Unconditional unemployment benefit to be limited to 500 days from 2006
"Labour market support" to be conditional to work or training
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A new proposal in the government's upcoming employment programme calls for limiting the duration of unconditional "labour market support" given to unemployed job seekers to 500 working days.
According to the proposal, after two years of unemployment the benefit would be conditional to taking part in work or training that is offered. Turning down such an offer would lead to the cancellation of the benefit.
The proposal, which is being drafted by a working group chaired by top Ministry of Labour official Harri Skog, also calls for expanding the availability of work or training to the jobless. If no work or training is offered, the benefit will continue even after 500 days.
The employment programme, which is scheduled for publication next week, calls for clear changes in striking a balance between the state and municipalities in the financing of unemployment compensation. The controversial proposal would shift more of the financial burden to the local authorities, giving municipalities a greater incentive to work harder to promote employment.
The key target group of the changes, which are to take effect next year, are those who have been unemployed for different lengths of time for about a year, and who face the prospect of lengthy joblessness.
The Ministry of Labour calculates that there are about 100,000 such people in Finland.
Currently about 150,000 Finns are receiving labour market support of EUR 23.34 a day. Only about one in five of these are taking part in work or training.
About 18,000 Finns have received the benefit for the full ten years that it has been available.
According to the proposal, after two years of unemployment the benefit would be conditional to taking part in work or training that is offered. Turning down such an offer would lead to the cancellation of the benefit.
The proposal, which is being drafted by a working group chaired by top Ministry of Labour official Harri Skog, also calls for expanding the availability of work or training to the jobless. If no work or training is offered, the benefit will continue even after 500 days.
The employment programme, which is scheduled for publication next week, calls for clear changes in striking a balance between the state and municipalities in the financing of unemployment compensation. The controversial proposal would shift more of the financial burden to the local authorities, giving municipalities a greater incentive to work harder to promote employment.
The key target group of the changes, which are to take effect next year, are those who have been unemployed for different lengths of time for about a year, and who face the prospect of lengthy joblessness.
The Ministry of Labour calculates that there are about 100,000 such people in Finland.
Currently about 150,000 Finns are receiving labour market support of EUR 23.34 a day. Only about one in five of these are taking part in work or training.
About 18,000 Finns have received the benefit for the full ten years that it has been available.
Helsingin Sanomat