Job activation program again mired in controversy

The news that over half of the recipients of basic unemployment support in Finland failed to meet the requirement of the activation measures introduced in January brought the contentious program back to political debate on Wednesday.

According to the program, those who have failed will see their unemployment support reduced by slightly under five percent from April. To avoid the cutback, the people should have either worked part time, earned as an entrepreneur or used public services that boost their labour market eligibility.

Reacting to the news, Jarkko Eloranta, chairman of the blue collar central organization SAK, demanded that the program be halted.

Labor Minister Jari Lindström dismissed the claims that the aim of the government had been just to reduce spending on unemployment benefits.

When started in January, the new system was met with major national demonstrations initiated by the trade unions.

Lindström acknowledged that regional differences are large. There are areas where employers "cannot show their activity due to lack of employers and insufficiency of public support services," he said on Wednesday, adding that resources for arranging support services would be increased when the need has been established.

While 54 percent of recipients of basic unemployment support did not qualify, the attrition rate the recipients of salary based unemployment money is not out yet.

Outi Mäki, director of the largest Finnish unemployment fund which serves mainly highly educated and specialist level unemployed, said their clients have faced particular difficulty to meet the requirement. She explained to national broadcaster Yle last week that part time work matching high level education is rare and public labor services cater poorly the professionals and executives.

Salary based unemployment money is available for members of unemployment funds for the initial 400 days of their unemployment. If still unemployed after 400 days, they fall to the public level. The average salary based unemployment money was 1,400 euros whereas the public basic support was 800 euros in 2016.