More clarity required on contentious AMS algorithm

The Labor Market Assistance System (AMAS) was supposed to be introduced nationwide at the beginning of 2021, but was stopped in August 2020 by the data protection authority. This decision was contested and eventually overturned by the Federal Administrative Court, leading to a recent judgment by the Administrative Court. However, the admissibility procedure regarding the disputed AMS algorithm is expected to take even longer due to a recent decision made by the Administrative Court. The Court sees a need for further clarification of the matter.

The main question is whether the digital tool intended to determine the labor market prospects of the unemployed would significantly influence the decisions of AMS personnel. This has been under scrutiny for almost three years. Specifically, it is controversial whether or not AMS employees’ decisions about job seekers are largely determined by automatically calculated labor market opportunities, which constitutes “profiling.” Whether or not this profiling is admissible will depend on these factors and must be clarified through a new procedure.

The intention of AMAS was to divide unemployed people 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 support to those with medium labor market prospects. However, it remains unclear when and in what form this program could be used after being stopped due to concerns about data protection. The AMS is currently examining the decision in detail and considering its next steps before proceeding with implementation of this program again.

By Editor

Leave a Reply