Brussels, Belgium – Over 100,000 people across Belgium could soon lose their unemployment benefits under new federal plans to cap payments after two years, Federal Minister of Labour and Economy David Clarinval (MR) revealed in an interview with De Standaard.
Currently, Belgium is one of the few European nations that does not impose a time limit on unemployment benefits. Under the existing rules, jobseekers receive 65% of their last salary, subject to upper and lower limits, with payments decreasing over time.
The amount of financial support also depends on the claimant’s family situation and employment history. However, the proposed reforms mark a significant shift in Belgium’s welfare system.
The new rules stipulate that unemployment benefits will be discontinued after a maximum of two years, except for individuals over the age of 55 who have accumulated sufficient work experience.
According to the reform, those who have worked for at least one year within the last three years will be eligible for one year of unemployment benefits.
For every additional four months worked, an extra month of benefits will be granted, up to a maximum of two years.
This means that individuals who have been out of work for extended periods without substantial employment history will face a cut-off from financial assistance.
Belgium currently has approximately 320,000 unemployed individuals under the age of 55, with over 100,000 having been jobless for more than two years.
French-Speaking Belgians to Bear the Brunt
The policy shift is expected to disproportionately affect the country’s French-speaking population. Of the long-term unemployed, 46,580 reside in Wallonia—Belgium’s poorest region—while Brussels and Flanders each account for a quarter of those unemployed for more than two years.
Wallonia has struggled with high unemployment rates due to rapid deindustrialisation. In 2022, GDP per capita in the region stood at €30,700, which is 13% below the EU average. By contrast, Brussels reported a GDP per capita of €69,500, nearly double the EU average.
Despite these economic challenges, Clarinval expressed little sympathy for those in long-term unemployment in Wallonia.
“This has a lot to do with mentality,” he told De Standaard. “In Wallonia, there are unemployed people who celebrate their 20th year of unemployment. But unemployment is not a career.”
Coalition Partners Call for Adjustments
In response to concerns about the impact of the reform, the federal government is working on transitional measures for those affected.
Coalition partners CD&V and Vooruit have urged an extension of the unemployment benefit period for individuals undergoing training in high-demand sectors. Some of these training programs can take up to four years to complete.
Reducing unemployment benefits is a key component of the Arizona coalition’s strategy to address Belgium’s growing budget deficit, which reached 4.2% of GDP in 2023.
By limiting the duration of unemployment claims, the government aims to save €902 million next year, with projected savings reaching €1.9 billion by 2029.
As Belgium moves forward with the policy shift, debates continue over its potential socioeconomic consequences, particularly for those struggling to find stable employment in economically weaker regions.
This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members
