Arbeitsmarkt: Weniger Arbeitslosengeld für Ältere könnte mehr als zwei Milliarden Euro sparen

A new calculation from the Institute for Labor Market and Vocational Research (IAB) suggests that reducing the maximum duration of unemployment benefits for older people to 18 months across all age groups could save the Federal Employment Agency (BA) at least 2.4 billion euros annually. This would not only cut costs but also incentivize older workers to seek new jobs or accept offers more quickly.

Currently, unemployment benefits are tiered: individuals up to age 49 can receive up to 12 months, while those aged 50-54 up to 15 months, and those aged 55-57 up to 18 months. If the maximum duration were reduced to 18 months for all older workers, even a 1.4 billion euro annual saving would be possible, according to IAB experts using data from 2021/22.

Adjusted for today's unemployment benefit values, the total savings could be around 20 percent higher. This development could reignite discussions about unemployment benefits. Employers and economists have long advocated for shorter benefit periods. The CDU's Economic Council, in particular, has called for this. The reason behind this includes labor shortages on the one hand and the BA's recent significant deficit on the other.

The agency is forecasting a financing gap of 10 billion euros for this year, which it usually covers with government loans, but may consider increasing contributions to the unemployment insurance fund in the coming years if the budget situation remains challenging. However, even a savings of around 2.5 billion euros would "not be enough to balance the financial deficit in the unemployment insurance system in the current economic situation," according to IAB Director Bernd Fitzenberger.

Reducing benefit periods could also lead to additional expenses elsewhere, as older workers are more likely to fall into the basic income guarantee system, requiring corresponding expenditures. Additionally, BA payments would no longer go into pension funds. The length of unemployment benefits increases with age, and experts expect that the incentive effect of shorter benefit periods would increase motivation to seek or accept jobs, provided suitable positions are available.

This behavior is observed in different groups of unemployed people: in the oldest group aged 58 and above, half did not start claiming benefits for more than 13 months, while those aged 16-49 only took four months. However, any time a new age threshold is reached for longer benefit periods, the duration typically jumps. Eliminating these jumps by equalizing benefit durations for all could lead to an additional savings of around 50 percent, according to experts.

In conclusion, potential savings of over four billion euros could be achieved by considering 2021/22 data and accounting for the added incentive effect. However, older workers face fewer job offers and benefit periods are used as a bridge to retirement, especially during mass layoffs in industries. Politically, there are valid arguments for longer unemployment benefit periods during difficult economic times compared to boom periods.

A majority of the population, according to IAB surveys, also believes that longer benefit periods should be granted to those who have contributed for a longer time to maintain contribution fairness. Even current Health Minister Carsten Linnemann, as CDU General Secretary, has advocated for raising payments for long-term contributors to strengthen contributory fairness.