Employment statistics for April have been published, and according to the Finland Chamber of Commerce, they bring hope that the situation in Finland’s labour market is gradually turning for the better. The Pellervo Economic Research Institute (PTT) is also optimistic.
According to Statistics Finland, there were 288,000 unemployed people in April, which is 25,000 more than in the same month last year. The unemployment rate remains high at 9.2%. However, unlike earlier in the year, the figures did not worsen, and the decline in employment appears to be leveling off.
“The trend in the employment rate has been relatively stable for several months now. The coming months will show whether the worst is behind us. Full recovery, of course, is a long and slow process,” says Henna Busk, Senior Economist at PTT.
Chief Economist Jukka Appelqvist from the Finland Chamber of Commerce shares a similar view:
“We haven’t seen a massive turnaround in employment yet, but the latest statistics suggest gradual improvement. A clear upward trend will take time, but it appears that the decline has stopped,” he assesses.
In April, the employment trend rate for those aged 15–64 was 71.6%, while the unemployment rate trend stood at 9.2%, unchanged from the previous month.
Other positive signs in the recent data include a rise in the participation rate, growth in the working-age population, and a halt in the decline of net immigration. One contributing factor is that the decrease in public sector employment is slowing down, which particularly helps improve women’s employment. Additionally, there are early signs of growth in private sector employment.
According to Appelqvist, employment is broadly moving sideways without a clear direction. A recovery could begin sooner, but Finland traditionally “shuts down” for the summer, making significant progress unlikely before autumn.
“However, expectations for the autumn are clearly positive,” Appelqvist says.
Long-Term Unemployment a Growing Concern
In Finland, the number of long-term unemployed continues to rise sharply, which is worrying. Over 117,000 people had been unemployed for more than a year according to employment services — nearly 25,000 more than the previous year. According to Busk, resolving the situation will be challenging.
“Unfortunately, older periods of unemployment tend to become chronic, resulting in a significant long-term unemployment problem in Finland. We need stronger growth before this issue starts to ease,” Appelqvist says.
Furthermore, the number of new job openings was considerably lower than a year ago, indicating continued weak demand for labour. In April, 41,800 new vacancies were reported — over 14,000 fewer than in April last year.
In the photo: Chief Economist of the Finland Chamber of Commerce, Jukka Appelqvist
Photo: Liisa Takala
