ABSTRACT

The global underemployment acts as a filter. While better qualified, younger and ‘productive’ unemployed people will soon find a new job, also after a dismissal for whatever reason; those who belong to ‘problem groups’ often fail to do the same. For the long-term unemployed in particular, the precarious social security system has adverse effects, because there is ‘good’ and ‘bad’ support in case of unemployment. The German social insurance system came into existence towards the end of the 19th century, mainly at the instance of the imperial chancellor Otto von Bismarck. This anti-democratic politician wanted to ensure mass support with this ‘labour policy’. Since the Middle Ages, providing help for the poor in Germany has not only been the concern of the municipal poor relief, but also of the Christian ‘Caritas’. Since financial support of the unemployed is the responsibility of the government in the corporatist German social security system, ‘free’ sector is mainly concerned with immaterial consequences of unemployment.