(de-news.net) – The Confederation of German Employers’ Associations (BDA) has issued a renewed call for decisive action in the ongoing debate surrounding welfare state reform. BDA Chief Executive Officer Steffen Kampeter emphasized the necessity of a more targeted welfare system, warning that continued political inaction could foster populist sentiment. Kampeter advocated for a reduction in social insurance contributions to alleviate burdens on both employers and employees, and criticized procedural delays caused by what he termed “superfluous commissions.”
In contrast, Britta Haßelmann, co-leader of the Green Party, cautioned against indiscriminate cuts to welfare provisions. She argued that improving living conditions should take precedence over altering citizens’ income levels or increasing the retirement age. According to Haßelmann, enhancing social infrastructure would reduce long-term dependency on welfare benefits.
Amid rising costs and fiscal constraints, the CDU/CSU and SPD have agreed upon proposals aimed at restructuring key components of the social insurance system. This includes health insurance, pension schemes, and citizen income.
Meanwhile, Germany’s labor market has shown signs of strain. In August 2025, the number of unemployed individuals rose by 153,000 year-on-year, reaching 3.025 million—the highest figure since February 2015. Although seasonally adjusted data indicated a modest decline of 9,000 from the previous month, the overall increase of 46,000 compared to July pushed the unemployment rate to 6.4%. Federal Employment Agency (BA) Chief Andrea Nahles (SPD) attributed the uptick to seasonal factors and continued economic stagnation.
Underemployment, encompassing short-term illness and participation in labor market policy measures, rose by 25,000 to 3.634 million. The BA-X labor market index remained unchanged at 98, marking an eight-point decline from the previous year. Job vacancies fell to 631,000. Concurrently, the number of individuals receiving unemployment benefits increased to 1.019 million, while those receiving citizen income declined to 3.901 million, representing 7.1% of the working-age population.
Since October 2024, approximately 430,000 individuals have registered for vocational training programs, yet 98,000 positions remain without placement. The number of available training slots dropped to 477,000, leaving 129,000 unfilled.
Labor Minister Bärbel Bas (SPD) called for increased investment in response to global economic instability. On the other hand, Employer President Rainer Dulger reiterated the urgency of reform, advocating for measures to safeguard the welfare state and reduce benefits for individuals who decline suitable employment opportunities.
As of July 2025, Germany’s workforce numbered approximately 45.8 million. Following declines in May and June, seasonally adjusted employment figures remained largely stable, with an increase of 4,000 from June. Unadjusted data showed a decrease of 44,000 (-0.1%), consistent with seasonal norms. Employment levels have remained steady for three consecutive months, aligning with figures recorded in July 2024.
