Fish factory unemployment system due for a revamp

ALS, the unemployment office, recently handed the trade minister a set of recommendations for structural changes to the unemployment benefits system.

One proposed change is a further lowering of the ALS fee at the start of next year.

However, the future of the so-called FV system, which offers unemployment benefits to temporarily unemployed fish factory workers, remains up in the air.

“There are differences of opinion within the ALS committee, and it appears difficult to reach an agreement regarding the FV system,”-says ALS committee chairman Eyðfinnur Jacobsen.

“We informed the trade minister that we need more time to reach a conclusion on the future of the FV system, but we still aim to submit recommendations for the FV system in time for the legislative changes planned for 1 January 2023.”

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Unemployment is at an all-time low in the Faroes. However, ALS’ expenses for the FV system are rising, going up by DKK 4.6 million last year compared to the previous year.

Total FV system unemployment insurance contributions rose from DKK 20 million in 2020 to DKK 24.4 million in 2021. The average annual number of claimants in the system increased from 262 in 2020 to 324 in 2021.

One of the recommendations handed to the trade minister this spring was that it is not right that many people in the FV system are out of work in a period with record-low unemployment rates.

“This is a key issue of discussion in the ALS committee these days,” says Jacobsen.

Read the Faroese version of this article here.

More Faroese News in English.