The Belgian labour force could well grow by tens of thousands of people in the coming months. At least, that’s what the federal government is hoping for. As of next year, it will no longer be possible to be eternally unemployed. And people who are ill for more than a year will have to prove they are really incapable of working, reports 24brussels.
Belgium has unique characteristics regarding unemployment benefits. Until now, unemployed individuals could retain their allowance indefinitely, with no limitations on the duration of the social benefit. Additionally, Belgium has the highest number of long-term sick workers in Europe. Those with medical conditions receive disability benefits funded by social security to cover their living expenses.
In response, the government led by Prime Minister Bart De Wever has initiated reforms. Beginning next year, individuals who remain unemployed for over 20 years will lose their allowance, with subsequent phases targeting all those who have been unemployed for more than two years, subject to a few exceptions.
The primary objective is to reintegrate these individuals into the workforce. Those unable to find employment and facing financial hardship can still receive an allowance from their municipality, while a third group will neither have a job nor assistance.
From unemployed to sick
In recent years, access to unemployment allowances has tightened significantly to mitigate social security abuse. This shift has likely contributed to an increase in the number of Belgians receiving benefits from the official health insurer, as some individuals have transitioned from unemployment to sickness claims to maintain their allowances.
To address this trend, governmental action will target health insurance as well. Doctors are tasked with rigorously verifying the health status of patients to ensure they are genuinely incapable of work. Employers are urged to implement measures to prevent illness among workers and to facilitate their return. Health insurers must enhance their control mechanisms, while job seekers will receive improved support.
The scale of the issue is substantial. Belgium’s labour force comprises approximately five million individuals, including employees, self-employed workers, and civil servants. There are over half a million long-term ill individuals and significantly more than a hundred thousand long-term unemployed. In 2023, the official health insurance system disbursed over nine billion euros in allowances.
Optimistic
The government aspires to see many of the unemployed and sick individuals re-enter the workforce and contribute to tax revenues soon. However, experts caution against excessive optimism. The demographics in question often do not represent the most productive segments of the workforce. Many individuals on health insurance are genuinely ill and unable to work, and a considerable number of long-term unemployed face various challenges that hinder their competitiveness in the labour market. It will require substantial effort to secure employment for these individuals, and it is unlikely that the positions they attain will be well compensated, limiting their tax contributions.
Nonetheless, the government argues that this initiative presents benefits for all. It could improve the state budget through reduced allowances and increased tax income, while helping alleviate labour shortages with the introduction of new workers. For those affected, the prospect of re-entering the workforce could open opportunities to enhance their lives and increase their earnings. The left-wing opposition, however, warns that a social crisis looms as individuals unable to work risk losing their allowances.
The true impact of high unemployment and sickness rates, particularly in regard to abuse and the dysfunctionality of the labour market, remains uncertain.
© BELGA PHOTO LAURIE DIEFFEMBACQ
