gesetz zur Förderung der beruflichen Aufstiegsfortbildung), young people are also entitled to support provided they meet the relevant requirements.
Reconciliation of private and working life for young people
Germany's existing legislation and programmes to promote the reconciliation of personal and professional commitments also apply to young people. There are no programmes or initiatives to improve the reconciliation of private and working life specifically for young people.
Regarding their working hours, young apprentices/employees are covered by current regulatory and policy framework conditions and regulations. Section 7a of the Vocational Training Act (Berufsbildungsgesetz), which contains provisions on part-time vocational education and training, applies to young people undergoing vocational training. According to this Act, a reduction of the daily or weekly training time can be agreed for the entire training period or for a specific period in the vocational training agreement. The daily or weekly training time may not be reduced by more than 50%. The length of the part-time vocational training programme extends accordingly.
The possibility of completing vocational training on a part-time basis has been anchored in the Vocational Training Act (Berufsbildungsgesetz, BBiG) since 2005. This was extended at the beginning of 2020 to include all persons interested in vocational training. While part-time vocational training was aimed especially at people with family responsibilities prior to the amendment, the revision means this form of training is now open to all people. This opens up career opportunities for people who are unable to complete training on a full-time basis because of personal circumstances, for example because they have to learn German, have mental and physical limitations or participate in competitive sport. The option still applies to the existing target group of people with family and care responsibilities.
External vocational training (außerbetriebliche Berufsausbildung, BaE), funded by the Federal Employment Agency (Bundesgentur für Arbeit) under Section 76 of Book 3 of the Social Code (SGB III), can also be carried out on a part-time basis if there are important reasons for doing so (Special directives/Fachliche Weisungen BaE, p.15).
Some federal states also have appropriate support programmes that allow for vocational training to take place on a part-time basis, for example the programme "Part-time vocational training – Supporting entry into the labour market – Opening up perspectives" (Teilzeitberufsausbildung – Einstieg begleiten – Perspektiven öffnen, TEP) run by the Ministry of Labour, Health and Social Affairs of North Rhine-Westphalia (Ministerium für Arbeit, Gesundheit und Soziales des Landes NRW), funded by federal state funds and the European Social Fund. This enables persons with family responsibilities to undergo vocational education and training.
Young families or single parents can also use the different types of childcare or financial aid available if they meet the necessary criteria. Information about reconciling family and working life can be found on the Federal Employment Agency website (Bundesagentur für Arbeit).
The municipal youth welfare offices support care services in childcare facilities and day nurseries to improve the reconcilability of family and work commitments. The state parental allowance (Elterngeld) supports parents who are on lower incomes because they are temporarily working less or not at all after the birth of a child. The parental allowance helps to secure the family's financial livelihood. State support also makes it possible to reconcile flexible and reliable work time arrangements.
Funding of schemes/initiatives
Employment promotion measures are funded by the federal government and Länder ministries responsible for the measure or programme. In some cases, ESF funds are used.
The primary funding bodies at federal level are the Federal Ministry of Labour and Social Affairs (Bundesministerium für Arbeit und Soziales) and the Federal Ministry for Education, Family Affairs, Senior Citizens, Women and Youth (Bundesministerium für Bildung, Familie, Senioren, Frauen und Jugend). They use funds from the federal budget as approved for each fiscal year. In 2024, the federal government allocated a total of €4.15 billion to job centres for support measures through the so-called “integration budget” (Eingliederungstitel) – in addition to funding from the Federal Employment Agency (Bundesagentur für Arbeit, BA). For 2025, the Federal Employment Agency is planning to allocate €12.0 billion to active labour market policies (aktive Arbeitsförderung), up from approximately €10.4 billion in 2024. The proportion of these funds earmarked for the integration of young people is not specified.
A key source of funding for programmes and initiatives is also the European Social Fund. In Germany, the federal and state governments will receive a total of approximately €6.56 billion from ESF Plus during the 2021-2027 funding period. This makes ESF Plus a vital resource for supporting youth employment and training. Of this total budget, around €2.22 billion will go to the ESF Plus federal programme and approximately €4.34 billion to ESF Plus activities at the federal state level. Access to ESF Plus funds requires national co-financing, meaning that member states must cover part of the costs of funded projects themselves. At the federal level, the ESF Plus funding programmes are implemented nationally under the lead responsibility of the Federal Ministry of Labour and Social Affairs (Bundesministerium für Arbeit und Soziales), in cooperation with the Federal Ministry for Research, Technology and Space (Bundesministerium für Forschung, Technologie und Raumfahrt), the Federal Ministry of Education, Family Affairs, Senior Citizens, Women and Youth (Bundesministerium für Bildung, Familie, Senioren, Frauen und Jugend), the Federal Ministry of Economic Affairs and Energy (Bundesministerium für Wirtschaft und Energie) and the Federal Ministry for Housing, Urban Development and Building (Bundesministerium für Wohnen, Stadtentwicklung und Bauwesen). ESF Plus programmes at federal state level also take into account the specific labour market conditions of each region.
Quality assurance
As part of its quality assurance, the Federal Employment Agency (Bundesagentur für Arbeit) has a comprehensive monitoring system (Qualitätssicherung) in place for its funding programmes.
Quality assurance aims to improve and ensure the sustainable development of labour market services. Programme monitoring is carried out
- at the regional level by the specialists from the responsible employment agency
- by the regional procurement centres of the Federal Employment Agency, which are responsible for awarding labour market measures and
- by the labour market services audit unit of the Federal Employment Agency.
It compiles statistics on participation rates in vocational support schemes and certain participant characteristics, such as age, school and vocational education and length of unemployment. Outcomes are also documented, especially transitions to work, training and employment measures. The Federal Employment Agency's monitoring system is supplemented by online surveys of participants in career preparation schemes to obtain appropriate feedback on the schemes themselves.
The findings from the audit are documented and presented in audit reports. These reports summarise action required within the respective areas of evaluation.
A large number of programmes and schemes run by federal and regional ministries are systematically assessed and evaluated in Germany. Findings are used, among other things, to develop programmes further. The respective evaluation reports are usually available online.