Almost 1 in 5 Flemings that lost their unemployment benefit at the start of the year have since found work. The figures appeared in Friday’s edition of the daily ‘Het Belang van Limburg’ and come from the office by the Flemish Employment Minister Zuhal Demir (nationalist).
Almost 20% of Flemish jobseekers that lost their unemployment benefit have since found work
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The Federal Government introduced measures limiting the right of unemployment to the first 2 years that a person is unemployed. Since the measures took effect in January 893 (18%) of the 5,073 jobseekers affected in Flanders have returned to work.
Not including those that the Flemish employment and vocational training services VDAB considers unable to work due to health or psychosocial problems the percentage of those that have lost their unemployment benefit but have since found work is 24%.
The reform being applied in waves. People who have been unemployed for more than 20 years lost their right to claim unemployment benefit on 1 January. Those that ave been out of work for between 8 and 20 years lost their unemployment benefits on 1 March. Those that have been unemployed for between 2 and 8 years will lose their unemployment benefit in the coming months.
The Flemish Employment Minister Zuhal Demir says that the early results are encouraging. When the reform was introduced, the assumption was that 1 in 2 people would return to work.
Ms Demir told ‘Het Belang van Limburg’ that this will be achieved, not least because those that will lose their unemployment benefit in the coming months have been out of for less time and should find it less of a challenge to return to the labour market.
The National Employment Service (RVA) estimates that it will spend 11.3 billion euro less over on unemployment benefit payments during the next 5 years as a result of the reform. The reform will save an estimated 1.7 billion euro this year, rising to 2.5 billion euro/annum in 2030.
Court of Audit
Last month the Court of Audit warned that a fall in income among those impacted by the measure could have a negative effect on the economy in the short term. The Court of Audit also doubts whether as many as a third of those impacted by the measure will find work and that the jobs found by those that do find work may not be long-term.
Meanwhile, the number of people claiming social assistance welfare payments may be higher than expected. The government has promised to fully compensate local social services departments (OCMW) that are responsible for welfare payments.
A study by Belfius last year found that the measures could cost local authorities up 203 million euros. The study states that if 30% that lose access to benefits turn to local OCMWs, municipalities will need to support around 16,000 additional claimants. If 46 % were to do so, the number rises to 24,000 people.