Our liquidity remained at good level even though the unemployment insurance contributions
were lower than in 2023 and unemployment security
expenditure increased.
Slow economic growth and growing unemployment during the first months of the year have also been reflected in the finances of Employment Fund. As a result, we revised our forecast for change in net position for the current year by projecting higher deficit than previously anticipated.
The level of unemployment insurance contributions collected by Employment Fund was substantially lowered for the year 2024. This was primarily a result of the good financial position of the Fund, accumulation of the business cycle buffer to its maximum amount and the economic and employment outlook. We also took into account the impacts of the cuts made in unemployment security and the abolition of the adult education benefits.
Despite growing unemployment, our liquidity remained good throughout the first half of the year and we have successfully managed all our unemployment security and other social security financing tasks. The employment situation is expected to start improving during the second half of 2024.
JANNE MESTÄMÄKI
Managing Director
The contributions collected and financing contributions paid also include the government contributions. Figures for January – June 2023 are given in brackets.
During the first half of the year, accumulation of unemployment insurance contributions was considerably lower than in the same period in 2023. This was due to a substantial lowering of unemployment insurance contributions for 2024 as we had proposed. Weak economic growth and rising unemployment were also reflected in the Fund’s finances during the early part of the year. We thus revised our performance forecast for 2024 in spring by projecting a larger-than-forecast deficit.
Despite growing unemployment, our liquidity has remained good and we have managed all our financing tasks in unemployment security and other areas of social security.
The share of customers fully or very satisfied with the Fund’s services (CSAT score) averaged 84% during the first half of the year.
Our aim is to continuously develop our activities and improve our services. To boost customer satisfaction, we have launched an overall upgrade of the online service for unemployment insurance contribution matters. In early summer, the Fund also launched a survey among its employer customers to determine the clarity of its services, awareness of them among users and customer satisfaction. We also ask our customers to present proposals for improvements.
For Employment Fund, the first half of 2024 was dominated by the abolition of the adult education benefits as set out in the Government Programme. Their abolition is a major change for the Fund. As a result of the change negotiations prompted by the abolition, a maximum of 73 tasks will be terminated in Employment Fund by summer 2026. These personnel reductions and changes in job descriptions will be implemented gradually as the payment of the adult education benefits is wound down.
Despite a difficult change situation, we have successfully managed our statutory duties, developed our activities and planned for the future. Our personnel deserve thanks for demonstrating change capability and for working together for a common goal.
Our mission is to provide security for changes in working life. We collect the unemployment insurance contributions used to finance such benefits as unemployment security, the earnings-related pensions accrued during periods of unemployment, pay security, and the transition security for persons aged 55 and over. The Fund will grant adult education benefits until the end of 2025.
Employment Fund bases its work on the following values:
Our values guide us in our daily work.
Our strategic goals are as follows:
Under the act abolishing the adult education benefits, no adult education allowances can be granted for studies starting on or after 1 August 2024, and no scholarships for qualified employees can be granted on the basis of vocational qualifications taken on or after 1 August 2024. Funding for the benefits and their implementation will continue until the end of the transitional period specified in the act. Employment Fund will continue to manage its other statutory tasks as before.
Abolition of the adult education benefits and the changes taking place in our operating environment impact the expectations on the Fund and its work. In spring, we launched the work to clarify the identity of the Fund and will continue it in the autumn in cooperation with our personnel. The identity work will also support the strategy update scheduled for late autumn. All this work is aimed at ensuring that we can continue to manage our societally important tasks with maximum success.
