Policy Article

Federal Labour Agency - ever greater surpluses? (original publication in German)

Kiel Policy Briefs, 110

In Germany, the system of unemployment insurance has been in surplus since 2011, as the author Alfred Boss reveals in his analysis. Only a small part of the surplus is due to the cyclical stance of the German economy. The surplus mainly is a structural one. The rate of contribution to unemployment insurance should be reduced from 3 to 2.5 percent beginning in 2018. This would reverse the increase of the overall rate of contributions to social security in 2017. The increase of employment would be fostered.

Author

Alfred Boss