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The recent decision made by the Administrative Court has raised concerns about the admissibility of the disputed AMS algorithm. The Court believes that there is a need for further clarification on the matter, specifically with regards to whether the digital tool intended to determine labor market prospects of the unemployed will significantly influence AMS personnel’s decisions. This question has been under scrutiny for almost three years.

The Labor Market Assistance System (AMAS) was designed to allocate funding measures more efficiently and provide support to those with medium labor market prospects. The system uses a computer algorithm to categorize job seekers into high, medium, and low labor market opportunities. However, the final decision on unemployment support was to be made by responsible advisors such as whether someone gets expensive skilled worker training or not.

The recent decision by the Administrative Court confirmed that the algorithm is in “significant public interest,” a prerequisite for justifying the use of personal data. However, it also confirmed the existence of “profiling.” Whether or not this profiling is admissible will depend on how much AMS employees’ decisions about job seeker assignments are influenced by automatically calculated labor market opportunities. This controversial question was not addressed by the Federal Administrative Court, so a new procedure will be necessary to clarify it.

As a result, it remains unclear when and in what form the program could be used. The AMS is currently examining the decision in detail to determine its next steps. The ruling was initially reported by The Standard (online).

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