The recent decision made by the Administrative Court has led to a delay in the admissibility procedure regarding the disputed AMS algorithm. The court has determined that further clarification is necessary on the matter, specifically on whether the digital tool intended to determine labor market prospects for unemployed individuals would significantly influence AMS personnel’s decisions. This question has been under scrutiny for almost three years.
The Labor Market Assistance System (AMAS) was intended 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.
The goal of AMAS was to allocate funding measures more efficiently, with a focus on providing support to those with medium labor market prospects. However, ultimately, it was up to responsible advisors such as whether someone would receive expensive skilled worker training or not.
According to the recent decision, the algorithm used in AMAS is considered to be in significant public interest and justifies the use of personal data. However, it also confirmed that there is “profiling,” which raises questions about its admissibility. Whether AMS employees’ decisions about job seekers are largely determined by automatically calculated labor market opportunities will determine whether profiling is admissible or not.
As a result of this controversial issue, it remains unclear when and in what form AMAS could be used. The program is currently being examined by AMS staff who are reviewing their next steps following this ruling. The news of this delay was initially reported online by The Standard newspaper.