Foreign experience of financial support of citizens in case of unemployment

Issue: № 10, 2020

Doi: https://doi.org/10.37634/efp.2020.10.4

Introduction. Unemployment, as one of the world's economic problems today, significantly affects the material, social and professional level of the working population. Payment of unemployment benefits is one of the measures of social support of citizens by the state. Such social benefits are twofold, as on the one hand they replace lost earnings, and on the other one they will be perceived by the state regulation of labor resources. The purpose of the paper is to study and borrow positive experience of social insurance in case of unemployment in different countries of the world in accordance with their affiliation to labor market models and employment promotion. Results. The American Unemployment Insurance System is formed solely by employers' contributions (except in 3 states where employees also pay contributions) and provides benefits for 26 weeks. Each state has its own social security program, according to which contributions are formed and unemployment benefits are paid. If we talk about the European model of employment, its characteristic feature is that it is focused on reducing employment by increasing productivity and increasing the income level of working citizens. The Swedish model of social insurance in the event of unemployment is characterized by an active employment policy, in particular, preference is given to vocational training and professional development. In addition, the emphasis is on providing employment by creating jobs in the public sector with average and satisfactory working and pay conditions. The Japanese model of employment incentives has a number of characteristic features: the country has a widespread system of lifelong employment; the amount of remuneration for work is set depending on the length of service of the employee, his age and marital status; trade unions (unions) are not created on a sectoral basis, but directly at the level of economic entities. Conclusion. Building a multi-level social insurance system enables insured persons to receive high-level social benefits, insurers to create favorable working conditions and select highly qualified workers, and insurers to regulate the labor market and reduce unemployment.

Keywords : social insurance, unemployment benefits, foreign experience in employment regulation

References:

1. Karter Dzh., Bedar M., Bista S. Comparative analysis of the unemployment insurance system and insurance of employed persons in Asia and in the world. Decent Work Technical Support Unit and ILO Office for Eastern Europe and Central Asia. Moscow: ILO, 2014.102 p.(in Russian)

2. Unemployment benefits in Europe and the world in 2020. URL: https://visasam.ru/emigration/vybor/posobie-po-bezraboyice-v-mire.html (in Russian)

3. Bezusiy V.V. To study foreign experience in the field of employment. Law Forum. 2010. № 4. pp. 54–57. (in Ukrainian).

4. Kargapolova N.G. Avramchikova N.T. Unemployment benefit as a financial instrument for regulating the unemployment rate. Management of social and economic systems. 2016. № 2. pp. 71–73. (in Russian)

5. Shuvalov N. Unemployment benefits in Sweden 2019-2020. URL: https://visasam.ru/emigration/rabota/bezrabotica-v-shvecii.html (in Russian)

6. Matrusova T.N. Labor policy of the state in relation to older people in Japan. Labor abroad. 2003. № 2. pp. 23–48. (in Russian)

7. Takenaka H. Reforming Japan's social security system. URL: https://www.japantimes.co.jp/opinion/2020/03/03/commentary/ japan-commentary/reforming-japans-social-security-system/

Download paper