The income of unemployed jobseekers in SAK-affiliated sectors has deteriorated substantially due to government welfare cuts, according to a recent survey commissioned by the Central Organisation of Finnish Trade Unions (SAK).
The survey indicated that the cuts have hit women particularly hard, said SAK in a press release on Wednesday.
The unemployment survey found that a quarter of jobseekers in SAK-affiliated sectors are forced to manage on less than EUR 1,000 a month. The proportion of women with incomes below this threshold increased to 33 %, which was 22 % in 2024.
Women aged between 31 and 60 years, for example, experienced an average 15 % decline in monthly income.
The largest fall in real monthly income was suffered by women (EUR 222) and men (EUR 224) aged between 41 and 50 years. The median monthly pre-tax income was EUR 1,200 for women and EUR 1,400 for men.
“The government has made massive cuts in earnings-related unemployment benefit totalling some EUR 900 million. These cuts have driven a great many unemployed workers into poverty, and have also widened the income disparity between women and men,” said SAK Research Specialist Ari-Matti Näätänen.
He also pointed out that unemployment in Finland has risen to nearly 10 % – the second highest in the European Union – with a fall in the number of job vacancies.
The loss of income is strongly evident in the everyday lives of unemployed workers, with 43 % reporting that they cannot afford food or clothing. The corresponding figure in 2024 was 38 %. Three quarters (74%) of survey respondents also believe that their income is not sufficient to meet unexpected expenses.
Government welfare cuts have increased child poverty. These cuts included abolishing the child supplement in unemployment benefit, which Ari-Matti Näätänen found is part of the reason why so many unemployed jobseekers aged between 31 and 50 years are now unable to make ends meet.
SAK has called on the government to restore the protected portion rule that formerly enabled claimants to take irregular and part-time work without losing unemployment benefit. Phased reductions in unemployment benefit should also be moderated, with a shortening of the employment condition for eligibility.
The government should pay special attention to child poverty and its escalation in Finland at this time. The Finnish Institute for Health and Welfare (THL) now finds that government cuts are pushing some 27,000 children below the poverty line.
The underlying causes of unemployment remained the same as they were in the 2024 unemployment survey.
While age discrimination (31 %), lack of full-time work (26 %) and low pay (22 %) are the most common obstacles to employment, job-seeking is also hampered by the poor quality of vacant positions and a lack of required skills.
The survey was conducted through an email in April where a total of 1580 unemployed jobseekers responded.
- Govt
- Cuts
- Hit
- Women
- Hard
Source: www.dailyfinland.fi
