Uusimaa region faces surge in unemployment as job market struggles

By admin On Dec 22, 2023

Customer at the Helsinki Employment Service Center in the Pasila Employment Office. LEHTIKUVA

In a concerning turn for Finland’s labor market, the Uusimaa region has witnessed a significant rise in the number of unemployed job seekers. As of November’s end, Uusimaa reported a total of 88,687 unemployed job seekers, a 12.1% increase compared to the previous year. This number includes 82,154 individuals without employment and 6,533 furloughed workers, marking a sharp rise in both categories.

The entire country reflects this troubling trend, with a 7.8% rise in the unemployed without employment contracts and an 87.8% increase in furloughed individuals. The situation is particularly stark among younger populations. In Uusimaa, there are 7,390 unemployed job seekers under 25 years old, a 17.6% increase from the previous year, and 16,612 unemployed under 30 years old, up by 16.2%.

Long-term unemployment and foreign nationals seeking jobs have also been affected. Uusimaa has seen a 2.3% increase in long-term unemployed, totaling 34,537 individuals. Foreign nationals unemployed in the region have increased by 18.1%, now totaling 20,606.

New job openings in Uusimaa have seen a drastic reduction. In November, only 14,172 new vacancies were reported, a 46.8% decrease from the previous year. Nationally, the year-on-year change was a decrease of 39.2%.

Statistics Finland’s labor force survey paints a bleak picture for the national employment landscape. The country saw a decrease of 22,000 employed individuals compared to last year, with the employment trend for individuals aged 20-64 at 77.6% and 15-64 at 73.3%. These figures represent a significant drop from their peaks last year.

Jukka Appelqvist, Chief Economist at the Central Chamber of Commerce, notes, “The number of employed continued a slow but steady decline in November. While the changes are gradual and sometimes hardly noticeable in individual reports, a longer-term view reveals a creeping increase in unemployment and a notable decline in employment.”

The Ministry of Employment and the Economy reports that full-time furloughs in November rose to 26,000, a significant increase from both the previous month and year. The number of open job positions in TE-offices was down to 87,000, 48,600 fewer than the previous year.

Appelqvist warns that the employment situation is likely to worsen in the coming months. “Compared to a year ago, the number of open job positions has plummeted, and furloughs have nearly doubled. It’s clear that employment will continue to deteriorate. However, it’s important to avoid excessive pessimism, as we are still far from the unemployment levels seen in deeper recessions.”

This downturn in the labor market underscores the need for proactive measures to stimulate job creation and support those currently struggling to find employment in Finland.

Source: www.helsinkitimes.fi