Adapting unemployment benefit systems to the economic cycle

Summary:

As a result of the economic crisis, unemployment has increased across Europe, leaving many people in need of financial support to avoid falling into poverty as well as help to find a new job. In response to the high levels of unemployment brought about by the recession, European countries have increased expenditure on LMPs, including both ALMPs and passive measures providing income support, such as unemployment benefits. This European Employment Observatory (EEO) Review summarizes the key messages emerging from 33 national articles on the theme of ‘adapting unemployment benefit systems to the economic cycle’ which were produced in July 2011 by the EEO network of SYSDEM experts. The summary provides a discussion of unemployment and expenditure on labour market policies in Europe using data collected at European level; the different unemployment benefit (UB) systems and labour market incentives in place across the 33 countries covered by the Review; the different reforms to UB systems implemented across Europe during the economic crisis; and the national responses to the reform priorities identified in the Europe 2020 Framework.