First in Europe: Finland to pay unemployed basic income of $587 per month

Those 2,000 unemployed chosen will receive 560 euros every month, with no reporting requirements on how they spend it. The amount will be deducted from any benefits they already receive.

Finland has become the first country in Europe to pay its unemployed citizens a basic monthly income, amounting to 560 euros ($587), in a social experiment hoped to cut government red tape, reduce poverty and boost employment.

Finland's Prime Minister Juha Sipila visits a reception centre in Oulu, Northern Finland. (Reuters File Photo)

Olli Kangas from the Finnish government agency KELA said on Monday that the two-year trial with the 2,000 randomly picked citizens who receive unemployment benefits kicked off January 1.

Those 2,000 unemployed chosen will receive 560 euros every month, with no reporting requirements on how they spend it. The amount will be deducted from any benefits they already receive.

The unemployment rate of Finland, a nation of 5.5 million, stood at 8.1% in November with some 213,000 people without a job — unchanged from the previous year.