EXCLUSION. Reduce the number of long-term unemployed by 320,000 by 2020, measured against the annual average in 2008.

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GERMANY 1 NATIONAL 2020 TARGET FOR THE REDUCTION OF POVERTY AND SOCIAL EXCLUSION Reduce the number of long-term unemployed by 320,000 by 2020, measured against the annual average in 2008. Source: National Reform Programme (2015) PROGRESS TOWARDS THE 2020 NATIONAL TARGET FOR THE REDUCTION OF POVERTY AND SOCIAL EXCLUSION Source: Eurostat (LFS) 1 Figures in this profile for data obtained from the Eurostat website are based on data extracted around 5 July 2016, unless otherwise stated.

COMPOSITION OF THE POPULATION AT RISK OF POVERTY OR SOCIAL EXCLUSION (2014) Source: Eurostat (EU-SILC) Source: Eurostat (EU-SILC),

MACRO-ECONOMIC AND LABOUR MARKET CONTEXT Source: Eurostat (National Accounts, LFS, ESSPROS). Data as at 5 July 2016. SOCIAL PROTECTION EXPENDITURE Source: Eurostat (ESSPROS). Data as at 5 July 2016. Note: The total figures of social expenditure include all benefits excluding administrative costs.

MAIN SOCIAL INDICATORS INCOME AND LIVING CONDITIONS Note: For the poverty threshold values, levels are shown in PPS but changes are shown as changes in national currency terms and accounting for inflation.

Source: Eurostat (EU-SILC, LFS)

INVESTING IN CHILDREN Source: Eurostat (EU-SILC, LFS, Mortality data)

High Low Earnings (66%) Average Earnings LONG-TERM ADEQUACY OF PENSIONS: THEORETICAL REPLACEMENT RATES (2013-2053) Net Gross TRR case 2013 2053 2013 2053 Men Women Men Women Men Women Men Women Base case I: 40 years up to age 65 57.0 67.6 39.9 49.5 Base case II: 40 years up to the SPA 57.3 67.3 40.1 49.2 Increased SPA: from age 25 to SPA 57.6 74.4 40.3 56.1 AWG career length case 62.8 55.4 76.6 71.8 43.9 38.8 58.2 53.4 Longer career I: from age 25 to 67 74.4 56.1 Shorter career I: from age 25 to 63 61.0 43.6 Longer career I: from age 25 to SPA+2 84.0 65.2 Shorter career I: from age 25 to SPA-2 67.6 49.5 Career break unemployment: 1 year 74.1 55.8 Career break unemployment: 2 years 73.8 55.5 Career break unemployment: 3 years 72.4 54.0 Career break due to child care: 0 year 75.6 56.9 Career break due to child care: 1 year 74.1 55.8 Career break due to child care: 2 years 74.0 55.7 Career break due to child care: 3 years 73.4 55.3 Short career (30 year career) 60.1 42.8 Early retirement due to unemployment 70.0 51.7 Early retirement due to disability 58.1 41.2 Indexation: 10 years after retirement 69.7 51.4 Base case I: 40 years up to age 65 51.6 66.7 39.9 49.5 Base case II: 40 years up to the SPA 51.9 74.3 40.1 56.4 Increased SPA: from age 25 to SPA 52.1 76.4 40.3 57.3 AWG career length case 56.8 50.1 77.4 72.0 43.9 38.8 58.2 53.4 Longer career I: from age 25 to 67 75.7 56.7 Shorter career I: from age 25 to 63 58.7 43.6 Longer career I: from age 25 to SPA+2 85.3 65.2 Shorter career I: from age 25 to SPA-2 66.7 49.5 Career break unemployment: 1 year 75.6 56.6 Career break unemployment: 2 years 75.5 56.5 Career break unemployment: 3 years 75.1 56.1 Career break due to child care: 0 year 76.0 57.1 Career break due to child care: 1 year 76.0 57.0 Career break due to child care: 2 years 75.8 56.9 Career break due to child care: 3 years 75.3 56.5 Short career (30 year career) 56.1 72.2 39.3 53.6 Early retirement due to unemployment 74.7 55.8 Early retirement due to disability 71.2 52.9 Pension rights of surviving spouses 96.9 76.5 Base case I: 40 years up to age 65 48.9 50.7 29.9 36.9 Base case II: 40 years up to the SPA 49.2 55.5 30.1 36.7 Source: Joint SPC/EC 2015 report on Pension Adequacy in the European Union (2013-2053)

