Unemployment for Young People Could Be Cut - The Reykjavik Grapevine

Unemployment for Young People Could Be Cut

Published November 17, 2009

Unemployment benefits given to people between the ages of 18 and 24 could be cut, if a bill submitted by the Ministry of Social Affairs passes as is.
Specifically, the bill wants to redirect a portion of the money given to unemployment payments for this group and put it into support for classes and job training. However, sources close to RÚV report that there is talk that this would apply to those between the ages of 18 and 24 who still live with their parents, and have no children of their own. This group could see their unemployment benefits cut in half, with the money instead used to help pay for classes or job training.
Labor unions are not entirely pleased with the idea, as they’ve pointed out that a certain percentage of the population just isn’t going to university, and to cut their unemployment benefits while they look for work could bring with it unexpectedly bad results.
Other changes have been proposed to unemployment benefits as well. Among them is a change in partial benefits. Whereas now, someone working 90% is entitled to receive 10% unemployment, for example, a change in the law could make it so that a person would need to work as low as 75% in order to qualify for support benefits.


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