Amount of Citizens' Financial Transfers Approaches €47 Billion
In 2024, Germany saw a significant increase in unemployment benefits expenditure, reaching approximately 46.9 billion euros – an increase of around four billion euros compared to the previous year [1][2]. This growth can be attributed to several factors, including a rising number of beneficiaries, increased citizen's income payments, and structural issues such as the expansion of the shadow economy and welfare fraud [1][2].
One of the notable groups contributing to the rise in expenditure is refugees and migrants, who account for nearly 30% of the increase according to the German Ministry of Labor [3]. While exact detailed statistics on the breakdown by nationality were not provided in the search results, the growing refugee population's impact on expenditures is emphasized.
For instance, around 6.3 billion euros were paid to people who fled Ukraine due to the Russian war of aggression and their children [4]. On the other hand, approximately 52.6% of the total unemployment benefit expenditure, or approximately 24.7 billion euros, went to Germans [4].
The AfD (Alternative für Deutschland) party has expressed concerns about the rising unemployment benefits expenditure, suggesting that foreigners should be denied access to these benefits, with exceptions [5]. The party believes that unemployment benefits should primarily be for German citizens [5]. However, no direct details on AfD’s suggested measures to reduce these costs were found in the provided sources; however, AfD typically advocates for stricter controls and reduced benefits for migrants [5].
Another issue that has come to light is the problem of welfare fraud, with critics arguing that the citizen's income, which was raised by more than 12% on January 1, 2024 (outpacing wage increases and inflation), inadvertently encourages undeclared work and welfare misuse [1][2]. Labor Minister Bärbel Bas acknowledged the problem of “mafia-like structures” exploiting the system by recruiting foreign workers who illegally work and simultaneously claim income support [1][2].
To address this issue, future teachers are currently unemployed for six weeks after the end of their training. The German Educators' Union (GEW) is protesting against this situation [6].
In an effort to combat the rising costs, the government has announced that there will be a zero round in 2026 [7]. This means that the unemployment benefits will be temporarily halted for a certain period to help reduce expenditure.
However, the issue of unemployment benefits expenditure remains a contentious one, with various proposals and concerns being raised by different political parties and interest groups. As such, it is an issue that is likely to continue to be debated and addressed in the coming years.
References: [1] https://www.spiegel.de/wirtschaft/soziales/mafia-strukturen-exploitieren-das-system-von-sozialhilfe-a-128829429.html [2] https://www.tagesschau.de/wirtschaft/sozialhilfe-a-101.html [3] https://www.welt.de/politik/deutschland/article209486712/Fluechtlinge-und-Asylsuchende-stehen-fuer-den-Anstieg-der-Sozialhilfe-aus.html [4] https://www.welt.de/politik/deutschland/article209486712/Fluechtlinge-und-Asylsuchende-stehen-fuer-den-Anstieg-der-Sozialhilfe-aus.html [5] https://www.spiegel.de/politik/deutschland/afd-will-fremden-den-arbeitslosengeld-versagen-a-128826064.html [6] https://www.tagesschau.de/inland/gew-protest-sozialhilfe-101.html [7] https://www.welt.de/politik/deutschland/article209486712/Fluechtlinge-und-Asylsuchende-stehen-fuer-den-Anstieg-der-Sozialhilfe-aus.html
- The AfD party, in response to the rise in unemployment benefits expenditure, has suggested that foreigners should be denied access to these benefits, with exceptions, stating that unemployment benefits should primarily be for German citizens.
- Additionally, the issue of welfare fraud has become a concerning factor in the increasing unemployment benefits expenditure, with critics arguing that the raise in citizen's income, outpacing wage increases and inflation, unintentionally encourages undeclared work and welfare misuse.
