This paper examines further training of the unemployed in Germany throughout the period of 1991-2005, with a particular focus on the effects caused by the Hartz reform. The analysis inquires into the instruments and evaluation methods used, as well as the employment effects. In the 90s further training of the unemployed was a controversial issue. It was characterized by a negative lock in effect in the short-run, whereas the positive effects could be observed in medium- to long-run and were more evident in the Western Germany. Following the Hartz reform, the effects of further training are markedly better, especially in the Western part. This positive tendency is accompanied by a drastic reduction in spending on further training.