Germany has two separate agencies dealing with unemployment, and they serve different populations. The distinction is frequently confused by newcomers. Here is how they differ.
Bundesagentur für Arbeit (Arbeitsagentur)
The Federal Employment Agency handles Arbeitslosengeld I (ALG I) — unemployment benefit for people who have made sufficient contributions to the unemployment insurance system (at least 12 months of contributions in the last 30 months). ALG I pays 60–67% of your previous net income for up to 24 months (depending on your contribution history and age). To claim ALG I: you must have been employed and contributing to unemployment insurance, register as unemployed at the Arbeitsagentur before your employment ends, and meet the availability requirement (you must be available for work immediately). ALG I is a contributory benefit — you paid for it through your employment contributions.
Jobcenter (ALG II / Bürgergeld)
The Jobcenter handles Bürgergeld (formerly Arbeitslosengeld II / Hartz IV) — the basic income support for people who are unemployed and either have never worked (no ALG I entitlement), have exhausted their ALG I entitlement, or have very low ALG I that leaves them below the basic needs level. Bürgergeld is a means-tested benefit: your household income and assets are checked; amounts above a protected minimum must be used before Bürgergeld is paid. The 2024 standard rate: €563/month for a single adult, plus housing costs (actual rent + utilities, within limits). Bürgergeld is administered by Jobcenters (typically a joint entity of the Bundesagentur and the local municipality).
The Workflow
Typical sequence for someone who loses their job in Germany: 1) Contact Arbeitsagentur immediately (before the last day of employment) to register as arbeitsuchend (job-seeking), which starts the benefit clock. 2) After last day: formally register as arbeitslos (unemployed), receive ALG I. 3) When ALG I runs out or is insufficient: transfer to Jobcenter for Bürgergeld if household means allow. Many people confuse the agencies because both deal with unemployment. The practical rule: if you have worked in Germany and paid contributions, start with the Arbeitsagentur. If you have not worked, or have run out of ALG I, the Jobcenter is your contact.
For Expats Specifically
EU citizens living in Germany have access to ALG I and Bürgergeld on the same terms as German citizens, as long as they have valid EU freedom of movement rights (working or seeking work). Non-EU citizens need a valid residence permit that allows job-seeking — Blue Card holders, permanent residents, and those with a general work permit are typically entitled. Residence permits tied to specific employment (“tied to employer X”) may limit ALG I access — check your permit conditions with your Ausländerbehörde if uncertain.
