Less unemployment and €30 million more in benefits

The number of unemployed individuals in Slovenia has decreased significantly over recent years, while the amount allocated for unemployment benefits has risen sharply. In the first half of this year, the government spent 117.18 million euros on unemployment payments, representing a 30 million euro or 36 percent increase compared to the same period last year. This rise comes despite a decline in the total number of registered unemployed persons, reflecting changes in both labor market conditions and legislation. Unemployment figures have remained below 50,000 since 2023, with June marking a record low of 42,245 registered jobless individuals. Last year’s average monthly figure stood at 45,410, and in 2024 it was 45,982. By contrast, during the height of the pandemic in 2020, the average number of registered unemployed reached 85,003 per month. The highest recorded level of unemployment occurred in October 1993, when 137,257 individuals were officially classified as unemployed. Despite fewer people receiving unemployment benefits, the average payment increased substantially due to legislative amendments. In the first half of this year, the average monthly benefit amounted to 1,278 euros gross, whereas in the same period last year, the average was 864 euros. This increase stems from a new law enacted in January, which adjusted the minimum and maximum levels of unemployment compensation based on the gross minimum wage. As a result, the lowest unemployment benefit is now set at 70 percent of the gross minimum wage, and the highest at 130 percent. For this year, these thresholds translate to a minimum of 1,037 euros and a maximum of 1,934 euros. In the previous year, the government allocated 161.53 million euros for unemployment benefits, followed by 158.11 million euros in 2024 and 153.03 million euros in 2023. These figures highlight a steady increase in the financial burden associated with unemployment support, even though the number of recipients has fluctuated slightly. In 2020, the cost of unemployment benefits reached 245.7 million euros, despite a much higher number of beneficiaries, approximately 25,882 per month. Eligibility for unemployment benefits requires individuals to have been insured for at least ten months within the 24 months prior to becoming unemployed, or six months for those under 30. Additional criteria include having paid contributions for unemployment insurance, not having ended employment through their own fault, being registered with the employment agency, and submitting an application for benefits after the termination of mandatory insurance coverage. Benefits cease upon employment, self-employment, retirement, complete inability to work, or other legally defined reasons such as incomplete or false information, extended detention, or failure to provide timely updates to the employment agency regarding relevant circumstances. Under the latest legal amendment, recipients who face allegations of misconduct can respond by attending a personal hearing or providing documentation related to the alleged violation. According to the Employment Agency, last year, 199 cases resulted in the withdrawal of benefits due to fault-related reasons, down from 200 in 2023 and 183 in 2024. These numbers indicate a slight decrease in the frequency of benefit revocations, possibly linked to improved compliance or procedural adjustments. The shift in unemployment trends and benefit structures reflects broader economic dynamics and policy responses aimed at supporting workers during periods of transition. While the labor market continues to show resilience, the evolving nature of unemployment benefits underscores the need for adaptive policies that balance fiscal responsibility with social protection. The current situation illustrates how legislative changes can influence both the accessibility and affordability of unemployment support, shaping the experiences of those navigating the workforce.