Abstract

The Covid-19 pandemic has been challenging social security systems such as the German welfare benefit system ‘Unemployment Benefit II (UBII)’, which might have changed its scope as a consequence. The article analyses the UBII entries and exits of unemployed people by individual characteristics and economic sectors as well as their participation in active labour market programmes during the Corona crisis. Using aggregate administrative data, we find that lower exit rates from unemployment drive the Corona-related change in unemployment for UBII recipients more strongly than for the average unemployed. Those most strongly affected in their employment opportunities are UBII recipients without a vocational degree underlining the importance of education. Furthermore, the sectors ac-commodation & food service and temporary work agencies that normally provide employ-ment opportunities for welfare recipients are the most affected by the Corona crisis.