When comparing the age distribution of A-kassa member beneficiaries in relation to the overall member age distribution, we see that unemployment is more prominent among older members. For older jobseekers, the situation became increasingly difficult in the beginning of September as a legislative amendment came into effect, removing the age-related exemption rules for unemployment security. This is a second significant legislative amendment that has put older people in a weaker position. The beginning of 2023 already saw the removal of unemployment security extensions, i.e. the so-called early retirement.
In the beginning of September, a legislative amendment came into effect that abolished the age-related exemptions for unemployment security. Protective regulations regarding the level of earnings-related allowance for older jobseekers were removed. Previous legislation stipulated that the amount of earnings-related allowance was not recalculated if a 58-year-old had accrued the employment condition again or a 60-year-old had accrued the employment condition for earnings-related allowance by participating in employment-promoting services.
In the future, unemployed persons 57 years or older no longer have the right to work under the employment obligation or to participate in an employment-promoting service which is based on the employment obligation. Working under the employment obligation no longer accrues the employment condition and income security is no longer paid for the duration of the employment-promoting service which is based on the employment obligation. However, the TE Office or the municipality is obliged to provide work under the employment obligation or an employment-promoting service which is based on the employment obligation, provided that the maximum payment period for income security has ended by September 1, 2024.
Also starting in September, pay subsidy work no longer counts towards fulfilling the employment condition, except for disadvantaged and disabled workers and the long-term unemployed aged over 60. In these cases, the accrual begins only after the first 10 months have passed, and 75% of the months are included in accruing the employment condition.
The staggering of income security, in effect since the beginning of September, concerns those on extensions. They have no possibility, even after fulfilling the employment condition again, to receive full earnings-related allowance. Instead, they will receive reduced daily allowance until retirement. However, the change does not impact allowance periods that have begun before September. Rather, the staggering only applies to benefits that are paid out after September 2, 2024 in accordance with the new 12-month employment condition. If your employment condition has been fulfilled by September 1, 2024 and your daily allowance is based on the old 26-week employment condition, the staggering is not applied.
Age distribution of A-kassa’s beneficiaries.
Age plays a significant role in unemployment
The age distribution of A-kassa’s beneficiaries indicates that unemployment is more prominent in the older age groups. The number of fully unemployed, laid-off persons and recipients of adjusted daily allowance (working part-time during their unemployment) is relatively lower among 45- to 50-year-olds than the number of fund members of the same age. Among those older than 50, the share of laid-off persons and those receiving adjusted daily allowance is higher than the share of fund members of the same age. For those older than 55, the share of fully unemployed exceeds the share of fund members in the same age group. After this age, finding employment seems to become much harder.
According to an unemployment barometer published by the Central Organisation of Finnish Trade Unions, age discrimination is a considerable issue to jobseekers over the age of 50. More than 44% of older respondents feel that age is a key reason for their unemployment. Older applicants are seldom invited to the interview phase and find it more difficult to gain new employment. And what is more, health and lack of competence impact employers’ attitudes towards them.
The older unemployed are facing challenges as the age-related exemptions of unemployment security have been removed and their financial security worsens as their unemployment continues. The staggering of earnings-related allowance, which starts in September, means that prolonged unemployment will often lead to relying on labour market subsidy.
