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Federal agency spends record amount | Free Press

Short-term work, layoffs, fewer job offers – the Federal Employment Agency spends more money than usual during the crisis. However, this has no consequences for beneficiaries of benefits.

Nuremberg (dpa) – The Federal Employment Agency, which is under severe financial stress due to the Crown crisis, will spend a record sum of 62 billion euros this year.

This leads to a deficit of 27 billion euros, which will be offset by reserve funds and liquidity assistance from the federal government, CFO and board member Christiane Schönefeld said in Nuremberg on Friday.

Federal aid, currently granted as a € 7.2 billion loan, should be turned into a grant, Schönefeld said. The record spending of 23.5 billion euros was used mainly for unemployment benefits and more than 19 billion euros to finance part-time work. Despite the heavy burden, the Federal Agency is fully capable of acting. “Nobody has to worry about their performance,” Schönefeld said.

“The consequences of the crisis will continue in 2021, and we expect a considerable deficit,” he emphasized after preparing the budget for next year. In 2021, the federal government will have to help again with 3,200 million euros, the rest of the reserve of 6,000 million euros will also be budgeted. The goal is to move debt-free to budget year 2022. Final discussions on this are still pending.