Expenditure on unemployment benefits grew in 2024 – highest number of recipients in Eastern Finland

Expenditure on unemployment benefits amounted to EUR 4,000 million in 2024. Unemployment funds accounted for a total of EUR 2,088 million (earnings-related benefits) and Kela for EUR 1,912 million (basic unemployment benefits) of this total.

The expenditure on unemployment benefits increased by 5% from 2023. The expenditure on earnings-related benefits grew by 10.6%, while the expenditure on basic unemployment benefits decreased by 1.0%. In real terms, the expenditure on unemployment benefits grew by 3.1% compared with 2023. The number of compensated days grew by 7.5% for earnings-related benefits and by 4.5% for basic unemployment benefits.

At the end of 2024, the total number of recipients of unemployment benefits was 334,068, which represented 9.9% of the Finnish population between ages 17 and 64 at that point in time. The number of recipients grew by 6,305 from 2023.

Altogether 122,512 recipients received earnings-related unemployment allowance, which marks a decrease of 6,636 recipients compared to the previous year. At the end of 2024, the recipients of basic unemployment allowance numbered 33,760. The number of recipients decreased by 1,453 from the previous year. At year-end 2024, the number of recipients of the labour market subsidy totalled 176,133, which marks an increase of 14,542 recipients compared to the previous year.

The year 2024 saw the implementation of several legislative changes that affected unemployment benefits. For example, the monthly exempt amount of EUR 300 that applied to unemployment benefits as well as the child increase previously available for the labour market subsidy, basic unemployment allowance and the commuting and relocation allowance were removed as of 1 April 2024.

“Although the number of recipients of earnings-related benefits was smaller and that of recipients of basic unemployment benefits higher at the end of 2024 compared with year-end 2023, when we look at the statistics for the entire year of 2024, there were more recipients of both earnings-related benefits and basic unemployment benefits than in 2023,” says Laura Peutere, Senior Researcher at Kela.

Peutere also notes that only the expenditure on earnings-related benefits grew compared with 2023, while expenditure on basic unemployment benefits decreased. The cuts made to unemployment benefits can affect the figures in various different ways.

“As the amount paid in basic unemployment benefits is smaller than that paid in earnings-related benefits, for example the impact of the removal of the exempt amount and the child increase may affect the expenditure on basic unemployment benefits more clearly than the expenditure on earnings-related benefits,” says Peutere.

The percentage of unemployment benefit recipients varied to a significant degree between municipalities. The majority of benefits were paid to recipients in Eastern Finland. In Juuka, 18.1% of the total population received unemployment benefits, while in Luoto, the percentage was only 2.5.

The abolishment of the job alternation system prompted more to apply

Job alternation leave was abolished as of 1 August 2024, which means that the last day to begin job alternation leave was 31 July 2024.

The number of recipients of job alternation compensations totalled 8,382 in 2024, which was 64% more than in the previous year. The majority of the recipients (5,630) were women. Most recipients of job alternation compensations were between the ages of 55 and 59.

Job alternation compensations were paid out to the amount of EUR 50 million in 2024, which marked a 97% increase compared with 2023.

More information

Statistical Yearbook on Unemployment Protection in Finland 2024

Unemployment benefits: Statistical charts