The creation of part-time job opportunities with a low threshold and minimum salary, “Mini-jobs” and “Midi-jobs” (Hartz II).A grant for entrepreneurs, known as the “Ich-AG” (Me, Inc.), to encourage new businesses (Hartz II).The creation of Personal-Service-Agentur (PSAs) to act as agencies to place unemployed people with employers (Hartz I).After several amendments and its incorporation into Chancellor Schröder's Agenda 2010, it resulted in one of the most extensive social policy reforms in Germany since the Second World War.įollowing the Hartz Commission's recommendations, four Laws for Reform of the Job Market (or Hartz reforms) were enacted in stages between January 2003 (Hartz I) and January 2005 (Hartz IV). During summer 2002, the Hartz Commission drafted a report which was intended to propose a reorganisation of Germany's employment services. Hartz took on the role of head of the commission for modern services in the labour market, and soon became the strategic leader of the reforms, which led to the unofficial but widely used term, “Hartz reforms”. Schröder, the political head of the reform, commissioned Peter Hartz, Volkswagen's HR director, to design a set of policies that would, in the first instance, reform the German Federal Employment Agency, but would eventually result in the most comprehensive reform of the German labour market to date.
In 2002, the newly-elected Red-Green coalition government under Chancellor Schröder took action to tackle economic stagnation and rising unemployment rates in Germany.
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