Federal funding cuts hit MainArbeit particularly hard

The federal government is cutting funding for job centers in 2025, even though personnel, rent and energy costs have risen. The municipal job center in Offenbach, MainArbeit, will therefore only be able to fulfil existing contracts for active employment promotion in the coming year. According to current plans, there will not be enough money for new support measures. "This has never happened before in the 20 years since job centers have existed," explains City Treasurer and Head of Social Affairs Martin Wilhelm. "This year, MainArbeit will only have around 6 million euros at its disposal, compared to 9.3 million euros in 2023. In 2025, 2.3 million euros will remain for the so-called integration title."

The underfunding affects all job centers nationwide, which is why all federal states and municipal umbrella organizations have already warned in a joint statement that the job centers will only be able to fulfill the statutory tasks and objectives of the Citizens' Benefits Act to a limited extent.

In 2024, MainArbeit was still able to maintain its program of measures carried out by external providers for a wide range of target groups, partly due to staff cuts, but only with a reduced number of places. In 2025, the municipal job center will not be able to commission any new support measures despite further savings. "Many people entitled to benefits need individualized, professional help, be it due to a lack of language skills, a lack of school and training qualifications or health restrictions. Over the years, the range of services has been adapted to meet demand and the providers have built up appropriate structures, which are now under threat," says Susanne Pfau, Managing Director of MainArbeit.

In 2023, 7,300 people could still be supported, whereas this year the figure is around 5,800. In 2025, only 2,300 people will still be able to benefit. That is 5,000 fewer people than in 2023 who can be made fit for the labor market.

In concrete terms, this means that instead of 500 young people who are not yet ready for training after leaving school, only 100 young people will receive the necessary support. Be it through vocational preparation, external training places or tutoring for trainees who are completing an apprenticeship in a company,

So far, 1,400 adults have been supported with basic German courses, additional and non-profit work opportunities, vocational preparation measures for parents and coaching for the long-term unemployed. In the coming year, only 140 people will be able to benefit from this. Targeted preparation for the labor market for women and single parents is also affected. In 2023, 157 women and single parents were supported primarily with measures offering childcare. In 2025, there will still be 40. There will no longer be any federally funded advice services for people with health problems, addiction problems or homeless people.

Susanne Pfau, Managing Director of MainArbeit, says: "We have informed the providers about this dramatic development. Some providers have already informed us that the 26 advisors who are currently helping people looking for work to find their way into the job market may have to look for a new job themselves in 2025."

It is to be expected that unemployment in Offenbach will increase. Costs will also rise if fewer people find a suitable job and continue to be dependent on citizen's benefits.

"Last year, our unanimous appeals to federal politicians resulted in the job centers retaining responsibility for young people and additional budget funds being approved. I will continue to use all the means at my disposal to ensure that MainArbeit receives sufficient resources to successfully advise and integrate people with a high need for advice, such as people who are distant from the labor market or people with limited language skills, and to integrate them into work. The support structure in Offenbach is also important and must be maintained," emphasizes Martin Wilhelm. "The federal and state governments are making savings in the wrong place. If we don't provide people with adequate support on their path to work, it will cost us much more in the long term."