More and more short-term unemployment benefits

The number of unemployment (WW) benefits has risen in recent years to over 400 thousand by the end of September 2013. Inflow and outflow are increasing. The amount of short-term WW benefits has grown dramatically.

More unemployment benefits claimed and terminated

In the first nine months of 2013, an average of 50 thousand new unemployment benefits were registered each month versus about 20 thousand five years ago. More new benefits were granted and more benefits were terminated. With an average of 43 thousand, the number of benefits terminated each month in 2013 was nearly twice as high as in 2008.

Unemployment benefits, inflow and outflow over the first nine months

More young people in and out of employment

The rise in the number of new and terminated unemployment benefits is not solely caused to the ongoing recession. The growing number of flexible employment contracts - in particular among young people - also plays a part in this respect. Flex workers lose their jobs more easily. As a result, their period of entitlement to unemployment benefits remains relatively short.

Under-35s in particular contribute to the inflow and outflow. This is shown, if the total inflow and outflow as a percentage in the labour force is taken into account. In the first nine months of 2013, infow and outflow among 25 to 35-year-olds was 14 percent of the labour force in that age category versus 5 percent in 2008. The percentage among 15 to 25-year-oldsigen has even increased more than fourfold from 3 percent in 2008 to 12 percent in 2013.

Unemployment benefits, inflow and outflow as a percentage in the labour force, first nine months

Sharp rise in short-term unemployment benefits

The shift to more short-term unemployment benefits is also an indicaton of the changing labour market. The number of unemployment benefits terminated within six months, for example, increased from 72 thousand at the end of 2008 to 180 thousand at the end of 2012, i.e. just over half of all unemployment benefits in 2012. The proportion of short-term benefits increased notably among under-35s. At the same time, the proportion of benefits exceeding twelve months dropped from more than 40 percent to 25 percent of the total.

Unemployment benefits by duration period, end of the year

Ton van Maanen