Since 2000, the global financial storm has hit the major countries and influenced the consumption and the investment behavior, and the global unemployment rates have thereupon soared. For nearly three decades, the unemployment rate in Taiwan has been comparatively low. Influenced by the recent international economy development and the change of industrial structure, the unemployment rate in Taiwan soared until 2003, when the Employment Insurance Act enforced.
The German welfare model has been a pioneer in welfare policy, and serves as a good model for Taiwan. Since 2004, the unemployment in Germany has decreased significantly due to the Hartz reforms, the Unemployment Benefit І and II. The Hartz reforms have also kept the unemployment benefit system running smoothly and promoted employment, public employment service organization working even more closely. By examining the unemployment insurance system of Taiwan and Germany, the paper tries to show the possibilities and future directions for Taiwan.
