The Labor Market Assistance System (AMAS) has been a topic of controversy since its introduction. Originally, the system was intended to divide unemployed individuals into three categories with high, medium, and low labor market opportunities using a computer algorithm. The goal was to allocate funding measures more efficiently, with a focus on providing the most support to those with medium labor market prospects. However, concerns about the use of personal data in the algorithm led to its being stopped by the data protection authority in August 2020.
The decision was eventually overturned by the Federal Administrative Court, leading to a recent judgment by the Administrative Court. This ruling confirmed that the algorithm is in the “significant public interest,” which is a prerequisite for justifying its use. However, it also highlighted a controversial issue: whether profiling based on AMS advisors’ decisions about job seekers’ assignments is admissible. This question will be clarified through a new procedure, as it remains unclear when and in what form the program could be used.
The current situation leaves uncertainty regarding when and how AMAS would be implemented nationwide as planned at the beginning of 2021. The AMS is currently reviewing the decision made by the court to determine their next steps in implementing this system.