The Employment Fund’s
Half-year Report 2022

1 Jan–30 Jun 2022

Managing Director’s review

Economic growth got off to a good start but was slowed down by war

After two years of COVID-19 pandemic, the Finnish economy was growing strongly and employment developed favourably, reaching a good level in early 2022. The reduction in unemployment began to be reflected in the Employment Fund’s result, as unemployment security expenses decreased.

The economic outlook took a marked turn for the worse as Russia launched its military aggression against Ukraine in late February. The impacts of the war are reflected in the global and Finnish economy in many ways. The Employment Fund also revised its estimated result for 2022 downwards. Employment continued to develop positively in January–June, however, and in our most recent forecasts made after the review period, we have adjusted the outlook for the next few months upwards. It would appear that the negative impacts on the economy and employment of the war in Ukraine and its consequences will be felt with a delay.

Since the war started, we have increased our preparedness for various threats arising from it. We have intensified our financial monitoring and reporting to the Finnish Financial Supervisory Authority further. We have also increased our preparedness level for cyber security threats and invested in our personnel’s coping and well-being in the challenging new situation.

Despite the exceptional times, we managed to achieve the targets set for delivering our statutory services in the first six months of the year. The customer satisfaction with the Fund’s services was good and, for example, the degree of automation in processing payment applications for adult education allowance has reached an excellent level. Thanks for their good work go to all employees of the Employment Fund.

Our liquidity has remained good, and the financing of unemployment benefits has been secured. We renewed our revolving credit facilities in early 2022, which helped to secure our liquidity further.

Janne Metsämäki, Managing Director of the Employment Fund, is holding a tablet in his hands and smiling.

Managing Director

Key figures in January–June 2022

Unemployment insurance contributions collected

million euros

Adult education benefits paid

million euros

Contributions to Kela for
persons not covered by
unemployment funds

million euros

Contributions to

million euros

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

million euros

Key figures for January–June 2021 in parentheses. The unemployment insurance contributions collected and the contributions to unemployment funds also include state contributions.


We improved adult education benefit services

In March, we launched a dedicated website for adult education allowance. Our aim is to deliver an even better service to our customers, simplify issues related to applying for the allowance, and spread information about the benefits of adult education allowance more widely among employees, employers and entrepreneurs.

In spring 2022, the degree of automation in processing adult education allowance payment applications increased by 14.8 percentage points compared to spring 2021. Thanks to our development work, approx. 74% of the payment applications were processed by automation.

A new financing task for the Fund

A new restructuring protection package for employees aged 55 and over who are terminated for production-related and financial reasons will be introduced in January 2023. We will finance this package with a restructuring protection fee levied on employers, which consists of two equal parts: a share levied on the employer dismissing their employees and a common share. The common share will be funded by increasing the unemployment insurance contribution paid by all employers. As part of our preparations for the task of financing the restructuring protection package, we have built a new information system for levying the fee.

We moved into new offices

We moved into our new offices in Ruoholahti, Helsinki in early January 2022. A multi-space solution which supports different modes of working and meetings was selected for the new premises. Our offices have facilities for quiet work, co-working and a telephone service. Fund employees enjoy working in the new office, and the feedback has been positive.

Employment continued to develop positively in Finland

As a result of Russia’s attack on Ukraine, we adjusted downwards our estimate of economic and employment development in Finland in 2022. In March we expected to produce a deficit this year. Despite the uncertainties brought about by the war, employment continued to develop positively throughout the review period, and the latest estimates indicate that the Fund would show a surplus at the end of the year.