In 2023, a total of 55,092 applicants received earnings-related allowance from the Open Unemployment Fund. The number of recipients increased by 18.9% from 2022, remaining in line with the previous year before taking an upward turn in August. The share of laid-off persons in relation to recipients of earnings-related allowance was 48.9% in 2023, compared to 33% in 2022.
– Members of the A-kassa represent various lines of business. However, a large number of the members are industrial or construction workers who have been heavily impacted by the struggling economy of the past year. The increasing number of both applications and recipients has been particularly evident in the construction industry, but the increase from the previous year can also be attributed to industrial sectors and other business areas, says A-kassa’s Benefit Manager Kaisa Tikka.
In December 2023, earnings-related allowance was paid out to 25,208 applicants which represents a 40.9% increase from December 2022. The number of recipients amounts to more than 11% of all A-kassa members, an increase of 3.4% compared to previous December. Overall, a total of 55,092 applicants received earnings-related allowance from the Open Unemployment Fund in 2023, up by 18.9% from 2022.
Significant increase in share of laid-off persons
In 2023, the share of laid-off persons increased significantly from the previous year. In December, the share of laid-off persons was up to 40% of all applicants. The share of laid-off persons in relation to recipients of earnings-related allowance was 48.9% in 2023, up from 33% in 2022. The share of laid-off persons began to increase rapidly after August and continued to go up until the end of December.
Last year, the fund received 39,904 first-time applications, up from 25,517 in 2022. As for applications for adjusted allowance, last year’s number reached a total of 96,900, up from 82,280 in the previous year. Adjusted earnings-related allowance was granted to 21.1% of applicants in 2023, down from the previous year’s share of 25.2%.
Major increase in amount of paid out earnings-related allowances
The amount of paid out earnings-related allowances increased in 2023. For the year, earnings-related allowances amounted to 378.7 million euros, an increase of 48.2 million (14.6%) from the previous year.
The average number of days earnings-related allowance was paid out to beneficiaries decreased slightly from the previous year. In 2023, the number of days was 92, down from 102 in the previous year. This decrease is explained by the increase in layoffs. Layoffs are typically short and non-continuous, which decreases the number of payout days compared to longer unemployment periods.
Changes in legislation for 2024 evident in enquiries
The first cuts to unemployment security planned by the Government came into effect in early 2024. Interest towards the law reform has been evident in the number of enquiries received by the fund, and the reform has also caused concern among the members of the unemployment fund.
– The fund keeps a close eye on the joint effect of the cuts. They will result in decreased income levels for many unemployed persons. However, fund members’ income security remains at a better level than what the basic unemployment allowance can provide. The fund is particularly concerned about the weakened position of families with children, says Tikka.
More information on changes to legislation
