Sweden's unemployment fund is declining the most in the EU

"Swedish unemployment insurance fund has become a unemployment insurance fund."

It writes TCO in a report released in early July.

In 2021, the Swedish unemployment insurance fund ended up in 21st place in a comparison of 27 EU countries.

The temporary pandemic increases meant that Sweden climbed to 16th place in 2022, but at the end of 2022, compensation will again be reduced to the same level as before the pandemic.

That is: the ordinary ceiling for the unemployment insurance fund after tax will return from approximately SEK 18,000 to SEK 14,000.

TCO: "An erosion of the welfare state"

TCO's chairman Therese Svanström believes that a deteriorating compensation is problematic for a welfare society and that financial security acts as a stabilizer for the economy. 

- It is a serious development.

The idea behind the unemployment insurance fund is that it should be possible as a society to change in the labor market.

There is a risk that we will be afraid and unwilling to develop, she says.

Sweden's unemployment funds: "Does not follow wage developments"

Despite relatively low benefit levels, Svanström believes that there is a common perception in society that the unemployment insurance fund has not deteriorated at all.

- It is due to an erosion that has taken place for several decades and that the unemployment insurance fund's ceiling is not indexed, she says.

Sweden's unemployment funds agree with TCO that an indexation should be introduced.

- We believe that the level of compensation should be as predictable as possible, because then salaries, unemployment insurance and health insurance follow a similar development, says Tomas Eriksson, chairman of Sweden's unemployment insurance funds.

The Confederation of Swedish Enterprise: "Should not be high"

Politically, opinions on raising the level of compensation are divided.

Three out of five opposition parties want to lower today's remuneration levels, a line that is also supported by the Confederation of Swedish Enterprise.

Sven-Olov Daunfedt, chief economist at the Confederation of Swedish Enterprise, emphasizes that they see the unemployment insurance fund as a "adjustment insurance" and that "it is not the intention that it should be high."

- We see this as a completely wrong measure - especially right now when companies are shouting for people.

The research also shows that there is a very strong connection between higher unemployment benefits and increased unemployment, he says.