Thursday, April 2, 2009

Unemployment, Swedish style

A few days ago I had the chance to visit a local Arbetsförmedling (employment services) office. Thank you to Sven and Tottie for setting this up! Like the U.S., Sweden has seen an increase in unemployment due to the world financial situation, but the severity of the problem varies by region. Western Sweden where we are has not been hardest hit, but the headline in today's local newspaper was about layoffs at Volvo trucks, a significant employer here. Last year there were between 8,000 and 9,000 people who were unemployed in the Gothenburg area; at present the figure is closer to 15,000.

An unemployed person in Sweden usually receives unemployment benefits equal to 80% of his or her last salary, up to a maximum of 680 SEK ($85) per day, or 4760 SEK ($595) per week. Standard unemployment benefits last for 300 days, or 450 days if a person has children at home under age 18. If a person has not found a job during this period of time, then reduced benefits (65% rather than 80%) can be extended up to 150 more days, during which time the person is required to engage in a REALLY intensive job search.

After that, if a person still has not found a job, then he or she would apply to a different social service agency to receive support for basic living expenses.

By way of comparison, unemployment benefits in Minnesota are usually around 50% of a person's recent salary, up to a maximum of $566, and standard benefits last 182 days. The appeal process is also different in some interesting respects, but probably not such exciting reading here! I look forward to filling everyone in on the details at Minnesota UI Appeals -- see you all soon!
-Kara

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