The long-term unemployed and workers receive a tough blow from the new unemployment insurance fund

Devastating for the long-term unemployed

On 18 June 2024, the Riksdag decided to implement significant changes in the unemployment insurance (a-kassan).

Devastating for the long-term unemployed, the disabled, immigrants and many vulnerable professional groups.

Save the unemployment fund! Vote here.

For the Unemployed:

• The new reduction in compensation may lead to financial difficulties for the long-term unemployed. These are often disabled or low-educated immigrants. Critics believe that this particularly affects low-paid workers and women, who often find it more difficult to quickly find new jobs.
• The decision aims to strengthen the line of work, but there are concerns that it could increase economic uncertainty and worsen the health of those affected.

Economic and social impact:

• The reduction in compensation can worsen economic inequality and lead to increased mental illness, as previous research has shown. The A-fund for the long-term unemployed of 5600 after tax per month will mean a strong downward pressure on wages and a pressure for tougher working conditions in many workplaces.
• The proposal could worsen recessions by reducing economic stability for the unemployed, which in turn reduces consumption and deepens the recession.

Here are the main points from the decision:

1. Decreasing the Compensation:

   • After 100 days of unemployment, the compensation is reduced from 80% to 70% of the previous salary. This aims to increase the incentives for the unemployed to return to the labor market more quickly.

2. Raised Ceiling for Compensation:

   • The ceiling for the allowance is raised to 80% of SEK 34 per month, compared to the previous SEK 000 per month.

3. Eligibility criteria:

   • Compensation is now based on income instead of time worked. This means that more people can qualify for unemployment benefits based on their income history.

4. Support for A funds:

   • To implement these changes, Sweden's unemployment insurance funds are allocated SEK 50 million for 2024 to facilitate the transition to the new system.

Save the unemployment fund! Vote here.

Links to more information

For more detailed information on the decision and its implications, visit the following sources:

• Current Affairs | The Swedish Parliament
• The iron-clad wage law
• More multi-disabled people to the assembly line
• Government: Create more low-wage workers