Unemployed job seekers have become increasingly willing to seize part-time and temporary job opportunities in Finland, finds a study by the VATT Institute for Economic Research.
VATT on Friday stated that the trend is partly attributable to legislative amendments allowing job seekers to earn up to 300 euros a month without losing a share of their unemployment benefits or housing allowance.
Job seekers, however, were relatively well incentivised to accept part-time and short-term job offers already before the adoption of the so-called earnings disregards in 2014–2015, according to VATT. “In Finland, earned income reduces unemployment benefits relatively moderately in comparison to the unemployment security systems in most other countries,” it said in a press release.
Its study found that working on a part-time or short-term basis while registered as an unemployed job seeker is considerably more common among women than men and among young people than older people.
Under 25-year-olds, for example, account for roughly a quarter of all recipients of adjusted labour market subsidy.
“In all groups partial employment during unemployment benefit receipt has become more common since 2010 and has been growing steadily also after the introduction of the earnings disregard,” stated VATT.
VATT highlighted that encouraging unemployed job seekers to accept short-term jobs is beneficial because the likelihood of finding full-time employment is considerably higher for those who have worked while unemployed than those who have been unemployed on a full-time basis.
The study also found that a noticeable share of unemployed job seekers who work while unemployed are ultimately offered a full-time job by an employer they previously worked for on a part-time or short-term basis.
Aleksi Teivainen – HT
Photo: Mikko Stig – Lehtikuva
Source: Uusi Suomi