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21 March 2025

Belgium's Unemployment Reform Threatens 100,000 Jobs

A government plan to limit benefits casts uncertainty on the futures of thousands of long-term unemployed individuals.

In Belgium, a significant proposed reform by the government looks set to reshape the landscape of unemployment benefits, targeting approximately 100,000 individuals deemed long-term unemployed. Employment Minister David Clarinval (MR) hopes to push the legislation through before the summer of 2025, effectively limiting unemployment benefits to a maximum of two years. The implications of this decision are profound, particularly within Brussels, which stands out as the region most affected.

According to figures reported by the National Employment Office (ONEM), of the 100,000 individuals under 55 years old who have been unemployed for over two years, nearly 27,000 reside in Brussels. The statistics depict a concerning reality, with more than 5,000 people in Brussels-Ville alone expected to feel the impending effects of this reform. Surrounding districts like Schaerbeek and Anderlecht will see additional impacts, with reports indicating over 3,000 individuals each.

Clarinval indicated the urgency behind these reforms, stating, "I hope to have the reform voted on before summer, but the transition period still needs to be discussed" (reported by Sudinfo). Such a time-frame underscores the potential urgency the government feels amidst rising unemployment figures and economic challenges.

The situation grows graver when analyzing predictions made by Vivalis, an organization focusing on health and support services. They forecast that around 10,200 individuals excluded from unemployment benefits could find themselves without any form of income within six months of losing their support. With an additional 8,000 possibly qualifying for the social integration income from CPAS, the social fabric within Brussels could face significant strain.

An even more alarming statistic reveals that, in Molenbeek, for instance, two-thirds of those risks excluded from unemployment benefits do not meet the criteria necessary to access CPAS support. This paints a dire picture for many families potentially thrust into financial turmoil. Florence Lepoivre, the Secretary General of the FGTB Brussels, expressed doubt over the potential effectiveness of the reform, questioning whether limiting support would genuinely encourage individuals to seek work. She stated, "Limiting unemployment benefits in this way will push many into precarious situations, discouraging them from seeking jobs."

The discussion surrounding the reform has stirred concern across regions, particularly in Flanders, where the potential fallout continues to raise alarms. Here, parties from the coalition government have raised questions about exceptions for those training in shortage occupations. With Belgium having one of Europe's highest job vacancy rates at 4.1%, as recently highlighted by Eurostat, the impending exclusion of long-term unemployed may exacerbate existing skills shortages.

In the week following March 24, technical discussions about the reform will begin. Yet, anxieties about excluding job seekers under this new framework persist. As noted in recent debates, excluding individuals pursuing training may ultimately hinder efforts aimed at filling these essential job vacancies.

Vandormael, president of the Walloon CPAS federation, also highlighted an upcoming shift in social welfare dynamics, stating, "With the upcoming reform, we will have more people receiving aid from the CPAS than unemployment benefits, which is truly a historical turnaround." His remarks evoke concern about the administrative burdens this could place on social workers, who already face heavy caseloads across the board.

Notably, past experiences from earlier reforms signal a troubling trend: during the last unemployment reform in 2012, the redeployment of resources saw a significant uptick in social assistance claims. For instance, the number of social integration incomes doubled, leading to a financial strain on local municipalities. Gregory Philippin, the mayor of Ans, reflected on how past policies had reverberated through local services, stating, "The number of social integration incomes has doubled and the municipal allocation in 10 years increased from 2 to 4 million. This may create similar challenges once again."

Amidst these layered concerns, Clarinval confirmed that discussions would also cover exemptions for individuals pursuing employment training in professions experiencing labor deficits. The coalition acknowledges that maintaining jobs communication is essential, but tension remains palpable with the N-VA party rejecting the idea of extending unemployment benefits for these categories.

With the clock ticking towards the government’s proposed reforms, the debate continues to intensify at both legislative and community levels. Various stakeholders—including labor groups, politicians, and social aid organizations—express differing perspectives on how to best approach the unemployment crisis within the country.

The urgency for a resolution is paramount, especially as individuals strive to navigate an increasingly complex job market filled with opportunities yet thwarted by bureaucratic barriers. As advancements in the discussions roll on, one thing remains clear: the stakes are high, and the outcome of these reforms will affect thousands of lives for years to come.