Unemployment benefits in Sweden

Unemployment benefits in Sweden are divided into a voluntary scheme with income related compensation up to a certain level and a comprehensive scheme that provides a lower level of basic support.

“Help-funds”, the first form of unemployment insurance in Sweden, were created in the 1870s, already closely linked to trade unions. Since the institution of local employment offices in the 1930s, in the climate of Keynesian policies, the State has begun to finance the unemployment benefits; since the 1940s, the insurances’ aim was to «provide economic support during a "transitional period" when the individual who lost his/her employment or left school actively seeks a new employment». In 1948 the employment offices were nationalized and the National Labour Market Board (Arbetsmarknadstyrelsen - AMS) was established as the central authority, charged also with the task of supervising the voluntary employment relief funds, subsidized and controlled by the unions. Since 2004 this last task has been taken over by the Unemployment Insurance Board (IAF).

In fact, the labour market policies in the after-war were built upon two concepts: the “active labour market policy” and the task of the unemployment insurance to support the readjustments of individuals to the labour market. To have this effect, the unemployment insurances had to have some features:

Today, the Swedish unemployment insurance system is made up of basic insurance and voluntary income-related insurance. The basic insurance is granted to everyone who meet the basic and work requirements: 320 SEK per day are granted to anyone over 20 years who is enrolled at the employment office and is carrying out a job-seeking plan. The voluntary income-related insurance requires the workers to join one of the 36 independent unemployment funds. To become one of the 3.4 million members (2013) of unemployment funds a worker must have been employed for at least a month. After one year of uninterrupted membership of an unemployment fund and six months of half-time work, the worker is entitled to receive an earning-related daily allowance up to 80% of his or her normal income (with a maximum of 680 SEK per day). The normal income is the average income during the last 12 months, including days of unemployment. This goes for the first 200 days, after which the rate decreases to 70% until the 300th day, and 70% from day 301-450 (only available for parents to children under the age of 18). After 300 (or 450) benefit days anyone who is still unemployed can obtain a place in the "Jobb- och utvecklingsgarantin" (Job and development guarantee) labour market programme.

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Wikipedia