Labor market - Researchers: Lifting Hartz IV sanctions is harmful
The suspension of sanctions for violations of Hartz IV regulations last year had a more negative impact on the placement of unemployed people than all the citizen benefit regulations combined. This is the result of a study by Nuremberg-based labor market researcher Enzo Weber, which he published on the social media platform Linkedin.
The German government had imposed a moratorium on sanctions in the second half of 2022 prior to the introduction of the citizen's allowance and practically waived cuts to benefits in the event of violations of the Hartz IV regulations.
During this period, the number of Hartz IV recipients who switched to the labor market fell by 6.9 percent due to the moratorium, according to Weber's study. "The measured moratorium effect means that seven out of 100 job entries that would have previously taken place in a month no longer materialized afterwards. This is on a noticeable and critical scale," said Weber.
Citizen's income: Much-discussed effect does not materialize
The Citizen's Income has not had the much-discussed effect of people giving up work and preferring to claim the Citizen's Income. "Never before have so few people moved from jobs to basic income support as today," said Weber. However, the number of people leaving the Citizen's Allowance for jobs is not currently increasing either; the introduction of the Citizen's Allowance had a negative effect of 2.6 percent. The number of long-term unemployed is 220,000 higher than before the coronavirus pandemic.
Therefore, an attempt must be made to adjust the citizen's income. Weber proposes faster adjustments to actual inflation instead of disproportionate increases in standard rates. In addition, it should not necessarily be possible to impose higher but longer sanctions - with the option of lifting them again if the conditions are met. There should be better financial incentives and start-up assistance for income increases.
It is striking that the number of sanctions imposed fell to a minimum just as the moratorium began in July 2022. "And it is actually in July that the greatest decline in job opportunities occurs," said Weber. At the same time, however, a comparable effect did not occur among the unemployed without Hartz IV.
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- Enzo Weber, a labor market researcher based in Nuremberg, shared his findings about the impact of lifting Hartz IV sanctions on the placement of unemployed individuals on LinkedIn.
- The Federal Government had temporarily suspended sanctions for Hartz IV rule violations in the second half of 2022, prior to the introduction of the citizen's allowance, effectively waiving cuts to benefits during that period.
- According to Weber's study, the number of Hartz IV recipients transitioning to the labor market decreased by 6.9% due to the moratorium, with seven out of 100 job entries not materializing after the suspension.
- The introduction of the citizen's allowance in Germany had a negative effect on the number of long-term unemployed, with 220,000 more individuals than before the pandemic currently receiving unemployment benefits.
- As the moratorium on Hartz IV sanctions began in July 2022, there was a significant decrease in the number of sanctions imposed, yet this effect was not observed among unemployed individuals not receiving Hartz IV assistance.
Source: www.stern.de
