The Federal Labor Office of Germany expects a deficit of nearly 40 billion euros in 2026.

The management committee of the Federal Employment Agency in Germany approved the budget for 2026 on the 7th. Due to high unemployment rates and a continued sluggish economic situation, the Employment Agency expects a deficit of approximately 3.97 billion euros in 2026, including expenses for bankruptcy compensation and winter employment subsidies. This deficit will be covered by loans from the federal government.