More employment via "government profit sharing"?

For unemployment to be reduced in Germany, labour costs must be lowered significantly. However, historically developed income distribution cannot be encroached on without calling into question the social consensus between those who draw income from labour and those who draw income from capital. Dr. Ronnie Schöb, University of Magdeburg, presents a model for de-coupling labour costs from the income of the employed. His proposal is aimed at a "government profit sharing" by which the unemployment insurance contributions are lowered and the Federal Labour Office in return is given equity interests in the enterprises. The state assumes the associated risks, and the portion of labour income that does not flow to the employee but to the state is de-coupled from labour costs.