Employment opportunities dwindle in Uusimaa amid rising unemployment

By admin On Jun 27, 2024

A barista preparing coffee in a cafe in Helsinki. LEHTIKUVA

Uusimaa is experiencing a significant rise in unemployment, coupled with a sharp decline in new job openings. According to the latest data from the Ministry of Economic Affairs and Employment, as of the end of May, there were 92,274 job seekers in Uusimaa, of which 86,438 were unemployed and 5,836 were laid off. This marks an 11.0% increase in unemployed individuals and a staggering 47.3% rise in those laid off compared to the same period last year.

Overall, the number of unemployed individuals in Uusimaa increased by 12.8% from the previous year, with 10,440 more people seeking jobs compared to May 2022. Nationally, the year-on-year change at the end of May was 11.5%. The unemployment rate in Uusimaa stood at 10.1%, slightly higher than the national average of 9.9%.

The surge in unemployment is affecting various age groups. Young job seekers under 30 saw an 18.3% increase, bringing the total to 17,650. Those over 50 experienced an 8.3% rise, totaling 31,447 unemployed individuals. Additionally, the number of long-term unemployed in the region climbed to 35,899, up 2.7% from the previous year.

Foreign nationals have also been significantly impacted, with 22,295 unemployed, a 17.7% increase compared to last year.

The number of new job openings reported to Uusimaa’s TE Office in May was 14,254, a 39% decrease from the previous year. This decline mirrors the national trend, which also saw a 39% drop in new vacancies.

Jukka Appelqvist, Chief Economist at the Central Chamber of Commerce, provided a sobering analysis. “While the unemployment situation isn’t good, it could have been much worse given the prolonged economic downturn,” he noted.

Statistics Finland reported 299,000 unemployed people in May, 33,000 more than the previous year. The unemployment rate remained at 8.2%, consistent with the previous month, indicating a temporary halt in the deterioration of employment conditions.

In May, there were 35,000 fewer employed individuals compared to the same time last year. The employment rate for the 20-64 age group fell to 76.9%, while the traditional rate for those aged 15-74 remained stable at 72.4%.

“May’s numbers are partly better than expected, but the situation isn’t as favorable as it appears at first glance. Public sector job growth significantly supported employment figures. For the state economy, more jobs are needed in the private sector,” Appelqvist explained.

The number of new job postings to TE Offices in May was 46,100, a decrease of 29,500 from the previous year. This drop follows a year where labor demand had already significantly waned. Two years ago, 111,650 new jobs were reported in May, nearly two and a half times the current figure.

“I am particularly concerned about the declining demand for labor in the private sector. The poor number of new job openings indicates a severe slowdown in labor demand. In the best-case scenario, it will take a long time before employment begins to recover to previous levels,” Appelqvist concluded.

This outlook suggests that while public sector job growth offers some relief, the overall employment landscape remains challenging, especially for the private sector where new opportunities are scarce.

Source: www.helsinkitimes.fi