The proportion of foreign-language speakers among recipients of benefits from the Finnish Social Insurance Institution (Kela) is particularly noticeable in unemployment benefits and family benefits. However, the relative share of immigrants in benefits such as medication reimbursement and pensions is smaller. The development of benefit recipients mirrors the growth of the foreign-language-speaking population in the country.
By the end of 2022, there were 496,000 foreign-language speakers living in Finland. This number is more than double compared to 2010 when there were 224,000 foreign-language speakers. The proportion of foreign-language speakers in the entire population was around nine percent in 2022.
The share of foreign-language speakers receiving Kela benefits varies by benefit type. In some benefits, such as unemployment benefits and family benefits, foreign-language speakers make up a larger proportion of recipients than in the general population. In other benefits, such as medication reimbursements and pensions, their share is relatively smaller.
Foreign-language speakers are defined as individuals whose mother tongue is a language other than Finnish, Swedish, or Sámi.
Emphasis on Unemployment Benefits for Foreign-Language Speakers
In 2022, a total of 315,000 individuals received unemployment benefits. This figure includes all recipients of Kela unemployment benefits throughout the year, meaning individuals who received unemployment benefits at some point during the year. Of these individuals, 81,000 or 26 percent were foreign-language speakers.
Between 2010 and 2022, the proportion of foreign-language speakers among unemployment benefit recipients has more than doubled. The growth has been proportionally slightly higher than the growth of the foreign-language-speaking population in the country.
"The proportion of foreign-language speakers among Kela unemployment benefit recipients reflects the weaker position of immigrants in the job market. Unemployment is more common among them, and many are just entering the job market," commented Signe Jauhiainen, Research Manager at Kela.
Both foreign-language speakers and other unemployment benefit recipients saw an increase in numbers during the first half of the 2010s. Since 2016, the growth in the number of foreign-language speakers receiving unemployment benefits has slowed. The number of unemployment benefit recipients whose mother tongue is Finnish, Swedish, or Sámi has been declining. In 2020, the COVID-19 crisis caused a significant spike in unemployment, which is also reflected in Kela's statistics.
Unemployment benefits often serve as a support for integration. They ensure livelihood during activities like learning Finnish or acquiring vocational skills," explained Jauhiainen.
Foreign-Language Speakers Receive Family Benefits
In 2022, a total of 533,000 individuals received child allowance. Of them, nearly 71,000 or just over 13 percent were foreign-language speakers. The number of recipients whose mother tongue is a domestic language has decreased by about 64,000 individuals since 2010, while the number of foreign-language speakers has doubled, or increased by about 35,000 individuals. The total number of child allowance recipients has decreased by about 29,000 individuals since 2010.
Similar to child allowance, the proportion of foreign-language speakers among recipients of parental allowances was slightly over 13 percent. The number of recipients whose mother tongue is Finnish, Swedish, or Sámi was 26,000 fewer than in 2010, while the number of foreign-language speakers increased by 8,000 or about 80 percent more than in 2010. Overall, the number of recipients has decreased by about 18,000 individuals since 2010.
"The foreign-language-speaking population is younger in terms of age distribution than the rest of the population. Foreign-language speakers receive family benefits just as commonly as their same-aged counterparts whose mother tongue is Finnish," noted Jauhiainen.
Underrepresentation in Medication Reimbursement and Pensions
In 2022, Kela paid medication reimbursements to over three million individuals. Of them, 163,000 or slightly over five percent were foreign-language speakers. In 2010, the share was three percent. The proportion of foreign-language speakers among medication reimbursement recipients has thus grown slower than their proportion in the Finnish population.
The number of foreign-language speakers receiving medication reimbursements has increased by about 40,000 individuals since 2010. The number of recipients whose mother tongue is a domestic language decreased by nearly 800,000 individuals when a €50 initial deductible for medication reimbursement was introduced in 2016. Since then, the number of foreign-language speakers receiving medication reimbursements has increased by about 21,000 individuals, while the number of others has decreased by about 24,000 individuals.
In December 2022, Kela paid national and guaranteed pensions to 561,000 individuals. Of them, 33,000 or six percent were foreign-language speakers. There were 527,000 or 94 percent recipients whose mother tongue is Finnish, Swedish, or Sámi. In 2010, the proportion of foreign-language speakers was slightly under four percent.
The number of foreign-language speakers receiving Kela pensions has increased by 8,700 individuals, or about a third, which is significantly less than the growth of the foreign-language-speaking population as a whole. On the other hand, the number of recipients whose mother tongue is Finnish, Swedish, or Sámi has decreased by 117,000 individuals, or 18 percent.
"The younger age structure of the foreign-language-speaking population is also evident in medication reimbursements and pensions," said Jauhiainen.
HT
