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5 Things You Should Know About Scandinavian Unemployment Insurance

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					5 Things You Should Know About Scandinavian
Unemployment Insurance

The Scandinavian economic sphere composed mainly
of the Nordic countries, Denmark, Norway, Finland,
and Sweden, sometimes including The Netherlands and
Iceland. Though these countries are economically
healthy and one of the financially stable nations in the
world, unemployment rate fluctuates from time to time.

Depending on many factors like the world market or
political   movements,     through    the   decades,
unemployment in Scandinavia is considerably low
compared to its European neighbors and other
countries in the world. In fact, with its high gross
domestic product (GDP) and purchasing power parity
(PPP) rates, Scandinavian nations perform well in the
world economy and are always included in the top
nations with solid market.

1. Scandinavian model

The Scandinavian model or the Nordic model is an
economic structure considered as a combination of the
Anglo-American social structure with that European
government-subsidized welfare benefits. It sprung from
the world economic changes throughout the 1980s up
to the early 2000s, as Scandinavian countries were also
subjected to risky effects.

As economies from all of the Scandinavia fluctuate
through the decades, the Nordic states initiated this
economic model to protect its citizens. One such
advantage of the Scandinavian model is the creation of
policies giving unemployed high percentage of benefits
from their previous work.

2. Unemployment Insurance

Unemployment insurance in Scandinavia varies from
one country to another. Unemployment insurance is a
policy in which an unemployed citizen in whichever
country receives benefits from the government.
Benefits are mostly calculated with the previous pay of
the unemployed.

These unemployment insurance policies are part of a
broader scope of social security of each country. They
are designed for the unemployed to cope up with their
living expenses like bills, mortgage, allowances, and
daily expenditures, from the time of job loss to the time
of getting a new employment.

3. World’s Best Places for Unemployment Pay

According to the Forbes article, “World's Best Places for
Unemployment Pay,” written by Matt Woolsey, the
governments of Scandinavian countries are mostly well
to do in paying its unemployed the first 500 days of
unemployment.

Unemployment benefits are but a fraction of the
previous salary, as low as 20%. However, Scandinavian
nations give more. Their governments give 80–90% of
the previous pay of the unemployed. This makes
Scandinavian nations, Sweden, Denmark, Finland, and
Norway included in the Top 10 Best Places for
Unemployment Pay. (source)

4. Cutting Off, Phasing Out, and Finding a New
Job

Though these nations give high benefits enough to pay
for the low unemployed population of their countries,
Scandinavia states still have to limit their governments’
release of money.
Each nation has its own policy of cut off and phasing
out benefits, like cutting a fraction of the benefit every 6
months or one year from 90% to 80%, depending on
the requirements of the unemployed.

Though this may seem put a pressure on the
unemployed, finding a new job in Scandinavia isn’t that
hard. These unemployment benefits are not a gap in
income but simple a bounce off from one job to
another.

5. Private Organizations

Although     this    world-renowned    state-funded
unemployment benefits come from tax money and
other government funding, professionals in private
organizations, trade unions, and other independent
employment agencies manage the unemployment
insurance.

These professionals and private organizations provide
their services by calculating the previous pay and social
benefits with that status of the unemployed, depending
on how long he or she has worked on his previous job
and how long he or she been unemployed.




Jul Domingo and Jasper dela Cruz are lifestyle and
business bloggers. They write for A-kasse-priser.org, a
Denmark-based website with a mission to make the
unemployment fund market more transparent.

				
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posted:1/11/2013
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