Belgium: Big changes to unemployment benefits

Belgium ends unlimited unemployment benefits, capping duration at two years, affecting 100,000 long-term unemployed and saving €1.9 billion by 2029

The key points: Belgium plans to limit unemployment benefits to a maximum of two years, affecting over 100,000 long-term unemployed people. This change aims to reduce the budget deficit and is expected to save 1.9 billion euros by 2029.

Why this matters: This reform represents a significant shift in Belgium's social security system and could impact the labour market and social dynamics in the country. The government will likely implement transitional measures for those affected and may face social and political challenges as the changes take effect.

The story in numbers: Belgium has around 320,000 unemployed people under the age of 55, of whom 100,102 have been unemployed for more than two years. According to Clarinval, almost half of these people have been unemployed for more than five years, and more than 16,000 have not worked for a decade.

Of the 100,000 unemployed, almost half come from Wallonia (46,580) and about a quarter each from Flanders (26,656) and Brussels (26,866). "This has a lot to do with mentality," says Clarinval. "In Wallonia, there are unemployed people who celebrate their 20th year of unemployment. But unemployment is not a career." Clarinval added that the government is working out transitional measures for those affected. 

Limiting unemployment benefits is a key part of the government's plan to reduce Belgium's budget deficit. The measure is expected to save 902 million euros next year, rising to 1.9 billion euros by 2029, the end of the government's term.