Annual report of the
Employment Fund, 2021

Managing Director’s review

We managed to provide security for changes in working life by performing our tasks reliably, while reforming our organisation and developing our services

The second year of the COVID-19 pandemic was the Employment Fund’s third year of operations. This means that we have been working remotely and in compliance with pandemic restrictions for two thirds of the new fund’s existence. Despite the effects of the pandemic, we continued to excel in our task in 2021 by financing unemployment security and other types of social security. We also supported adults in developing their competences through adult education benefits.

Our liquidity remained at a good level

In 2021, unemployment benefit costs remained high due to the COVID-19 pandemic, which left the Employment Fund’s financial result clearly in deficit. However, Finland’s economic growth improved in the second half of the year, which was also reflected in a reduction in unemployment and an increase in employment. Despite the deficit, the Fund’s financial result clearly exceeded the estimate made when the 2021 budget was approved, and our liquidity was good throughout the year. We were able to collect unemployment insurance contributions comprehensively and excel in the financing tasks we are responsible for. To secure financing, it was decided to raise unemployment insurance contributions by a moderate amount in 2022, based on the Fund’s proposal.

Janne Metsämäki

JANNE METSÄMÄKI
Managing Director

Key figures in 2021

Unemployment insurance contributions collected

EUR million
(3,340)

Adult education benefits paid

EUR million
(197)

Contributions to Kela for persons not covered by unemployment funds

EUR million
(207)

Contributions to
unemployment
funds

EUR million
(2,618)

Contributions from the pension cover of persons receiving earnings-related allowances

EUR million
(879)

The figures in parentheses include the figures for 2020. The unemployment insurance contributions collected and the payments to unemployment funds also include the government contributions.

Highlights

Our liquidity remained at a good level despite high unemployment benefit costs

In 2021, unemployment benefit costs were high due to the COVID-19 pandemic, which left our financial result clearly in deficit. The second half of the year saw a reduction in unemployment and increase in employment, and despite the deficit, our result clearly exceeded the estimate in the 2021 budget. We were able to collect unemployment insurance contributions comprehensively and our liquidity remained at a good level through the year.

More people used the adult education allowance to combine study and work

More people used the adult education allowance to combine study and work

In collaboration with the Ministry of Social Affairs and Health, we examined the effects of the adult education allowance reform which came into effect in August 2020. Based on the report completed at the end of 2021, employment during studies among adult education allowance beneficiaries has increased. No changes were observed with regard to the second objective of the reform, which was to increase the use of the adult education allowance among low-skilled or low-paid workers.

We prepared for our move to new office premises

In early 2021, we made the decision to move to new premises in Ruoholahti, Helsinki. Our personnel also had a say in the choice of location, as well as the design of the premises. The outcome was an activity-based office to support today’s working life and facilitate varied ways of working, such as working in silence, co-creation, and phone service work. Operations in the new premises started in early 2022 to the extent that pandemic restrictions allowed.

We finance Finnish working life extensively

The unemployment insurance contributions collected by the Employment Fund are used to finance several essential benefits. This video introduces our cash flows, i.e. where our funds come from and how they are used.