In March, the number of recipients of earnings-related allowance from Open Unemployment Fund increased by 5% compared to February but was still 12% lower than a year earlier. The number of applications rose clearly from February, with a notable increase in initial applications. Overall, however, the number of applications was 9.3% lower than in March last year. The share of laid-off members rose to 40%. Data from early April suggests that the increase in March will be temporary and that the number of recipients is turning downward. Typically, the number of earnings-related allowance recipients decreases towards the summer.
Clear increase in the number of applications
In March, 26,927 A-kassa members received earnings-related allowance, which is 12.2% fewer than a year earlier. Compared to February, the number of recipients increased by 5%. The share of allowance recipients among members was 11%.
A total of 37,280 applications were submitted in March, which is 26.8% more than in February. The increase is partly explained by the higher number of days in March. Compared to the previous year, however, the number of applications was 9.3% lower.
– Although fewer applications have been submitted at the beginning of the year than in the two previous years, the trend follows a familiar seasonal pattern. The number of applications usually declines towards spring and summer, indicating an improvement in the employment situation, says Kaisa Tikka, Director of Administration of A-kassa.
Increase in first applications
In March, 2,367 first applications were submitted, which is 20.7% more than in February and 20.1% more than a year earlier. First applications accounted for 6.3% of all applications. The share decreased slightly from February but remained higher than a year earlier. The month-on-month increase in first applications is also partly explained by the higher number of days in March compared to February.
Share of laid-off members increased
In March, there were 10,904 laid-off members, which is 9.3% more than in February but 9.5% fewer than a year earlier. The share of laid-off members among all recipients rose to 40%.
However, data from early April indicates a turning point. By mid-April, 4,906 members were receiving allowance during lay-off, corresponding to 32% of all recipients.
– The increase in the share of laid-off members shows that uncertainty is still visible in companies’ day-to-day operations. At the same time, the figures for April suggest that the situation is not deteriorating and may already be improving, says Kaisa Tikka.
Expenditure on earnings-related allowance increased from the previous month
In March, a total of EUR 35.8 million in earnings-related allowance was paid, which is 8.5% more than in February. Compared to a year earlier, expenditure was 12.9% lower.
The average number of paid days in March was 19.2, which is 0.9 days more than in February and 1.4 days more than in March last year.
Number of recipients declining in April
By mid-April, 15,108 members had received earnings-related allowance. This is clearly lower than both mid-March and the same time a year earlier. In mid-March, there were 17,025 recipients, and over the entire month of March, a total of 26,927 members received allowance. A year earlier, there were 21,345 recipients in mid-April, meaning the current figure is as much as 29.2% lower.
Most A-kassa members work in industry, construction, and the automotive and transport sectors. The statistics therefore primarily reflect developments in these industries. Changes in the number of recipients may be influenced not only by the general employment situation but also by legislative changes in unemployment security, such as changes to the employment condition and the rules governing earnings-related allowance.
