Concepts: Statistics on unemployment protection in Finland

Unemployment protection

As used in these statistics, ‘unemployment protection’ refers to the unemployment benefits paid by unemployment funds or by the Social Insurance Institution of Finland (Kela) to persons who are either unemployed or participating in employment promotion services. The commuting and relocation allowance and job alternation compensations are also included.

‘Earnings-related benefits’ refers to the benefits paid by the unemployment funds, while ‘basic benefits’ refers to the benefits paid by Kela.

Unemployment benefit

In these statistics, ‘unemployment benefit’ refers to the unemployment allowance and the labour market subsidy. The unemployment allowance is paid by unemployment funds in the form of an earnings-related allowance and by Kela as a basic allowance.

Statistical indicators

Recipient

Two different concepts of ‘recipient’ are used in this publication: the number of recipients during the year and the number of recipients at the end of the month. The former includes anyone who received unemployment benefits in the reference year, while the latter counts individuals who were in receipt of unemployment payments on the last day of a given reference month.

Days

References to days represent the number of days for which unemployment benefit was paid. Unemployment benefits are paid for five days a week (Monday to Friday). Days/recipient is the ratio between the number of days and the number of recipients.

Expenditure

Expenditure refers to the amount of benefits paid in the reference year expressed in euro. Returns of benefit are accounted for, which ensures that the benefit payment data shown in the statistics correspond to the information in the accounts. Euros/day is the ratio between the amount of benefits paid and the number of days on benefit.

Length of spell

The length of spells of unemployment is shown in calendar weeks as the length of ongoing spells of unemployment at the end of the reference year. Five consecutive days of payment are counted as one week. If the payment of a benefit is disrupted for more than 9 days, a new spell of unemployment is considered to begin. Spells of labour market subsidy include any days on basic unemployment allowance.

Classifications

Age

The age of benefit recipients is recorded as their age at the end of the year.

Region

The division of regions and municipalities corresponds to the situation at the end of the reference year. In the analyses by region, persons who live outside Finland are only included in the figures for the whole country.

The figures for the Åland Islands include earnings-related benefits only, as the basic benefits are provided by the Government of Åland.

With respect to the benefits paid by unemployment funds, the recipient’s place of residence has been determined from the recipient’s residential postal code. The place of residence is recorded in the statistics as the municipality in which the recipient lived at the time of his/her final benefit payment of the reference year.

With respect to the benefits paid by Kela, the recipient’s place of residence comes from Kela’s register of demographic and residential data as at the end of the reference year.

Maximum duration of payment

In the reference year, the maximum eligibility limit for the earnings-related unemployment allowance and the basic unemployment allowance was reached when a benefit had been paid for the maximum period of the unemployment allowance. It can be 300, 400 or 500 days. The day on which the maximum eligibility limit is reached is determined from the information stored in the benefit processing systems.

Degree of unemployment

Recipients of unemployment benefits are in this publication divided into such categories as those completely without work and those on adjusted benefit. The data on earnings-related unemployment allowances distinguish between allowances for those completely without work, for those who are laid off temporarily, and for the self-employed. Subcategories of the labour market subsidy include the subsidy reduced by other benefits and the partial labour market subsidy.