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Unemployment security in transition

When the government changes, unemployment security always becomes one of the key negotiating targets in the drafting of the Government Programme. Unemployment security plays a major role in the livelihood of our members, and its changes are directly reflected in our everyday life in the fund.

Unemployment security helps our members to maintain their livelihood when their work ends due to fixed-term employment or for production-related and financial reasons. The number of job alternation compensation recipients in our fund is the highest in the fund rigister field in relation to the number of members.

The payment of benefits by unemployment funds has lived strongly with changes in the employment situation, especially due to the impact of the pandemic. In 2020, nearly EUR 2.7 billion in benefits were paid, while last year payments fell to good EUR 1.8 billion. In comparison, the average disbursement in 2014–2022 was EUR 2.4 billion, so last year’s payments were almost EUR 600 million lower than average. Payments for 2023 will still be lower than in 2022.

When this year’s government base changed, it was clear that the austerity measures would also affect unemployment security. However, saving is more than just a balancing measure for the economy – it is also a value choice.

However, saving is more than just a balancing measure for the economy – it is also a value choice.

The Government must consider what kind of benefit system best promotes employment and the overall well-being of society.

The amendments now being implemented in the Government Programme aim (reference: Government Programme, Annex B. Tables on financial decisions(opens in new window, you move to another service)) at annual savings of approximately EUR 550 million in general government finances (this includes savings from unemployment benefits and, on the other hand, increased costs of social assistance, for example).

These changes will inevitably have a major impact on the livelihoods of our members.

Sami Aapro

Acting Head of Unemployment Fund / Leading Legal Counsel