Overview
- The Institut der deutschen Wirtschaft published a short report on Sept. 11, 2026 calling for the removal of longer Arbeitslosengeld I durations for people 50 and older and for a uniform maximum entitlement of 12 months.
- The IW says about 85,000 people over 50 received benefits beyond 12 months in 2024 and estimates the change would cut roughly €2 billion from unemployment‑insurance spending each year.
- The institute models that even if many affected people moved from insurance benefits to the tax‑funded Grundsicherung, the net fiscal effect could remain positive at about €400 million annually.
- The proposal is a research recommendation with no legal effect; any change would require a parliamentary amendment to SGB III, would not retroactively void current decisions, and needs trust‑protection and clear transition rules.
- Labor researchers and social advocates, including the IAB, warn that older jobseekers face higher re‑employment barriers so the cap could push some into Grundsicherung or early retirement and shift costs between benefit systems, while the Wirtschaftsrat of the CDU has already pressed for a 12‑month limit, raising the political stakes.