Unemployed people costliest in Belgium

An unemployed person costs the Belgian government an average €33,443 a year, reports EurActiv. In the report Why Invest in Employment? published yesterday, the European Federation for Services to Individuals (EFSI) calculated the cost of an unemployed person related to the benefit of an active person in six EU member states. Belgium takes first place, followed by France (€28,737), Sweden (€26,905), Germany (€25,550), Spain (€19,991) and Britain (€18,008). The report reveals that the most important cost is induced by the potential loss of revenue for governments. EFSI, which represents national federations and companies involved in personal and domestic services, stresses that schemes supporting the sector could create 5.5 million jobs at a low cost. “Public measures supporting the personal and household services sector will undoubtedly contribute to moving millions of undeclared workers from the shadow to the formal economy,” said Aurélie Decker, EFSI director. “It is time for governments to recognise that the cost of an unemployed person is higher than the potential loss of revenue induced by schemes supporting jobs creation in the sector.” Belgium’s service vouchers scheme costs on average €3,500 per year per worker, enabling women and family carers to better reconcile professional and personal life and allow them to return to the job market. It also contributes to the social inclusion of elderly and dependent people and those with low or no qualifications who are usually on the fringes of the labour market.