Everybody who works as an employee in Germany has a deduction from his pay called "Arbeitslosenversicherung" or "Unemployment Insurance". This is not private insurance it is public insurance. To qualify for this insurance you have to work for a total of 360 with less than a three-month lapse between jobs. Then you qualify to receive "Arbeitslosengeld I" or "Unemployment Benefits I", which is 60% of your gross income if you are single, or 70% of your gross income if you are married and are the sole supporter of the family houshold (your tax card says Tax Class III), otherwise if you are married, but your spouse still works, you get 60%, just like single people do.
This Unemployment Benefits Group I will cover you for six months. To receive this, you must register with the local Arbeitsamt in the county seat, and they transfer the funds to your bank account - you don't stand in line to pick the money up.
If six months go by, and you still haven't found a job, then you receive "Arbeitslosengeld II" or it is often called "Hartz IV" (after the "idiot" who thought it up). They call it "unemployment benefits" but in reality it is more or less welfare. To qualify, you have to fill out lots of forms about how much property you own, how much money have in the bank, how many assets you still have, if there are working and/or wealthy relatives living in your household who support you with cash or goods. If there is nothing left that you can sell (save your home and your car if it worth less than 5,000 Euro), then they will give you a little less than 400 Euro a month to live on (As the Germans say, "Too little to live on, too much to give up and die") They try to find you a job, and many of the jobs they offer you are dead-end nowhere jobs, with no future, because people who employee Hartz IV recipients receive government benefits to employee them for the first 8 months of employment. Usually, these employers turn around and fire the employees as soon as the government subsidies expire.
At the moment there has been rumours of some discussion from the newly elected Merkel-Cabinet that they are going to abandon Hartz IV, and go back to the original unemployment benefits programm, since Hartz IV has turned out to be the government subsidizing unemployment in disguise, because the employers take advantage of Hartz IV employment incentives, and offer no real long-term job perspectives. Originally Mrs. Merkel's political faction thought Hartz IV was a good idea, because they thought it would be a better incentive for people to take on any job rather than rake in unemployment benefits. But now the economy has changed, and it's not just free-loaders who are having a very hard time finding a new job.
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