The Finnish government is preparing new penalties for unemployed job seekers, Minister of Employment Arto Satonen (NCP) confirmed on Yle TV1's breakfast show on Friday.
Yle reported earlier that the government was preparing to tighten sanctions for unemployment benefit recipients who fail to meet their obligations.
"The sanction system is under reform. It is not, in itself, a tightening. If a job seeker does not fulfil their obligations, such as applying for a certain number of jobs, submitting an application to a designated job, or participating in scheduled interviews, then sanctions will apply," Satonen said.
The government has examined various models for tightening penalties, or "mandatory waiting periods".
One model involves a violation of the rules resulting in a one-week waiting period and loss of unemployment benefits during that time.
After failing to comply a second time, the unemployment benefits recipient could be required to fulfil a "work obligation" lasting between six and 12 weeks.
Work obligation refers to the loss of unemployment benefits indefinitely. The right to benefits is restored once the person has, for example, participated in certain services or worked for a prescribed period.
"The basic idea is that work is actively sought. If the obligations are fulfilled, there will be no sanctions. This is a similar situation to driving over the speed limit, where you get a fine. If you drive according to the rules, you won’t get a fine. This is not, in itself, a question of lowering unemployment benefits," Satonen said.
According to Satonen, a detailed proposal for the reform has not been made yet, and the specifics will be reviewed as the matter progresses.
He said that the purpose of the measures is to focus actions on the early stages of unemployment to prevent it from becoming prolonged.
The All Points North podcast asked why foreign nationals may face job discrimination in Finland. Listen to the episode via this embedded player, on Yle Areena, via Apple, Spotify or wherever you get your podcasts.
Worrying development
Jukka Haapakoski, Executive Director of the Finnish National Organisation of the Unemployed, sees the tightening of unemployment benefits as a concerning development.
"Most unemployed people feel that the TE [jobseeking] services have been helpful. But when unemployment benefits are penalised for even a single mistake, the unemployed begin to fear making mistakes. This is not a good thing. A system that is meant to offer help would become a watchdog," Haapakoski said.
According to Haapakoski, the "activation rate" has been low in recent months. That refers to jobseekers who are taking part in "active services". These include being employed with a pay subsidy or via a job alternation scheme, taking part in a work and education trial, in employment training or in independent study supported by unemployment benefit and rehabilitative work activities.
Haapakoski said that 22.6 percent of jobseekers were taking part in such activities, and only 6.5 percent of long-term unemployed people.
"We're talking about record-low figures," he added.
Finland's unemployment rate climbed to 9.4 percent in February, according to recent figures published by Statistics Finland on Tuesday.
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