Reduction of long-term unemployment

Abstract

"In preparation for the Annual Report 2016/2017 of the German Council of Economic Experts, the IAB was asked to provide its expertise on strongly persistent long-term unemployment. Indeed, the long-term unemployed benefited from the increase in employment in Germany over the last decade. Since 2012, however, in line with the overall development of unemployment, there has been no further reduction in the number of long-term unemployed. Since then, the level of long-term unemployment has remained relatively stable at somewhat over a million persons.<br> In autumn 2016, the IAB commented on the possibilities for reducing long-term unemployment by means of counselling and placement as well as active labour market policy. In doing so, it elaborated on possible reasons why long-term unemployment is so entrenched; on how active labour market policy financing could be improved; on specific qualification requirements; and also on instruments such as publicly subsidised employment and a social labour market. Moreover, the IAB commented on the role of the low-wage sector for the long-term unemployed, on the influence of the reservation wage in reducing long-term unemployment, and on research results dealing with the effect of exemption from the minimum wage for the long-term unemployed. The findings are summarised in this current statement." (Author's abstract, IAB-Doku) ((en))

Cite article

Beste, J., Bruckmeier, K., Klingert, I., Kupka, P., Lietzmann, T., Moczall, A., Osiander, C., Vom Berge, P. & Wolff, J. (2017): Verringerung der Langzeitarbeitslosigkeit. (IAB-Stellungnahme 02/2017), Nürnberg, 24 p.