The Employment Fund
Press Release
28 January 2020 at 11 a.m
The Employment Fund reports of the financial result for the year 2019. It was the first operating year after Unemployment Fund and Educational Fund merged.
Key points
- Unemployment insurance contributions collected was 2,696 million euros, decrease 11 %
- Other income was 688 million euros, decrease 11 %
- Unemployment benefits paid was 2,473 million euros, decrease 9 %
- Benefits for adult students was 187 million euros, no changes
- Change in net position (profit/loss) was positive 731 million euros
- Net position of the Buffer fund was 1,705 million euros
- Total amount of Investments and assets was 1,786 million euros
- Total amount of Debt and other liabilities was 81 million euros
- Unemployment rate was 6.7 % (estimate), decreased by 0.7 %- points
- Investment return was 0.8 %
Full Year 2019 result, preliminary source: Employment Fund, Statistics Finland
| 1.1.2019 - | 1.1.2018 - | Change | |
| 31.12.2019 | 31.12.2018 | 2019/2018 | |
| EURm | EURm | EURm | |
| Unemployment insurance contributions | 2,696 | 3,027 | -331 |
| Contributions from Ministry of Social Affairs and Health | 688 | 774 | -86 |
| Unemployment benefits (paid) | -2,473 | -2,735 | -262 |
| Benefits for adult students (paid) | -187 | -187 | 0 |
| Investment and Financing income, net | 7 | -7 | 14 |
| Profit/loss | 731 | 872 | |
| Investments and assets | 1,786 | 1,687 | 99 |
| Debt and liabilities | -81 | -718 | 637 |
| Buffer Fund | 1,705 | 969 | 736 |
| Statutory limit for Buffer | 2,064 | 2,032 | |
| Unemployment rate % | 6.7 | 7.4 | -0.7 % |
| Change in wage sum % (est.) | 4.1 | 4.5 | -0.4 % |
| Investment return % | 0.8 | -0.2 | |
| Contribution %, employers | 1.50 | 1.91 | -0.41 % |
| Contribution %, employees | 1.50 | 1.90 | -0.40 % |
The figures for 2019 are unaudited
* includes net investment income, funding costs and other financing income and costs
The Economic Growth Continued and Unemployment Decreased
In 2019, the gross output of the Finnish economy grew by about 2 per cent. Employment continued to improve and unemployment declined respectively. The unemployment rate dropped to its lowest level since the times before the financial crisis of 2008 - 2009, reaching 6.7%. The growth of wages and salaries slowed down slightly, setting approximately to 4.1%.
Funding of the Unemployment Benefits Continues to Decline
Improvement of the employment situation reduced expenditure on unemployment allowances and other earnings-related unemployment benefits by 9% in 2019. The unemployment insurance contributions collected by the Employment Fund decreased by 11% compared to the previous year. The decrease in the premiums collected was mainly due to the improved employment situation in Finland, which has led to a reduction in total unemployment insurance premiums.
The Amount of Adult Education Benefits Paid Remained at the Same Level
Adult education allowances and scholarships for qualified employees were granted in the amount of EUR 187 million in 2019. The total amount of adult education benefits paid remained the same as a year earlier.
Slight Growth in the Number of Recipients of Adult Education Allowance, while the Number of Scholarships for Qualified Employees Decreased
A total of 25,701 people received adult education allowance, which was about 3.4 per cent more than in 2018. The number of scholarships for qualified employees granted decreased from the comparison year 2018. Last year, 26,245 persons were awarded with a scholarship for qualified employee, which is about 15.4 per cent less than a year earlier.
The Net Assets of the Employment Fund Continued to Grow
The change in net assets for 2019 was EUR 731 million. Employment Fund has made a surplus of over EUR 2 billion over the last three years. At the same time, unemployment insurance contributions have been reduced annually. As of December 31, 2019, net assets were positive at EUR 1,705 million and the business cycle buffer's maximum amount specified by law was approximately EUR 2.1 billion. As a result of the new law, the maximum amount for the business cycle buffer was changed in 1 January 2020 to EUR 1.8 billion.
The Outlook for 2020 Is Positive
The number of unemployed jobseekers is estimated to remain close to the level of the previous year. The total amount of funded unemployment benefits is estimated to increase slightly in 2020. The total amount of unemployment insurance contributions was reduced by 0.49 percentage points for 2020. According to the Employment Fund's budget, the change in net assets would be positive by around EUR 107 million in 2020.
The Employment Fund will publish its Annual Report 2019 on Thursday, 26 March 2020, and provides a revised outlook for the year 2020 at the same time.
Helsinki, 28 January 2020
Employment Fund
Additional information:
Janne Metsämäki, Managing Director, +358 40 522 3614, janne.metsamaki(a)tyollisyysrahasto.fi
Tapio Oksanen, Chief Financial Officer, +358 40 539 4651, tapio.oksanen(a)tyollisyysrahasto.fi
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