BDA calls for unemployment benefits to be limited to one year - Bundlezy

BDA calls for unemployment benefits to be limited to one year

BERLIN / LONDON (IT BOLTWISE) – The general manager of the Confederation of German Employers’ Associations (BDA), Steffen Kampeter, has proposed limiting the duration of unemployment benefits to one year. This measure is intended to increase motivation to look for a job and relieve the burden on the welfare state. Kampeter argues that longer benefit periods keep people in a waiting pattern and make it more difficult to enter the labor market.

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The discussion about the duration of unemployment benefit receipt in Germany has received new impetus from recent statements by Steffen Kampeter, the general manager of the Confederation of German Employers’ Associations (BDA). Kampeter advocates limiting the duration of benefits to one year in order to increase motivation to look for a job and relieve the burden on the welfare state. In his opinion, a longer benefit period artificially keeps people on hold and makes it more difficult to re-enter the job market.

The duration of unemployment benefits in Germany is currently staggered. Younger unemployed people under the age of 50 who have worked between 12 and 16 months in the five years before registering as unemployed receive unemployment benefit for six months. For older unemployed people aged 58 and over who have worked subject to compulsory insurance for at least four of the last five years, a benefit of up to 24 months is possible. This regulation is intended to take into account the different life situations and labor market opportunities.

Kampeter argues that one year of unemployment benefit is enough to reorient yourself and not lose touch. A shorter benefit period could also relieve the burden on the Federal Employment Agency and stabilize unemployment insurance contributions. He emphasizes that experienced specialists are urgently needed on the job market and should not be kept away by false signals.

The Federal Employment Agency reported in October that 984,000 people in Germany received unemployment benefits. This number illustrates the importance of the discussion about the duration of the benefit. However, critics of the proposed limit warn that shortening the duration of benefits could weaken social security. Instead, they are calling for targeted measures to encourage people to take up work and to support the unemployed in finding a job.


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BDA calls for unemployment benefits to be limited to one year
BDA calls for unemployment benefit to be limited to one year (Photo: DALL-E, IT BOLTWISE)

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