The changes to how long unemployment benefits can be paid have now been adopted by the Icelandic parliament, Alltinget, writes the state broadcaster RUV.
Read this article in Norwegian on Arbeidsliv i Norden
The government had proposed to cut the period from 30 to 18 months. In the end, the Allting settled on a compromise that reduces the maximum duration of unemployment benefit payments to 24 months.
Icelandic trade unions have issues stern warnings against shortening the duration people can claim unemployment benefits. They argue this penalises the most vulnerable in the labour market.
They also believe that workers are being asked to pay a high price for the government’s drive for greater efficiency.
The trade unions have also been critical to the government’s argument that the duration unemployment benefits can be paid should be reduced because this is the practice in other Nordic countries.
Workers’ representatives believe the government has forgotten to see the issue in a broader context, namely that other Nordic countries also have stronger welfare safety nets and a more stable labour market than Iceland.
