The Employment Fund’s
Half-year Report 2023
1 Jan–30 June 2023
Managing Director’s review
Finland’s economic growth continued to slow down, and the number of announcements concerning change negotiations and lay-offs increased in the first half of 2023. Despite this, employment remained at a good level in Finland and the total of wages and salaries increased, boosting the income from unemployment insurance contributions. We expect the Employment Fund to produce a clear surplus this year, as a result of which our net position, or the Fund’s business cycle buffer, will increase and should exceed its statutory maximum amount already during the current year.
Our liquidity has remained good, and the financing for unemployment benefits has been secured. In June, we paid off one of the two bonds taken out during the COVID-19 pandemic, which amounted to EUR 600 million.
We once again managed to achieve the targets set for our statutory services in the first six months of the year. Thanks for this go to all employees of the Employment Fund. We have had a particular focus on ensuring a good customer experience, increasing automation and improving efficiency. We have also built up the capabilities required by our IT strategy and prepared our key development projects.
Key figures for January–June 2023
Unemployment insurance contributions collected
Adult education benefits paid
Contributions to Kela for persons not covered by unemployment funds
Contributions from the pension cover of persons receiving earnings-related benefits
Key figures for January–June 2022 in parentheses. The unemployment insurance contributions collected and the contributions to unemployment funds also include state contributions.
Finnish economy boosted by a good employment situation
While announcements of change negotiations and lay-offs became more frequent, employment remained at a good level in the first half of 2023. The good employment situation boosted the income from unemployment insurance contributions, as a result of which we expect to produce a clear surplus this year.
Our liquidity remained at good level, and we secured the funding for unemployment benefits. In June, we paid off one of the two bonds taken out during the COVID-19 pandemic, which amounted to EUR 600 million
We improved the e-service for adult education benefits and expanded automation
For the first time in the history of the adult education allowance, we conducted a customer survey to examine the beneficiaries’ main motives for applying for the allowance and the impact of the allowance as experienced by them. Of all respondents, 59% said they applied for the allowance to support a change of careers. In most cases, their plans for changing careers were motivated by a high workload in their current jobs.
The customer survey showed that the beneficiaries use the allowance responsibly and diversely to solve working life challenges
We improved the e-service for adult education allowance and expanded automation
To make using our services easier, we dropped separate application types in the e-service in early 2023 and introduced a single application path on which customers are directed to the next step based on the choices they make.
We also continued to automate the processing of adult education allowance payment applications. Between January and June, 83.4% of all payment applications were handled in an automated process. This was an improvement of 9.7% compared to the previous period. We also introduced automated decision-making on applications for a continued entitlement to the allowance.
We launched the new transition security scheme
The new transition security package for employees aged 55 and over dismissed on production-related or financial grounds was introduced at the beginning of the year. We have actively provided employers with advice on issues related to transition security contributions. The collection and processing of transition security contributions in our new information system was launched as planned.
We finance the transition security package with a transition security contribution levied on employers. The fee consists of two equal parts: a share levied on the employer dismissing their employees and a common share.