STOCKHOLM, Dec 20: Sweden began controversial reform of its generous unemployment benefit system on Wednesday which has brought thousands of people onto the streets in defence of a long tradition of welfare protection.

The centre-right government elected in September to replace a centre-left administration, campaigned on a promise to tackle unemployment by increasing incentives for people to seek work rather than live off benefits.

On Wednesday, parliament is set to adopt reforms of state payments to the unemployed by cutting the amounts, reviewing the qualifying criteria and raising the financial contributions which most people must make to the system. Contributions would depend on employees' unions but on average would be tripled.

Although official figures put the jobless rate at 4.3 per cent in November, experts say that a fifth of Swedes of working age live on state subsidies -- either claiming unemployment, sick leave or early retirement payments or taking part in government retraining schemes.—AFP