Unemployment Insurance Fund's preliminary results for Year 2017

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Unemployment Insurance Fund's preliminary results for Year 2017
Strong economical growth impacted also Unemloyment Insurance Fund's (TVR) net position positively

Unemployment Insurance Fund     Stock Exchange Release     30 January 2018 at 12:00            


Key points

  • Unemployment insurance contributions collected was 3.066 million euros, increase 3 %
  • Other income was 945 million euros, decrease 14 %
  • Benefits paid including administration expenses was 3.434 million euros, decrease 11 %
  • Change in net position (profit/loss) was  572  million euros
  • Net position of the Buffer fund was 106 million euros
  • Total amount of Investments and assets was 1.148 million euros
  • Total amount of Debt and other liabilities was 1.042 million euros
  • Unemployment rate was 8,6 % (estimate), decreased with 0,2 % -points
  •  Investment return was 0,1 %

Full-year result 2017 (estimate)  source: TVR, Statistics Finland
Amounts %     2 016  2017 e 
30.1.2018 		2018 B
         
Unemployment rate   8,8         8,6           8,3 
Wage sum growth p.a.   1,2         1,8           1,5 
UIC, employers (average)   2,87         2,41           1,91 
UIC, employees     1,15         1,60           1,90 
         
Key Figures, EURm *      
         
Unemployment Insurance Contributions   2 976       3 066         2 975 
Other income *     1 102       945         956 
Benefits paid   - 3 858      - 3 434       - 3 534 
Change in net position   220       572         397 
Net position   - 466       106         349 
Maximum limit for buffer   1 566       2 026       2 174 
*  figures for 2017 are unaudited      
**  contributions from MSAH      

Strong economy led to improving employment

Finnish economic growth was strong during 2017 and all major sectors contributed positively to this development. Unemployment rate decreased and especially the number of persons unemployed decreased markedly. Employment continued to improve and the total sum of wages paid grew. The official rate of unemployment decreased by 0,2 percentage points (8,8 => 8,6 %).

Total amount of benefits paid decreased substantially

The amount of unemployment benefits and other benefits connected to wage-related unemployment insurance decreased by eleven percent. The amount of unemployment insurance contributions collected grew based on improving employment by three percent compared to financial year 2016.

The net position of TVR positive

The change in net position in year 2017 was 572 million euros. This is the largest positive result in the history of TVR. The net position of the Unemployment Insurance Fund in 31 Dec 2017 was positive 106 million euros, when TVR had reported of the negative net position during 2014-2016.

Outlook for the year 2018 remains positive

The number of persons unemployed is expected to decrease further during the year 2018, although at a slower pace. The total amount of Unemployment Insurance Contributions for the year 2018 decreased by 0,2 percentage points. According to the budget it is stated that the change of the net position to be clearly positive in 2018. Unemployment Insurance Fund is in a better capacity to give out estimates regarding the development of unemployment in Finland and its operations in March 2018 (week 12) when it is due to present the Full-year report for 2017.

Additional  information:
Janne Metsämäki, Managing Director. tel. +358 40 522 3614
Tapio Oksanen, Deputy Managing Director, CFO tel. +358 40 539 4651

Helsinki, 30 January 2018

Unemployment Insurance Fund (TVR)
Tapio Oksanen
Deputy Managing Director

Distribution:
NASDAQ OMX Helsinki
Media
www.tvr.fi

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