In February, the Open Unemployment Fund asked its members about how the already implemented and upcoming cuts to unemployment security have impacted, or will impact, their finances, finding employment, and everyday life. 812 members responded to the survey. According to 60% of the respondents, the amendments in unemployment security have already affected or will affect their finances. The majority estimated the impact at 200 to 400+ euros a month.
Cuts have significant impact on monthly income
We asked our members to estimate how the cuts to unemployment security have impacted, or will impact, their monthly income. The most common answer, given by 27% of respondents, placed the impact in the range of 200 to 300 euros per month. 24% of the respondents estimated the impact at 100 to 200 euros. The two categories with larger sums each received 20% of the responses, while only 9% chose the category with the smallest impact of 50 to 100 euros. In other words, the financial impact of the cuts is more than 200 euros a month for the majority of respondents.
The responses clearly indicate that the cuts have had and will have substantial impact on the standard of living of our members. According to the respondents, available income is significantly reduced which makes everyday life more difficult in many ways. Mortgage payments and bills become more of an issue, less money is available for food and hobbies, purchasing power falls, and all consumption choices require compromises.
Amendments do not help in finding employment
According to the Government Programme, the objective of the amendments is to increase employment. However, almost a third (30%) of the respondents think that the amendments make finding employment more difficult. On the other hand, 43% of the respondents stated that the amendments have not had or will not have any impact on finding employment. Many respondents are yet to experience all the effects the amendments may have, evident in the fact that 26% of the respondents were not yet able to say how the amendments will affect them. It should be noted that a very small share of respondents, only 1%, think that the legislative amendments make finding employment easier.
Responses indicate major concerns for the future
Of the amendments already implemented or to be implemented, the respondents estimated that the biggest impact will come from the extension of the employment condition to 12 months. More than half of the respondents, 53%, considered the impact to be major, while 10% considered it to be moderate. Fulfilling the employment condition was particularly difficult for those working part-time, intermittently, seasonally or as freelancers. They are afraid that due to the extended employment condition, they are no longer eligible for earnings-related allowance for unemployment.
Removal of protected part of earnings has a major impact on personal finances and reduces the incentive to accept work
The responses clearly highlight how removing the protected part of earnings has a negative impact on financial security as well as on applying for work and working. 46% of the respondents think that the removal affects their everyday life significantly, while 17% consider the impact as moderate. The respondents strongly feel that working intermittently, seasonally or part-time is no longer financially worthwhile after the removal of protected part of earnings and the extension of the employment condition.
According to the survey, the periodisation of holiday compensation also has a major impact on our members. 40% of respondents feel that the impact is major, while 19% consider it moderate. The impact of the periodisation comes up in several answers to open-ended questions, too. The periodisation postpones paying out earnings-related allowance, making life more difficult financially during the periodisation.
The removal of child increments is another cut that the respondents consider a major setback, with 21% of the respondents indicating that it has a major impact on their everyday life. This removal makes life much harder for families with children. Combined with the other cuts, the joint effect is even characterised as catastrophic. All in all, the responses indicate that the majority of respondents are really well educated on the legislative amendments. The cuts are also exceptionally massive which has likely increased common interest in them.
