Number of temporarily unemployed rises sharply

According to figures from the National Employment Office (RVA/ONEM), the number of temporary unemployed peaked in the first half of this year, not counting the corona years. The manufacturing and construction sectors in particular relied on temporary unemployment more frequently this year. In construction, the number of temporarily unemployed went up by 27.4 percent whilst manufacturing saw an 18.5 percent rise. The RVA figures also show that large companies with over 1,000 employees were especially more likely to call on temporary unemployment in the first half of 2024, with a 36.9 percent increase compared to a year earlier, which is substantially higher than the average 15.2 percent increase for all companies combined.

Fig. Average number of temporarily unemployed in the first half of each year

Temporary unemployment occurs when employees are temporarily unable to work, due to economic difficulties or bad weather conditions for example, while they are still formally employed. In the first half of 2024, 65 percent of days of temporary unemployment were due to economic reasons, 26 percent to bad weather and 9 percent to other causes such as force majeure. This scheme was created to help companies cope with economic shocks without having to lay workers off right away. In the above situations, employees are paid temporary unemployment benefit from the disbursement organisation (= the trade union or the auxiliary fund for unemployment benefits if the employee is not enrolled with a union.), and sometimes a supplementary sum in compensation paid by their employer or sectoral funds.

However, temporary unemployment also has drawbacks for employees. In addition to the loss of wages, they lose things like meal vouchers and even holiday entitlements may potentially be affected. However, in the case of economic unemployment, the days of temporary unemployment are equated with days worked, so the holiday entitlements are preserved. This provides some protection for employees in difficult economic times.

A hike in temporary unemployment is often a sign of upcoming restructuring operations. Temporary unemployment is often a first step to cut costs without immediately having to resort to redundancies. If the situation persists, companies may be forced to put in place incisive restructuring steps  and lay off employees. Falling business confidence in July, after a few months of stabilisation, suggests that a strong recovery is not imminent.

• A lot is involved when firing an employee in the manner required by law. Which is why we have gathered all the relevant information in a comprehensive dossier. If you still have questions, please do not hesitate to contact us. See the dismissal file.
• If you are forced to lay off several employees, be sure to comply with the sectoral provisions on multiple redundancies or the rules on collective redundancy. Click here for further details.
• Discover our offering on restructuring and redundancies

If you would like more information on multiple or collective redundancies, be sure to contact our experts by e-mail (cns.legal.consult@acerta.be) or by phone (016/24.63.45).

If you currently have a temporary surplus of staff but you would like to hire them back at busy periods you should know that you can share your staff with other employers.

If there is no longer the right fit between the content of the job and your employee’s skills or wishes, Werkschakelpunt allows you to keep your employee sustainably employed so you can prevent drop-out or unemployment.