Half of long-term unemployed end up on welfare or sick pay after losing benefits; 1 in 10 finds work

In Belgium, a significant portion of long-term unemployed individuals are struggling to re-enter the workforce after their benefits were curtailed. Out of 45,591 people who lost their unemployment benefits in the first quarter of this year, many having been unemployed for over eight years, just under 10%, or about 4,200 individuals, have managed to find new employment. This data comes from figures released by the RVA (National Employment Office) and seen by Het Laatste Nieuws.

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This concerns people who were unemployed for more than 8 years and were therefore furthest from the labor market. Then I find this almost 10 percent quite encouraging. Because for this group too, the limitation of unemployment is apparently an incentive to find work.

Minister of Employment David Clarinval expressed cautious optimism, viewing the nearly 10% re-employment rate as encouraging for a group furthest from the labor market. He anticipates that subsequent waves of benefit reductions will yield better results, potentially leading to about a third of those affected finding work by year's end. Labor economist Stijn Baert from Ghent University agrees, noting that the first six months of unemployment are crucial, after which employers' perceptions of candidates can turn negative.

Despite the small success in re-employment, a larger group, over 23,000 people, has transitioned to welfare benefits, and more than 4,300 have moved onto sickness or disability benefits. Combined, this represents more than half of those who lost their benefits in the initial period. This trend has drawn criticism, with Baert pointing out that while the gates to unemployment are being guarded more closely, the access points to welfare and sickness benefits have remained the same or even become more accessible.

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The gates to unemployment have been better guarded, but the gates to welfare and sickness benefits have remained the same or even been opened a little wider.

Baert suggests that municipalities actively helping people find work should receive more resources. Currently, the federal government subsidizes welfare payments, meaning municipalities that issue more welfare benefits receive more federal funding without bearing the direct cost. Baert argues for a reversal of this system, where municipalities demonstrating success in activating the unemployed would be rewarded with greater financial resources.

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Municipalities that activate more should have received more resources.