“Strengthened security and work line” – under that heading, Labor Market Minister Johan Pehrson (L), together with Finance Minister Elisabeth Svantesson (M) and representatives of other Tidö parties, presented the government’s plans for the unemployment insurance fund.
– We have had the same system for a long time and it has unfortunately caused many people to be stuck in unemployment for far too long. It is costly both for society and the individual, says Johan Pehrson.
“Too much hassle”
According to the government, today’s rules for unemployment insurance are “bureaucratic, complicated and outdated” as the compensation is primarily governed by how long a person has worked instead of the loss of income. In addition, it is believed that today’s rules invite cheating and reduce the drive to get a new job, because those who have once qualified for unemployment compensation can continue to pay out up to SEK 22,000 a month, year after year.
The need to tighten the rules is further strengthened by the difficult economic situation in Sweden and the fact that more and more people are at risk of losing their jobs in the wake of the recession, the government believes.
The government wants to keep the compensation at 80 percent of the salary during the first period of unemployment, but proposes to reduce it by 10 percentage points from day 101 and by a further 5 percentage points from day 201.
“It pays to work”
– It should pay to take a job or go to education, says Johan Pehrson.
The government wants more people than today to qualify for unemployment compensation – not least young people and self-employed people. The ceiling in compensation is raised by SEK 1,000 to SEK 34,000 a month – but only for the first 100 days.
Those who are still unemployed after 300 days can, according to the government’s proposal, receive activity support with a ceiling of SEK 30,000 a month. What is new is that this is also scaled down by 5 percentage points every 100 days down to a floor of SEK 365 a day, which according to the government is more than today.