A rule of thumb regarding the labor market's influence on startup activity is: the better the job prospects, the fewer people start businesses. Employment agencies should be particularly aware of this connection. We had the opportunity to speak with Wilfried Hüntelmann, the head of the Munich Employment Agency. Hüntelmann previously headed the employment agency in Göppingen.
You've been head of the Munich Employment Agency since September of last year. How does your work here differ from that in Göppingen?
The Munich Employment Agency is the second largest in Germany, and is located in a city with a population of one million. I see this as a special challenge—and an interesting one, by the way. Munich is one of Germany's most successful cities and is also considered one of the leading economic centers internationally.
The mix of large companies, medium-sized businesses, small startups and traditional craft businesses makes our work here very diverse and exciting.
Similar to the Stuttgart region, to which the Göppingen district belongs, is the very good labor market and the associated focus on securing skilled workers, training, and qualification. I wasn't bored there either.
Munich's startup scene is flourishing. What significance do young technology companies have for the job market in the city and region?
Technology startups are important for our labor market because they contribute to the dynamism of the business location. This, in turn, is good for Munich, as it attracts high-potentials and investors. Depending on the company's growth, personnel needs arise. I would then like to acquire these companies as customers.
“We should really use every option”
The unemployment rate in Munich is at a historically low level in May 2018 3.5 percent. How difficult is it for companies to find suitable staff?
Like elsewhere, many Munich companies are desperately seeking skilled workers. And the list is diverse. It's well known that these include nursing staff, IT specialists, and mechanical engineers, but there are also shortages in the catering industry, construction, and some skilled trades. We therefore try to train our customers where necessary, especially if they lack professional qualifications. There is also potential that we absolutely want to tap into: women returning from family leave, older people, the previously long-term unemployed, or even severely disabled people, who are often well-educated. We should truly utilize every option.
The start-up rate in Germany has been steadily declining for years. Is this related to the good employment opportunities?
Yes, the good job market typically plays a role here. Starting a business is always an individual decision, but people who value security, regular working hours, and vacation entitlement are currently more likely to opt for permanent employment than starting their own business.
Start-up grant and advice
How do you support people on their way to starting a business?
Anyone who becomes unemployed after employment subject to social insurance contributions and then wants to become self-employed can receive a so-called start-up grant.
The start-up grant is designed to help unemployed people launch their own business. It is paid out in two phases. During the first six months, the grant is equal to the most recently paid unemployment benefit plus €300 for social security contributions such as health insurance. In the second phase, the €300 can be granted for an additional nine months, provided that full-time entrepreneurial activity can be demonstrated.
In the 2017 fiscal year, we approved approximately 1,300 applications for start-up grants, almost utilizing our total budget of just under €15 million. We are investing a similar amount again this year.
In addition to financial support, it's important to develop a solid business plan and acquire other necessary knowledge: What are the responsibilities of an entrepreneur? What are my rights? What legal form should I choose for my business, and how can I best present my ideas to customers? Questions like these are answered in a startup seminar. Here, the client receives the necessary tools and can exchange ideas with like-minded people at these well-attended courses.
But before you decide to start your own business, it's best to seek comprehensive advice from us. Our experts analyze each case individually and plan the next steps together with you.
When people think of the employment agency, they often think of dusty file folders and outdated software. How digitally oriented is your organization?
It may be that such images still exist in some people's minds. What is clear, however, is that an incredible amount is happening in the field of digitalization, and a great deal has been accomplished at the Federal Employment Agency in recent years.
Our job board is our premium product, which has been around for a long time and is the largest job portal in Germany. Additional online services have been added. For example, you can register as a job seeker online. These services are gradually being expanded across all areas, with a focus on information and financial benefits.
Overall, we have already significantly expanded our offerings over the past year: We've achieved significant improvements, especially in terms of reach and usage rate. While our online offerings used to be more aligned with the structures of an administration, today our focus is on our customer needs. However, personal consulting remains our primary focus, which is important to me.
Thank you for the interview, Mr. Hüntelmann!
