A large number of people who worked part-time have ended up unemployed. According to a survey by the YTK Unemployment Fund, the cause is at least partly a law change last year that removed the earnings disregard from adjusted unemployment benefits.
YTK’s CEO, Auli Hänninen, said in a statement that full-time work is still considered the most financially sensible option, but transitions from part-time to full-time work have been limited.
— Instead, many quit part-time work and became completely unemployed specifically because of the law change, as the profitability of part-time work decreased, she continues.
A total of 2,720 YTK members who worked part-time last year responded to the survey. Half of them reported that their part-time working hours did not change after the law change. Eighteen percent said their working hours decreased. Sixteen percent of respondents became completely unemployed. Less than one in ten found full-time employment.
Previously, unemployed individuals could earn up to 300 euros per month without it reducing their unemployment benefits. Now, all earned income reduces the earnings-related allowance, which has weakened the financial viability of part-time work.
Among those who switched to full-time work, only one in ten said the reason was that the adjusted earnings-related allowance had decreased too much. Half of those who moved to full-time were simply offered full-time jobs. Well over half of those who quit part-time work said the reason was that the adjusted earnings-related allowance had decreased too much due to the law change.
According to Auli Hänninen, the reform has not effectively encouraged transitions from part-time to full-time work. Additionally, the problem is that the law change has caused many to stop working altogether.
The full information and the source text can be found at IS website.
Published 11.08.2025, FINREPO