• Sat. Feb 24th, 2024

AI-based Labor Market Assistance System Faces Legal Challenges: Can Profiling Job Seekers be Considered Public Interest?


Feb 13, 2024
More clarity required on contentious AMS algorithm

The Labor Market Assistance System (AMAS) was supposed to be introduced nationwide at the beginning of 2021. However, it was stopped in August 2020 by the data protection authority due to concerns about its admissibility. The decision was contested and eventually overturned by the Federal Administrative Court, leading to a recent judgment by the Administrative Court that has further complicated the matter.

The goal of AMAS was to divide unemployed people into three categories with high, medium, and low labor market opportunities using a computer algorithm. The algorithm was intended to help allocate funding measures more efficiently, with a focus on providing the most support to those with medium labor market prospects. However, it remains unclear when and in what form the program could be used as a result of the recent decision made by the Administrative Court.

According to recent reports, AMS employees’ decisions about assigning job seekers are largely determined by automatically calculated labor market opportunities. This raises questions about whether profiling is admissible under European Union law and whether it constitutes significant public interest. The Adm

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