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Policy Article

Surpluses of the Federal Employment Agency - further reduction in contribution rates required (in German)

Authors

  • Boss
  • A.

Publication Date

Key Words

Budget Surplus

Reduction of Contributions

Social Insurance

unemployment insurance

Related Topics

Welfare State

Labor Market

Fiscal Policy & National Budgets

Germany

The Federal Labor Agency will achieve a budget surplus in 2019 as well as in 2020 – despite of the decrease of the rate of contributions to unemployment insurance in January 2019. The expenditures for the qualification of the employees will be strongly increased and unemployment benefits will be extended. However, the general reserves of the Agency (euro 23.5 bn at the end of 2018) will continue to increase. Against this backdrop, the author argues for another reduction of the rate of contributions to unemployment insurance.

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