The cuts will not be large. But as the reasons why unemployment is at a high level are structural, I find this reform harmful and unethical. The labor market is undergoing accelerating changes. The time when structural unemployment will hit 50% is not very far, maybe a couple of decades away. Job destruction by digitalisation and artificial intelligence will only accelerate in the future.

At this stage, the situation could be better remedied by retraining and re-educating at least parts of the work force rather than penalizing those who have hard time finding work.