Most unemployed find new job without help from employment agency

The BA has "hardly any part in successful job search", reports the Institute for Educational and Social Policy

One of the main tasks of the Federal Employment Agency is, of course, the "placement in apprenticeships and jobs". But as the Institute for Education and Social Policy (ibus) at the Koblenz University of Applied Sciences reports in the "O-Ton labor market" reports, success in this task is rather modest. O-Ton-Arbeitsmarkt sees itself as an "alternative to official labor market reporting".

Based on the evaluation of statistics of the Federal Agency on the "successful employment" (March 2015), the Institute comes to the surprising conclusion that the vast majority of unemployed people have found a new job on their own and without help: "In 74 percent of the cases, the job is found on their own." There seems to be a discrepancy between asking for and getting help.

Most unemployed find a new job without help from the employment agency

Headquarters of the Federal Employment Agency (BA). Image: BA

Between April 2014 and March 2015, for example, seven percent of the unemployed registered with the employment agency found a job each month. 77.8 percent found a job without the BA’s help, 9.2 percent through placement without a claim, 9.9 percent after participating in an acceptance program within three months, 1.3 percent with an accompanying claim, and 0.8 percent through placement with a claim. The short-term unemployed were significantly more successful and less dependent on the BA than the long-term unemployed.

78 percent of the short-term unemployed had found a job themselves without any demand from the BA, in 45 percent already after the so-called initial contact, i.e. the notification to the BA that the employment contract had been terminated in order to claim unemployment benefits, in 33 percent after the conclusion of an integration agreement, i.e. the contract between the BA and the jobseeker on what services the BA will provide and what the jobseeker is obligated to do for this purpose. Only 22 percent were helped. 10 percent found a new job through a tip from the employment agency, 2 percent through subsidies from the BA, and 10 percent as a result of participation in a labor market policy measure in the previous three months. Whether participation helped in finding the job, however, can only be conjectured, writes the institute.

Even among the long-term unemployed, who have a much harder time on the labor market, the majority (58 percent) found a job without help from the BA, usually after signing an integration agreement. However, in the year statistically evaluated, only 2 percent of the long-term unemployed found a job. At least, according to the institute, there were percent "verifiable activities" of the BA. 19 percent found a job after a reduction, 14 percent through BA mediation and 9 percent through job subsidies.

It is possible, of course, that the conclusion of an integration agreement together with the "potential analysis" motivating effect or offers assistance, thus already as first step of the demand could be regarded. In addition it could fit that with those, which could make themselves independent, this took place with 31,1 per cent after the first contact, but with 41,1 per cent after potential analysis and integration agreement. And in the case of the self-employed, the Labor Office also seems to be more successful in helping them: 23.1 percent find self-employment after an accompanying demand, and 4.2 percent after an acceptance.

Regarding the category of those who found a job after initial contact (some even before becoming unemployed because they had already found a follow-up job), the BA writes that while it did not demonstrably help, the information services or online job board may have played a role in the success:

After initial contact, if applicable. with the help of information, counseling or online JOBBoRSE: Even without the conclusion of a formal integration agreement, without a demand and without placement after selection and proposal, information and counseling services are available to unemployed and non-unemployed jobseekers, especially the JOBBoRSE. Statistical proof of the actual provision of such services by the employment agency or job center can be provided in individual cases, however. the job center cannot be provided in individual cases.

According to the BA’s latest figures from February 2015, which were also evaluated by O-Ton-Arbeitsmerkt, there were officially 3.017.003 unemployed, but a total of 7.105.233 benefit recipients: "Around 1.1 million people received unemployment benefit I and around 4.4 million people and their more than 1.7 million children under the age of 15 were dependent on Hartz IV benefits or social welfare benefit." More than half of working Hartz IV recipients are not counted as unemployed.

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