28 February 2018

Deutsche Welle: Unemployed in Germany have greatest risk of poverty in the EU

Those who are unemployed in Germany face a much bigger risk of falling into poverty than in any other European Union country, according to figures released by European statistics office Eurostat on Monday.

After analyzing data from 2016, Eurostat found that the risk of poverty for those on unemployment benefit in Germany is at 70.8 percent - significantly higher than the average of 48.7 percent across Europe. [...]

Germans who have lost their jobs can at first claim 60 percent of their salaries as unemployment benefit (or 67 percent if they have children) - provided they have been paying social insurance contributions for at least 12 months.

After a certain period, which depends on how long they were in work, unemployed people must claim a standard benefit known colloquially as "Hartz IV," - currently set at €416 ($512) a month. Housing benefits have to be claimed separately." [...]

"We did have increasing inequality, and increasing poverty risk rates, since the end of the 1990s until around 2005, though since then there hasn't been a particular increase," he added. "There has been an increase because of the relatively high immigration rate - but if you take that out you have only a slight increase in inequality."

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