HEALTH CARE SYSTEMS Source: Eurostat (EU-SILC, Mortality data, SHA) Note: Self-perceived health refers to the percentage of the population reporting either good or very good health. Source: OECD.stat (all financing agents, all health care providers) TRENDS IN TAKE-UP OF SELECTED BENEFITS 2 2 These data have been collected by the SPC in the context of monitoring the social impact of the crisis. It includes only a selection of benefits which have been considered most reactive to the crisis. The number of unemployed (standard definition by the ILO) is given as a background.

definition unit source definition unit source link comment definition unit source link comment definition unit source link comment Unemployment Unemployment according to ILO definition - Total Thousands of persons - seasonally adjusted Eurostat Unemployment benefit recipients Benefit recipients (UB I + UB II) thousands of recipients Source: Bundesagentur für Arbeit (Federal Employment Agency) http://statistik.arbeitsagentur.de/navigation/statistik/statistik-nach- Themen/Arbeitslose-und-gemeldetes-Stellenangebot/Arbeitslose/Arbeitslose- Nav.html?year_month=aktuell Social assistance benefit/means-tested minimum income recipients Social Assistance recipients thousands of recipients Source: Bundesagentur für Arbeit (Federal Employment Agency) http://statistik.arbeitsagentur.de/navigation/statistik/statistik-nach- Themen/Lohnersatzleistungen-SGBIII/Kurzarbeitergeld/Kurzarbeitergeld- Nav.html?year_month=aktuell Disability benefit recipients new disability pension recipients thousand of recipients (annual figures) Source: Deutsche Rentenversicherung Bund (German statutory pension insurance scheme)

SUMMARY TABLE OF MAIN SOCIAL TRENDS Note: For the poverty threshold values, levels are shown in PPS but changes are shown as changes in national currency terms and accounting for inflation. For consistency with the main SPPM dashboard latest changes refer to 2013-2014 for EU-SILC based indicators and 2014-2015 for LFS-based indicators, while changes since 2008 refer to 2008-2014 and 2008-2015 respectively.

KEY SOCIAL CHALLENGES AND GOOD SOCIAL OUTCOMES, GERMANY Social policy area Key social challenge Good social outcome 1. Preventing poverty and social exclusion through inclusive labour markets, adequate and sustainable social protection and high quality services 2. Breaking the intergenerational transmission of poverty tackling child poverty 3. Active inclusion tackling poverty in working age 4. Elderly poverty/adequate income and living conditions of the elderly 5. Health The rate of housing cost overburden is higher than the EU average. At-risk-of poverty rate for children living in households at work (0.55<WI<=1) is at the EU average but shows some negative development. In-work poverty, notably for women, shows a significantly negative development. There is a relatively high non-take-up of minimum income benefits 3. Aggregate replacement ratio (excluding other social benefits) is below the EU average. Risk of poverty and social exclusion in old age (65+) has been deteriorating and is close to the EU average. At-risk of poverty rate in old age (65+) is still below the rate of the general population, but is increasing and now markedly higher than the EU average. The high influx of refugees and migrants raises social inclusion challenges. 6. Other key issues There is a higher than average gap between the risk of poverty or social exclusion for persons with and without disabilities. 3 It is not possible to provide exact figures on the extent of this phenomenon due to the degree of uncertainty in the results of model simulations. 12