Unemployment rates rise in Finland’s economic powerhouse regions

By admin On Nov 22, 2023

According to the latest data from YTK Unemployment Fund, unemployment levels among its members remained stable in October, mirroring the figures from September. However, a notable increase in unemployment rates compared to the same period last year has been observed, particularly in regions like North Ostrobothnia, Pirkanmaa, and Uusimaa, which are typically seen as economic strongholds in Finland.

Persistent Unemployment Despite Stable Monthly Rates

YTK, Finland’s largest unemployment fund, reported a 6.0% unemployment rate among its members in October, a slight decrease from 6.1% in September. However, this rate marks a 0.9 percentage point increase from the previous year. Factors contributing to this uptick include the downturn in the construction sector and a slowdown in industrial order books.

Auli Hänninen, CEO of YTK Unemployment Fund, expressed mixed feelings about the current unemployment situation. “It’s positive that unemployment didn’t rise last month, but we would have preferred to be at last year’s levels. Unfortunately, the current economic climate doesn’t support that,” she said.

In October, YTK disbursed a total of €54.6 million in unemployment benefits, a significant increase from the €42.9 million paid out in October 2022. The majority (93.8%) of these payments were based on continuation or adjusted benefit applications, with the remaining 6.2% for initial claims, indicative of new unemployment cases.

Regional Disparities in Unemployment Rates

The surge in unemployment is particularly pronounced in three populous regions – Uusimaa, Pirkanmaa, and North Ostrobothnia – which are crucial contributors to Finland’s Gross Domestic Product (GDP).

In Uusimaa, the unemployment rate has risen by one percentage point compared to October 2022, by 1.2 percentage points in Pirkanmaa, and by a substantial 1.6 percentage points in North Ostrobothnia. These figures represent significant changes, amounting to approximately a 20% increase in the unemployment rates of these regions.

In contrast, Varsinais-Suomi, a region used for comparison, witnessed a relatively smaller increase of only 0.4 percentage points during the same period.

Hänninen highlights the unusual trend of rising unemployment in traditionally successful economic regions. “Unemployment has particularly increased in regions that have been strong economically. Exceptions to this trend are Pohjanmaa and Åland, with Pohjanmaa experiencing only a 0.3 percentage point increase in its unemployment rate over the year, and Åland actually seeing a decrease of 0.4 percentage points,” she explained.

This data from YTK Unemployment Fund underscores the evolving landscape of Finland’s labor market, particularly in its usually robust economic regions, signaling a need for attention and potential policy adjustments to address these rising unemployment challenges.

Source: www.helsinkitimes.fi