The so-called “Bürgelgeld” is an amount of money provided to people who are currently unemployed . Starting January 1st 2024, this sum will rise to about 12% for the almost 5.5 million people in Germany receiving the social benefit. The rise was set in motion due to a sharp rise in consumer prices, partially caused by the war between Ukraine and Russia.
This gives rise to various questions as individuals are asking themselves whether it is necessary to take on a job and go to work, if in some cases they could receive more money from just obtaining the Bürgergeld. Now the German government is claiming that it is still worth it to go to work owing to the fact that singles can earn up to 532 euros more by working than getting the Bürgergeld. Yet, many employers are starting to worry, considering the surge in unemployment rates which could now lead to even more unemployment and negatively affect the German economy. The new rule met criticism from CDU-politician Jens Spahn, protesting that an increase sends out “wrong signals” to those willing to work. On the other hand, various social associations in Germany are welcoming the increase, but some criticized it as too low. As of right now, 5.5 million people receive the social benefit, including 1.68 million who are unemployed.
However, it is still in question how the public will develop and also how the several stakeholders will be affected. Employers of big companies, restaurants and even small businesses are constantly looking for people to hire and this is also noticeable on a visit to the local mall, where “We are Hiring” flyers are found on almost every window. Whereas consumers will want to increase their spending, producers will have to cut down on theirs due to the limited number of workers. The education system in Germany is also facing a tremendous issue: less and less university students decide on a career in education since wages in this field are low, and this is reflected in schools where most classes are canceled when a teacher is absent or sick.
Social minister Heil says that the social benefit does not support the balance between economic and social growth which is essential for an economy that is constantly driving forward. The critique is not entirely unjustified, and it can only be speculated whether some people might decide to quit their jobs and instead obtain the social benefit. Nonetheless, it must be noted that being occupied in a place that one enjoys is a potential advantage of working and must be kept in mind when deciding on one’s career path.
