2019 in brief

Contributions and allowances

Unemployment insurance contributions were reduced

The introduction of the Incomes Register marked a transition to the assessment and invoicing of unemployment insurance contributions on the actual earnings model for the vast majority of payers. It was possible to reduce unemployment insurance contributions due to the strong economy and good rate of employment. Contributions were collected from employers in a total amount of EUR 1,277 million, and a total of EUR 1,379 million was collected from employees.

Unemployment insurance contributions collected, employers (EUR million)

This graph shows the unemployment insurance contributions collected from employers by the Employment Fund in the last five years (2015–2019). The amount collected from employers in contributions has decreased every year since 2015. In 2015, the Employment Fund collected a total of EUR 1,697 million in unemployment insurance contributions from employers. In 2019, a total of EUR 1,288 million was collected in contributions.

Unemployment insurance contributions collected, employees (EUR million)

This graph shows the unemployment insurance contributions collected from employees by the Employment Fund in the last five years (2015–2019). The contributions collected from employees rose every year from 2015 to 2018. In 2019, the amount of employee contributions decreased. In 2015, the Employment Fund collected a total of EUR 490 million in unemployment insurance contribution from employees, in 2016 it collected approximately EUR 870 million, in 2017 it collected approximately EUR 1,242 million, in 2018 it collected approximately EUR 1,519 million, and in 2019 it collected a total of EUR 1,401 million.

Adult education benefits to boost competences among employees

Adult education benefits consist of adult education allowances and scholarships for qualified employees. In 2019, adult education allowances were paid to 25,701 people in a total amount of EUR 176.5 million. The number of beneficiaries increased by 3.4% compared with 2018. A total of 26,187 scholarships were granted to qualified employees.

Adult education allowance recipients,
men and women (%)

This graph shows the gender distribution of the beneficiaries of adult education allowances. In 2019, a clear majority of the beneficiaries of adult education allowances were women. Last year, 25% of all beneficiaries of adult education allowances were men, and 75% were women.

Adult education allowance recipients,
by age group (%)

This graph shows the beneficiaries of adult education allowances in each age group. Last year, just over half of the beneficiaries of adult education allowances were aged between 30 and 39. Of all the beneficiaries of adult education allowances in 2019, 10% were aged 25–29, 27% were aged 30–34, 25% were aged 35–39, 17% were aged 40–44, 10% were aged 45–49, 7% were aged 50–54, and 3% were aged 55–59.

Financial figures

The business cycle buffer balances out fluctuations

In accordance with chapter 1, section 3 of the Act on the Financing of Unemployment Benefits, in order to ensure liquidity and balance out changes in unemployment insurance contributions due to foreseeable economic fluctuations in the national economy, the Employment Fund maintains a business cycle buffer. The statutory maximum value of the business cycle buffer changed on 1 January 2020, and it now corresponds to the annual expenditure for an unemployment rate of six percentage points.

Development of the business cycle buffer (EUR million)

This graph shows the change in the net position of the Employment Fund’s business cycle buffer, as well as the minimum and maximum size of the buffer as required by law over the last five years (2015–2019). The net position of the business cycle buffer has increased every year since 2015. In 2015, the net position of the business cycle buffer was EUR -684 million, the maximum size permitted by law was EUR 1,521 million, and the minimum size permitted by law was EUR -1,521 million. In 2019, the net position of the buffer was EUR 1,700 million, the maximum size permitted by law was EUR 2,064 million, and the minimum size permitted by law was EUR -2,064 million.

Recipients of payment settlements (%)

This graph shows the allocation of financing payments by the Employment Fund to various recipients. Of all the financing payments made by the Employment Fund in 2019, 35% consisted of payments to unemployment funds, 26% were government contributions payable to unemployment funds, 21% were payments to the Finnish Centre for Pensions, 8% were payments to the Social Insurance Institute (Kela), 7% were adult education allowance expenses, 1% were payments to the Ministry of Economic Affairs and Employment, 1% were the Employment Fund’s administrative expenses, and 0.4% were payments to the State Pension Fund.

Key figures

EUR million	2015	2016	2017	2018	2019	Change (EUR million)	Change (%)
INCOME
Employer contribution income	1,626	2,043	1,769	1,458	1,238	-220	-15.1%
Employee contribution income	490	870	1,243	1,519	1,379	-140	-9.2%
Government contribution, funds	1,142	1,102	945	774	688	-86	-11.1%
Liability component income	73	66	54	50	39	-11	-22.0%
Net financial income	-1	-4	-5	-7	8	15
TOTAL INCOME	3,330	4,077	4,006	3,794	3,353	-442	-11.7%
EXPENSES
Unemployment funds	-1,703	-1,581	-1,320	-1,068	-954	-114	-10.7%
Government contribution, funds	-1,142	-1,102	-945	-774	-685	-89	-11.4%
Finnish Centre for Pensions	-900	-846	-768	-620	-577	-43	-6.9%
Social Insurance Institution of Finland (Kela)	-121	-167	-208	-228	-206	-22	-9.8%
Adult education benefits **	-98	-116	-151	-187	-187	0	-0.1%
Ministry of Economic Affairs and Employment	-21	-23	-19	-20	-24	4	19.2%
State Pension Fund	-8	-11	-13	-12	-10	-2	-16.8%
Insurance companies	-1	-1	0	0	0	0
Administrative expenses	-10	-12	-11	-13	-19	6
TOTAL EXPENSES	-4,003	-3,859	-3,435	-2,921	-2,659	-261	-8.9%
INCOME FOR THE PERIOD	-673	220	572	872	694	-178
NET POSITION *	-686	-466	106	969	1,668	699

* The net position for 2019 includes the value of the net assets of the Education Fund on 31 December 2018.

** Known as the Education Fund until 2018.

Investments

Responsible investment activities

The Employment Fund carries out investment activities to the extent necessary to manage the timing differences in the cash flows generated by its income and expenses, and for liquidity management purposes. We comply with the principles of responsible investing.

The value of investment and financial assets held by the Employment Fund amounted to EUR 1,019 million at the end of 2019 (EUR 1,687 million in 2018).

Investment spread (%)

This graph shows the distribution of the Employment Fund’s invested assets among various investments. Last year, the majority of the assets were invested in money markets and bonds. At the end of the 2019 financial period, EUR 446 million of the Fund’s assets were invested in money market instruments, EUR 536 million in bonds, EUR 18 million in equities and EUR 19 million in alternative investments.

Return on investments (%)

This graph shows the return on the Employment Fund’s invested assets and the reference rate of return on the market in per cent. In 2015, the return on the Employment Fund’s invested assets was 0.2% and the reference rate of return on the market was 0.2%, in 2016 the return was 0.3% and the reference return was -0.1%, in 2017 the return was 0.1% and the reference return was -0.3%, in 2018 the return was -0.1% and the reference return was -0.6%, and in 2019 the return was 0.8% and the reference return was 1.9%.