Background information

As a result of the COVID-19 outbreak and the subsequent severe slow-down of the economy, unemployment is expected to rise sharply. In order to increase the coverage and overall protection levels, the government is adapting the unemployment insurance. The measures include making eligibility criteria more generous and raising both minimum and maximum payout levels.

These changes are regulated in the Ordinance (2020:221) on changes in the ordinance (1997:835) on unemployment insurance (Förordning (2020:221) om ändring i förordningen (1997:835) om arbetslöshetsförsäkring.

Content of measure

The requirements concerning who can receive money from an unemployment insurance fund have been temporarily relaxed in terms of how much people need to have worked and how long people need to have been a member of a fund. Under the previous rules, a person had have been a member of an insurance fund for at least 12 months to be eligible for payouts. Now every month of membership during the months March-December will count as four months, thus making it possible to become eligible in only three months.

Under the former system, you had to have worked at least 50% during the past 6 months (or differently distributed but equivalent). This minimum limit has now been lowered to allow a larger number of part-time workers to become eligible.

Both the highest and the lowest amounts paid out by an unemployment insurance fund have been raised temporarily to alleviate the economic impact on people who become unemployed (the highest from SEK 910 to SEK 1200 per day, and lowest from SEK 365 to SEK 510 per day). Additionally, the six initial qualifying days have been removed and the unemployment insurance funds have received funding for administration.

Use of measure

In only a few weeks, the number of members in the unemployment insurance funds have risen sharply. How many will end up receiving pay-outs due to having lost their job is too early to say.

Target groups

Workers	Businesses	Citizens
Unemployed	Does not apply to businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government Trade unions	National funds Other

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Consulted	Consulted
Form	Direct consultation outside a formal body	Direct consultation outside a formal body

Social partners' role in the implementation, monitoring and assessment phase:

• Unknown
• Main level of involvement: Peak or cross-sectoral level

Involvement

No information available.

Views and reactions

The Swedish Trade Union Confederation wants these changes to become a permanent part of the Swedish unemployment insurance system. They argue that this is needed since the COVID-19 pandemic will have long-term consequences for the labour market and for individuals who have become unemployed.

Sources

• 16 March 2020: Ministry of Finance (2020) Economic measures in response to COVID-19 (www.government.se)
• 30 March 2020: Förstärkt arbetslöshetsersättning (a-kassa) för fler (www.regeringen.se)
• 07 May 2020: Temporarily reinforced unemployment insurance after from day 101 (www.regeringen.se)
• 21 September 2020: Temporarily reinforced unemployment insurance extended by two years (Höjd A-kassa förlängs med två år) (www.svt.se)