Backlogs grow at Finnish unemployment funds amid recent legislative changes

Recent legislative changes and a rise in unemployment have led to significant backlogs at several major unemployment funds in Finland. For example, A-kassa, an unemployment fund, has temporarily shut down its phone services this Wednesday to focus on processing applications.

Multiple changes to unemployment benefits came into effect at the beginning of September, such as the adjustment of earnings-related benefits. Consequently, the number of unemployed job seekers rose, totaling 279,700 by the end of September, representing an increase of 29,900 compared to the previous year. Seasonal unemployment has further worsened the situation.

In response to the congestion, Yle inquired with several unemployment funds regarding claims processing. A-kassa now estimates a processing time of about three weeks, which exceeds the usual timeframe significantly. In September alone, A-kassa received 30,575 applications for unemployment benefits, marking a 16% increase from August, contributing to the delays. Notably, applications usually rise in autumn as seasonal jobs conclude, particularly affecting construction and related industries, as highlighted by communications officer Tarja Pitkänen.

The YTK unemployment fund is also experiencing delays, with initial applications being processed in approximately two weeks and subsequent applications in about a week. However, there is a silver lining, as the unemployment rate among its members dropped significantly in September to its lowest annual level of 5.7%, according to CEO Auli Hänninen.

Processing times for new applications at public and welfare sector unemployment funds mirror those of YTK, averaging around two weeks for initial claims and just over a week for follow-ups. Currently, there are 1,200 pending applications. The impact of the major legislative changes has spurred a surge of inquiries from members, as stated by communications manager Juha Rislakki.