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Labour Market Policy

Particular attention is paid to the impact on labour market integration, employability and social inclusion. Research covers advisory, support and placement processes, earnings replacement benefits and the support instruments of labour market policy, including vocational preparation schemes, publicly funded employment, continuing professional development (CPD) and assistance with integration. The analyses take into account current social developments and labour market policy reforms. They look at benefit recipients and unemployed or employed people as individuals while also considering gender aspects and their respective family situations.

In this context, the IAB also looks into how key players act and interact, such as job centres, benefit recipients, companies, employment agencies and the staff who work there, and the institutions tasked with providing supporting measures. The research is based on the quantitative analysis of process and survey data (such as non-experimental, econometric impact analyses or field experiments) and on qualitative analyses (such as non-standardised surveys or participant observations). While quantitative research primarily determines the impact of various instruments, qualitative research investigates the implementation of labour market policy and the mechanisms through which it takes effect.

In 2026, the focus area will examine, across SGB II and III, impacts on the effectiveness of subsidised CPD of the COVID pandemic and of the move to online courses. A survey of people taking subsidised training course modules will establish what participants expect from the training, and whether they intend to take additional modules. In the context of SGB III, research will examine the extent to which advisory and placement processes and the schemes available to older jobseekers are able to address the specific issues they face. Particular attention will be paid to the establishment, functioning, conditions and success of labour market hubs, which will be examined using case studies and data analysis. A scientific evaluation of adjustments to employee-oriented job placement is currently being reviewed with the implementation project of the Federal Employment Agency’s ‘Future Project Operational’ (Zukunftsprojekt Operativ [ZuPo]).

Research on SGB II in 2026 will focus on reforms to citizen’s benefit, advisory support, and sanctions. The cooperation plan will be examined as part of a qualitative study. Research into employment-focused case management in 2026 will analyse the number and structure of benefit claimants capable of gainful employment who have been referred to case management. Sanctions will also be analysed, along with the short-term effects of the November 2019 Constitutional Court judgment on employment transitions of benefit claimants capable of gainful employment. The IAB will use its OnJoB Panel to survey job centre employees on topics such as how they assess the transfer of funding for SGB II clients participating in vocational training to the SGB III system.

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