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Bankruptcies forcing rise in taxpayer-funded salary support

Finland's economy might be heading for trouble.

Boxes in a warehouse
Assets from bankrupt businesses are seized and held at storage facilities like this one in Espoo. Image: Markku Rantala / Yle
  • Yle News

Payment of taxpayer-funded salary support, which is available to businesses in financial difficulty, has increased by some 15.6 percent in the year up to 31 July compared to the same period last year.

Expedited applications, which are for businesses heading into bankruptcy, are up by 19 percent.

So-called 'pay security' (palkkaturva in Finnish) can be paid by state regional administrative offices to employees whose employers are unable to find the funds.

In all, just over 19.5 million euros was paid out in pay security in the January-July period this year. The money comes from the Employment Fund, which uses some of the unemployment insurance contributions to fund different kinds of support for people in working life.

This week's All Points North asks if jobseekers should get lower unemployment benefits if their Finnish is below a certain level. Listen here, on Yle Areena, or wherever you get your podcasts.

Should jobseekers get lower benefits if they don't know Finnish?

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