Public Programme Improves Social Integration of the Long-Term Unemployed

The public programme “Soziale Teilhabe am Arbeitsmarkt” (“Social Inclusion in the Labour Market”) has increased the level of social integration among long-term unemployed individuals in Germany. Most participants in the programme are older people who had been receiving government benefits for nine years on average. These are the results of the second interim report on the evaluation of the government programme which was compiled by a research consortium including the Centre for European Economic Research (ZEW), Mannheim, on behalf of the Federal Ministry of Labour and Social Affairs (BMAS).

Within the framework of the interim report, ZEW researchers evaluated the short-term effects of the programme on the basis of official data from the Federal Employment Agency, as well as survey data of the participants and their controls. The microeconometric findings shed some new light on the socio-demographic characteristics of the individuals participating in the programme and their employment history, as well as on the direct impact of the programme. On average, those who were placed in publicly-funded employment as part of the programme “Social Inclusion in the Labour Market” between November 2015 and July 2016 were 48.5 years old, and had been receiving unemployment benefits according to the German Social Code (SGB II) for nine years before entering the programme. Around 25 per cent of the participants were living in households with at least one minor child. Before joining the programme, the participants had been working in regular jobs in which they were liable to social security contributions for an average of merely 6.1 years.

In the study, ZEW researchers were able to assess some initial short-term effects of the programme on the basis of survey data on participants and comparable control persons. In relation to the control group, the participants reported to have experienced higher scores on life satisfaction, consumption, professional and social networks, and social recognition. The fact of having an employment contract, including the right to have holidays and a pension insurance in addition to the relatively long duration of the contract seems to be reason for the significantly positive impact of the programme. The programme has, however, not yet increased other dimensions of being socially integrated like the confidence in public authorities.

Meaningful and responsible tasks facilitate social inclusion

“According to our analysis, the programme improved relevant dimensions of social integration for the participants in the short run. Besides the additional income and longer contractual periods, another reason for the programme’s positive impact seems to be that participants once again have the chance to perform meaningful and responsible tasks,” says PD Dr. Friedhelm Pfeiffer, deputy head of the ZEW Research Department “Labour Markets, Human Resources and Social Policy” and co-author of the research report.

The government programme “Social Inclusion” was launched in 2016 and will run until the end of 2018. By July 2017, around 15,000 individuals had been placed in publicly-funded employment in approximately half of the job centres in Germany.  The goal of the programme is to increase social inclusion through employment opportunities and facilitate market access for those who have been receiving social benefits according to the SGB II for at least four years. The programme especially targets long-term unemployed individuals who are either suffering from health problems or living in households with minor children (or both).

For more information please contact:

PD Dr. Friedhelm Pfeiffer Phone +49(0)621/1235-150, E-mail friedhelm.pfeiffer@zew.de