Unemployment funds in Finland overwhelmed by legislative changes and rising job seeker numbers

Changes in legislation and an increase in the number of unemployed individuals are overwhelming some of the major unemployment funds in Finland. For instance, the A-kassa, a public unemployment fund, will exceptionally close its phone services altogether this Wednesday to focus on processing applications.

Several changes to unemployment benefits took effect at the beginning of September, including a tiered system for earnings-related benefits. The number of unemployed and laid-off individuals has also risen, with a total of 279,700 job seekers reported at the end of September—29,900 more than the previous year.

Seasonal unemployment is contributing to the backlog. Yle inquired about the situation from major unemployment funds that handle benefits. The A-kassa currently has a processing time of approximately three weeks, significantly longer than usual. Legislative changes are adding to the overall delays. In September alone, the A-kassa received 30,575 applications for unemployment benefits, up 16% from August, further compounding waiting times.

The A-kassa noted that the end of summer employment and seasonal jobs typically leads to an uptick in applications during the fall. “We also reflect that unemployment is highest in construction and related fields,” stated communications officer Tarja Pitkänen.

The YTK unemployment fund is also facing delays, processing initial applications in about two weeks and renewal applications in roughly one week. However, a positive note comes from a decrease in unemployment among its members, with the rate falling to a yearly low of 5.7% in September, according to CEO Auli Hänninen.

Processing times for new applications in the public and welfare sector unemployment funds mirror those of YTK, around two weeks for new applications and just over a week for renewals. Currently, there are 1,200 pending applications in this category, while the service sector fund reports an average time of 14 days for new applications. Communication officer Juha Rislakki emphasized that recent significant changes in legislation have raised many questions this fall.