Job market - Rhine Region: Citizens' Income Leads to a Rise in Demand for Skilled Workers' personnel
As the number of people receiving social welfare increases, Hesse's Prime Minister, Boris Rhein (CDU), has cautioned about the potential repercussions on the labor market. He spoke to the German Press Agency in Wiesbaden and emphasized that "Social welfare is a key factor contributing to the skilled labor shortage and the labor market crisis plaguing our economy." Rhein advocates for promoting employment rather than rewarding unemployment.
"Germany needs to reintroduce a positive performance culture," he added. "We should appreciate work performance, life performance, entrepreneurial performance, and even integration performance." According to Rhein, an excessive reliance on social welfare threatens to turn the country into a disincentive for hard-working individuals who contribute to society daily.
In May, there were approximately 4.021 million employable social welfare recipients, an 82,000 increase from May 2023 prior to the reform, as reported by the Federal Employment Agency. The social welfare system replaced Hartz IV in January 2023, designed to foster permanent job placements rather than temporary helper positions.
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- Boris Rhine, the CDU leader in Hesse, expressed concerns about the impact of rising social welfare recipients on the Rhine Region's labor market.
- Rhine pointed out that social welfare contributes to the skills shortage and labor market crisis in the Rhine Region, urging for an emphasis on employment rather than rewards for unemployment.
- In his conversation with the German Press Agency in Wiesbaden, Rhine advocated for a return to a positive performance culture, appreciating work, life, entrepreneurial, and integration achievements.
- The social welfare reform implemented in January 2023, replacing Hartz IV, reportedly led to an 82,000 increase in employable social welfare recipients in May, according to the Federal Employment Agency data in Hesse.
- As Rhine emphasized, an excessive reliance on social welfare may result in turning Germany into a disincentive for hard-working individuals who contribute daily to society, affecting areas such as Hesse and the Rhine Region.