Labour market: Less unemployment benefit for older people could save more than two billion euros
Older people receive unemployment benefits for up to two years - younger people only for one year. Labor market researchers say that an adjustment would bring in at least 2.4 billion euros per year.
A new calculation by the Institute for Labour Market and Vocational Research (IAB) suggests that the German Federal Employment Agency (BA) could save at least 2.4 billion euros per year if the duration of unemployment benefits for older workers was reduced to one year. Currently, the benefit duration ranges from 12 to 24 months depending on age, with those aged 58 and above eligible for up to 24 months if they have worked for at least four years in the previous five.
Reducing the maximum benefit duration for all older workers to 18 months would still result in savings of 1.4 billion euros per year. The discussion on unemployment benefits may intensify, with employers and economists calling for shorter benefit durations.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
