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Employment Fund: Unemployment Insurance Fund's (TVR) preliminary results for Year 2018

STOCKNEWS 29.1.2019 11.31

Employment Fund     Stock Exchange Release     29 January 2019 at 11:30                                                              

Employment Fund: Unemployment Insurance Fund's (TVR) preliminary results for Year 2018

Employment Fund reports of the financial result of the Unemployment Insurance Fund (TVR) for the year 2018. Employment Fund started its operations 1 January 2019 when TVR and Education Fund merged.

Key points

·           Unemployment insurance contributions collected was 3,032 million euros, decrease 1 %
·           Other income was 774 million euros, decrease 18 %
·           Benefits paid including administration expenses was 2,940 million euros, decrease 14 %
·           Change in net position (profit/loss) was positive 859  million euros
·           Net position of the Buffer fund was 956 million euros
·           Total amount of Investments and assets was 1,669 million euros
·           Total amount of Debt and other liabilities was 713 million euros
·           Unemployment rate was 7.4 % (estimate), decreased with 1.2 %- points
·           Investment return was 0.2 % negative

Full Year 2018 result, preliminary   Source:  Unemployment Insurance Fund, Statistics Finland
         
  1.1.2018 - 1.1.2017 - Change  
EURm 31.12.2018 31.12.2017 2018/2017  
      million euros  
         
Unemployment insurance contributions 3,032  3,057  -26   
Other income * 774  945  -170   
Benefits paid incl. admin. expenses -2,940  -3,434  494   
Investment and Financing income, net -7  -5  -2   
Profit/loss 859  563  296   
         
Investments and assets 1,669  1,116  553   
Debt and liabilities -713  -1,018  305   
Buffer Fund 956  97  859   
Statutory limit for Buffer 2,049  2,026     
         
Unemployment rate % 7.4  8,6  -1.2   
Change in wage sum % (est.) 4.5  1.8  2.7   
Investment return % -0.2  0.1     
Contribution %, employers 1.91  2.41  -0.50   
Contribution %, employees 1.90  1.60  0.30   
The figures for 2018 are unaudited    
*  contributions from MSAH        
** includes net investment income, funding costs and other financing income and costs

Solid performance of the economy and improving employment

Finnish economy grew well during 2018. Higher economic activity boosted employment and reduced unemployment. The average rate of unemployment decreased by one percentage point and almost reached the level seen only before the financial crisis.

Total amount of benefits paid decreased substantially

The amount of unemployment benefits and other benefits connected to wage-related unemployment insurance decreased by fourteen percent. The amount of unemployment insurance contributions collected decreased by one percent compared to financial year 2017.

The net position of TVR clearly positive

The change in net position in year 2018 was positive 859 million euros. This is the largest positive result in the history of TVR. The net position of the Unemployment Insurance Fund in 31 Dec 2018 was positive 956 million euros. The statutory maximum of the buffer fund was 2,049 million euros.

Outlook for the year 2019 remains positive

The number of persons unemployed is expected to decrease slightly during the year 2019. The total amount of Unemployment Insurance Contributions for the year 2019 decreased by 0.8 percentage points. According to the budget it is stated that the change of the net position to be positive 335 million euros in 2019. Employment Fund is in a better capacity to give out estimates regarding the development of unemployment in Finland and its operations in March 2019 (week 12) when it is due to present the Full-year report for 2018.

Additional  information:

Janne Metsämäki, Managing Director. tel. +358 40 522 3614
Tapio Oksanen, Chief Financial Officer tel. +358 40 539 4651

Helsinki, 29 January 2019

Employment Fund

Tapio Oksanen
Chief Financial Officer

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