TCO reports decline in Swedish unemployment insurance coverage

New data from the Swedish Confederation of Professional Employees (TCO) reveals a significant decline in the effectiveness of unemployment insurance (a-kassa) for white-collar workers. Currently, only 17 percent of full-time professional employees would receive 80 percent of their previous salary if they became unemployed today. This is a notable decrease from 2021, when the figure stood at 24 percent, and five years ago, when one in four employees qualified for such benefits.

According to TCO Chair Therese Svanström, the current income caps weaken financial security and risk harming labor market matching. The decline is attributed to policy changes, including reductions in benefits after three months of unemployment and stricter qualification requirements for the full 300 days of coverage. TCO argues that these measures may force highly qualified individuals into unsuitable low-skilled positions, leading to a loss of societal competence.