In this the run-up to the summer, SPD Social Affairs and Employment Minister Hubertus Heil has presented two projects addressing key SPD-backed election campaign issues. Re-iterating that the unemployment insurance system was running a surplus, on 30 May the Minister announced the determination to launch a major ‘offensive promoting life-long training’ that would be primarily funded by the Federal Employment Agency. Two days later, the Minister also presented the major thrusts of a draft law aiming to provide subsidized employment to tens of thousands of long-term unemployed and create a ‘social employment market’. Both projects have caused controversy within the grand coalition.
Developing all employees’ competences. On 30 May while Hubertus Heil presented another record set of participation rates, he also indicated that the unemployment insurance system was running a significant surplus with reserves set to reach almost €20 billion by the end of 2018. Yet the Minister argues that despite Germany’s robust economy, some within the country still just cannot get a job. Furthermore the digital revolution is turning the labor market upside down. Citing a recent IAB institute study, the Minister warned that digitalisation and automation could impact one in four jobs in the years ahead and will necessitate ‘the systematic development of skills and competences for all employees.’
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