in 2023, Finland experienced a noticeable increase in unemployment fund claims, mainly due to an increase in layoffs in various sectors. According to the Open Unemployment Fund (Avointyöttömyyskassa), the number of applicants receiving unemployment benefits increased by 18.9% compared to 2022, totaling 55,092 people. This increase was particularly noticeable in the second half of the year.
Kaisa TikkaThe Open Unemployment Fund benefits manager stressed that the impact of the economic downturn on industries such as construction and manufacturing led to a sharp increase in applications and recipients from these sectors. Interestingly, the increase in claims was not limited to these areas; other areas also saw significant increases compared to the previous year.
In December 2023 alone, 25,208 applicants received unemployment benefits, an increase of 40.9% compared to the same period in 2022. This represents more than 11% of the fund’s membership and is an increase of 3.4 percentage points from December 2022.
A key finding of this study is that the proportion of furloughed workers among benefit recipients has increased significantly. In 2023, 48.9% of benefit recipients were laid off, compared to 33% in 2022. This trend was particularly noticeable from August onwards and continued until the end of the year.
The Fund also observed a significant increase in first-time applications, with 39,904 filed in 2023 compared to 25,517 in 2022. Adjustment applications also increased, totaling 96,900 in 2023 compared to 82,280 the previous year. Nevertheless, the proportion of people receiving adjusted unemployment benefits decreased slightly from 25.2% in 2022 to 21.1% in 2023.
Total unemployment benefit payments also increased significantly in 2023, reaching €378.7 million, €48.2 million (or 14.6%) more than in 2022. However, the average number of benefit days per beneficiary decreased slightly. This reduction is due to the nature of layoffs, which are typically short-term and non-continuous, resulting in fewer days of benefit payment compared to longer periods of unemployment.
Additionally, legal changes that came into effect in early 2024, including cuts to unemployment benefits, have led to an increase in inquiries and concerns among the Fund’s members. Mr Tikka expressed particular concern about the cumulative impact of these cuts, particularly on families with children, and stressed the importance of closely monitoring these impacts.
This surge in unemployment fund claims and layoffs reflects the broader economic challenges facing Finland in 2023 and highlights the need for continued support and adaptation in the face of changing labor market dynamics. ing.
HT