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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.
· 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|
|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|
|Investments and assets||1,669||1,116||553|
|Debt and liabilities||-713||-1,018||305|
|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.
Janne Metsämäki, Managing Director. tel. +358 40 522 3614
Tapio Oksanen, Chief Financial Officer tel. +358 40 539 4651
Helsinki, 29 January 2019
Chief Financial Officer
NASDAQ OMX Helsinki
As a result of the negotiations, the Fund will reduce the total number of jobs by 9.
The total contributions would therefore amount to between 2.4% and 3.0% of workers’ wages.