Wohin mit den Überschüssen der Bundesagentur für Arbeit?

The financial status of the unemployment insurance system in Germany has improved markedly since 2005. Some reform measures and the upswing of the economy are the most important reasons for the favorable development. It is hotly debated how to use the surplus of the Federal Labor Agency. Additional transfers to the unemployed and a small reduction of the rate of contributions are the measures proposed. However, it is possible to reduce the rate of contributions by an additional percentage point without running into financial distress in the next years. This can be concluded if the impact of the reduction of the rate of contributions on labor costs and labor demand is taken into account.