Social Democrats vow to overturn unemployment insurance reforms

Sweden's Social Democrats and union confederation LO want to overturn the government's decision to lower unemployment insurance payouts.

Writing in Dagens Nyheter, Mona Sahlin and Wanja Lundby-Wedin claimed that recent changes to the system have made people so fearful of unemployment that their creativity is hampered and they are less willing to try something new. According to the leaders of the two closely linked organizations, the net result is damaging for the development of society.

“That is why the unemployment insurance scheme should provide the vast majority of people with 80 percent of their previous income,” they wrote.

On March 1st the upper limit for unemployment benefits was dropped from 730 kronor to 680 kronor per day.

After 200 days of unemployment payments are to be reduced to 70 percent of the previous wage, followed by a further reduction to 65 percent after 300 days.

Before the centre-right Alliance came into power, those covered by the scheme received 80 percent of their previous income regardless of the length of time spent out of work.