Reduction of structural unemployment. Answering to the Federal Employment Agency (BA), the IAB is notably in charge of regularly analyzing the impact of the “Hartz IV” act (SGB II) enforced on January 1, 2005. This system brought together long-term social welfare and unemployment benefits into a new minimum income (Arbeitslosengeld II – ALG II) amounting to €345 a month, added to about €300 for housing and heating. When it was introduced, it sparked off demonstrations and helped defeat Chancellor Schröder at the legislative elections of September 2005. Five years later, IAB president Joachim Miller thinks that this law, officially aimed at actively helping the beneficiaries of this minimum income find a job, allowed reducing the number of long-term jobseekers. Thus, the number of ALG II beneficiaries went from 5.4 million in June 2006 to 4.9 million in June 2009, i.e. a 9.5% decrease. This is also a sign, still according to the IAB, of “structural improvement” of the labor market situation: the number of jobseekers decreased in 2007/08 while the number of vacancies remained the same.
years later, IAB president Joachim Miller thinks that this law, officially aimed at actively helping the beneficiaries of this minimum income find a job, allowed reducing the number of long-term jobseekers.
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