Second job market

Definition / explanation

The term second labor market is understood to mean the hiring of workers financed by the general public (by the state) who cannot get a job without this help (public employment). The second labor market includes job creation measures (ABM), the establishment of employment companies and the so-called “one-euro jobs”.

Job creation measures

As a rule, the providers of the job creation measures are municipalities, charities or associations that receive wage and material cost subsidies from public funds for the provision of jobs. An ABM position is usually granted for up to a year.

Employees aged 55 and over can receive funding for up to three years. The funding must be in the public interest. That is why measures are promoted which contribute to the improvement of the economic, social and ecological structure of a region and enable unemployed people to maintain or regain their employability through temporary employment.

Employment companies

New companies can be set up as employment companies, which are run by the unemployed themselves, by associations, unions or municipalities. Employment companies offer gardening, repair and cleaning work or social services, for example. The removal of contaminated sites (such as soil remediation or the scrapping of old facilities) can also be carried out by employment companies. In doing so, they are dependent on financial subsidies from public budgets.

One-euro jobs

This is primarily an instrument for integrating the long-term unemployed into the primary labor market. One-euro jobs are non-profit activities free of social security contributions for charities or municipalities, whereby the providers undertake that no regular employment relationships are displaced in the course of these measures.

The aforementioned institutions create such jobs on their own and receive lump-sum subsidies from the Federal Employment Agency (BA). In addition to the flat-rate standard benefits and benefits for accommodation and heating, the unemployed are paid one to a maximum of two euros per hour for performing these jobs.

Unemployed persons who refuse a one-euro job can have their ALG II payments reduced. Anyone who works more than 15 hours a week in a one-euro job is no longer listed as unemployed in the statistics of the Federal Employment Agency.

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