The 1999 trend in the area of unemployment benefits and unemployment assistance was slightly different to the trends of the past five years. In the beginning of 1994 as many as 43,300 unemployed people were entitled to unemployment benefits. The trend of a gradual fall in the number of recipients lasted a year and a half - the lowest number was recorded in June 1995 (27,758 recipients), then it began to climb again. The number of recipients peaked again in the beginning of 1998 when over 39,700 were entitled to unemployment benefits. The number of recipients was gradually falling in 1998 and 1999. At the end of 1999, there were 31,227 recipients of unemployment benefit.

The trend in the group of recipients of unemployment assistance is the reverse. In the same period their numbers first grew steeply to be followed by a comparatively more gradual fall. In the beginning of 1994 there were 19,900 recipients of unemployment assistance which by the end of 1998 declined to 2,800 recipients. In 1999 the falling trend reversed - the number of recipients slowly grew. At the end of 1999 there were 3,283 recipients of unemployment assistance.

The share of recipients of unemployment benefit and assistance was, on average, 31% of the total number of unemployed people (at the beginning of 1994 this figure was as much as 46.7%). The lowest proportion of unemployed people with entitlements was recorded in December 1995 (27%), in 1999 the share was the lowest in October when 29.7% of unemployed people were entitled to unemployment benefit or assistance.

Figure 19: Trends in number of recipients of unemployment benefit (UB) and assistance (UA) and share among unemployed, 1994 - 1999

Unemployed people may exercise their entitlements to unemployment benefit for the period during which they are jobless through no fault of their own. Under the changed EUIA, this right can be exercised provided that they had unemployment insurance before employment was terminated, that they were employed for a period of at least 12 months in the 18 months prior to the termination of employment, and that while the person is exercising the rights no suitable employment is available.

The number of recipients of unemployment benefits was influenced by the slightly lower influx of new persons entitled to the benefit than in1998. In 1999 the right to unemployment benefit was exercised by 21,661 recipients (16.7% less than in 1998).

On average in 1999, 33,860 people were receiving monthly unemployment benefit, or 10.3% less than in 1998. At the end of 1999, the ESS was paying unemployment benefit to 31,227 people, which is 13.5% less than in December 1997.

Figure 20: Recipients of unemployment benefit (UB) and unemployment assistance (UA) - 1999 average

The level of unemployment benefit depends on the average wage the recipient was receiving before his/her employment was terminated. The average monthly wage for 12 months before the start of unemployment serves as the basis for the calculation of unemployment benefit.

An unemployment benefit amounts to 70% of the basic wage for the first three months of entitlement and to 60% for all subsequent months. The level of unemployment benefits is harmonised in the same way as wages under collective agreement for the commercial sector. The level of unemployment benefits was harmonised with the increase in the costs of living when January (by 2.4%) and August (by 2.3%) payments were made.

The lowest unemployment benefit is set at 100% of the guaranteed wage (minus tax and contributions deducted from the guaranteed wage); the highest level is three times the lowest benefit amount (before the changes were introduced the lowest unemployment amounted to 80% of the guaranteed wage and the highest was four times the lowest).

The guaranteed wage in 1999 amounted between January and July to SIT 39,082 and between August and December to SIT 39,981.

The right to unemployment benefit can last at most:

• three months for those with one to five years' insurance;
• six months for those with five to 15 years' insurance;
• nine months for those with 15 to 25 years of insurance;
• 12 months for those with over 25 years' insurance;
• 18 months for people over 50 with over 25 years' insurance;
• 24 months for people over 55 with over 25 years' insurance.

A person becomes entitled to unemployment assistance if his/her right to unemployment benefit or his/her employment after the trainee period which lasted less than 12 months have ended. The right may be exercised by person who meet the condition under the income (80% of the guaranteed wage per family member) and property limits.

In 1999 the right to unemployment assistance was exercised by 6,716 people (3.7% less than in 1998), most of them (5,377) after the end of their unemployment benefit and 1,339 after the end of their trainee period. The right to the remaining part of assistance after keeping the right dormant was exercised by 945 people. At the end of the year, 3,283 were receiving assistance, which is 16.5% more than in the previous year. On average, the ESS paid monthly unemployment assistance to 3,045 unemployed people (8.6% less that the 1998 monthly average).

Unemployment assistance amounts to 80% of the guaranteed wage minus tax and contributions paid from the guaranteed wages. In the beginning of 1999 the assistance amounted to SIT 23,469 net and at the end of the year, to SIT 24,788 net.

There was a slightly greater proportion of women than men among those groups of people entitled to unemployment benefit (56.3% of the total) and unemployment assistance (56.3%).

There was also a discernible increase in the share of older people among recipients. The reasons for this include the fact that people wished to retire under the provisions valid until 31 December 1999. Of the recipients of unemployment benefit 62.8% were over 50, and as many as 84.7% were over 40 (50.5% of the unemployed as a whole). This structure is also affected by the number of people who exercised their right to the extension of payments of unemployment benefit until their retirement conditions are met; these amounted to 25%. In comparison with 1998, the share of older people among recipients of unemployment benefit increased significantly in 1999. The growth in the share of recipients over 40 was 3% and of recipients over 50, it was 8.3% on the year before.

The distribution of age groups among recipients of unemployment assistance is more even: 37.4% were under 25, 41.7% were between 25 and 40 years, 20.9% over 40. The share of young persons increased in comparison with 1998.

With regard to years of employment 40.3% of recipients of unemployment benefits had worked for more than 30 years, 40.4% had worked between 20 and 30 years. In comparison with 1998 an increase was recorded in the share of recipients who have worked for over 30 years (by 2.7%).

The share of young people is greater among the recipients of unemployment benefit than among the recipients of unemployment assistance which is the result of the option which allows unemployed people to exercise the right after a trainee period that was shorter that the prescribed duration of employment that guarantees the right to unemployment benefits. As a result, 15.6% of recipients had worked two years, 36.5% worked between 2 and 10 years, 29.7% between 10 and 20 and 18.2% have worked for more than 20 years.

By educational structure the recipients of unemployment benefit were predominantly persons who had attained first and second levels of education (42.1%), 30.3% had attained the third or fourth, 21.8% the fifth, 5.8% the sixth or seventh level of education. Of the recipients of unemployment assistance 28.5% had attained first and second levels of education, 39.3% the third and fourth, 27.5% the fifth and 4.8% the sixth or seventh.