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Fewer people applying for earnings-related unemployment allowance during summer

News

5.7.2023

In June, the Open Unemployment Fund A-kassa received 22,162 earnings-related unemployment allowance applications. The number was over 20% lower than in May. In May, the number of applications received was also lower than in the previous month, so the trend towards summer is declining. Of the June applications, 8.1% were first-time applications.

The number of members receiving earnings-related unemployment allowance also decreased from the previous month. In June, earnings-related unemployment allowance was received by 19,151 members, which was 3,395 fewer than in May. The number of recipients increased by 10% compared with the same period last year. In June, 8.4% of the members of the Open Unemployment Fund A-kassa received earnings-related unemployment allowance.

Of all the recipients, 26.9% were temporarily laid-off. The downward trend in the share of laid-off earnings-related unemployment allowance recipients that started in March will thus continue. In June, a total of 5,145 members received unemployment allowance during the lay-off period, of whom 16% were women and 84% men.

The number of recipients of the adjusted unemployment allowance has not changed much since the beginning of the year, and the past June has been no exception to that. In June, 3,603 members received adjusted unemployment allowance. The share of recipients continued to rise slightly and stood at 18.8% in June, which is the highest number this year.

Earnings-related unemployment allowances paid in June amounted to EUR 26.2 million, which is EUR 8.1 million less than in May. However, compared with the corresponding period of last year, the amount of earnings-related unemployment allowances paid was now 11% higher. The cumulative amount of unemployment allowances paid from January to May was EUR 200.7 million, which is 3.1% more than in the same period last year.

The average number of days paid in May was 18.8, which is 1.5 days less than in May and one day less than in May last year.

Typically, most mobility allowance is paid between April and September, and in June the amount of applicants was even higher than in May. The development of the amount follows the previous year’s pattern, so in July the number is likely to start declining. In June, 212 members received job alternation compensation and 25 received restructuring protection allowance. It has been possible to apply for restructuring protection allowance since January 2023.