A sign outside a TE Office in Pasila, Helsinki, in March 2023. The Ministry of Economic Affairs and Employment has published data revealing that the number of registered job seekers increased by more than 10 per cent year-on-year to 292,400 in November. The number is edging closer to the peak witnessed in the midst of the coronavirus pandemic. (Heikki Saukkomaa – Lehtikuva)
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THE WINTER SOLSTICE may be behind us, but the gloom is showing no signs of lifting in the labour market, reports YLE.
The Ministry of Economic Affairs and Employment on Monday reported that unemployment has crept up noticeably, with the total number of unemployed job seekers rising by 28,100 from the previous year to 292,400 in November.
Heikki Räisänen, a research director at the Ministry of Economic Affairs and Employment, stated to the public broadcasting company that the only positive takeaway from the data is that the number of temporary lay-offs has decreased significantly.
“Our labour markets are currently pretty weak,” he conceded. “We have a very high number of unemployed job seekers and also other labour supply, and that might increase also from outside the labour force when the situation improves.”
The number of job vacancies has decreased, though. In November, employers reported 22,800 new vacancies, representing a drop of 21,600 from the corresponding month in in 2023. Also the total number of vacancies decreased by almost 50 per cent from the previous year, from 87,000 to 44,400.
Statistics Finland reported recently that the trend of the unemployment rate rose by 1.4 percentage points year-on-year to 9.0 per cent in November. Räisänen told YLE that the number of permanent full-time employees has decreased particularly as employers prefer fixed-term commitments.
The ranks of the long-term unemployed have also grown markedly, from 89,200 in 2023 to 102,600 in 2024, edging closer to the peaks witnessed during the coronavirus pandemic. People who have been unemployed uninterrupted for at least a year therefore account for more than a third of all joblessness.
The situation has ramifications for the entire labour market, as long-term unemployment holds back the employment rate due to problems linked to the outdated skills and low work capacity of many potential job seekers, highlighted Räisänen.
Unemployment is also on the rise among young old people, with the number of under 25-year-old job seekers rising by 4,800 year-on-year to 32,100 in November. Young people also seem to be finding it more difficult to return to the workforce judging by an increase in the average employment period and drop in the number of job seekers who find new employment in three months.
Räisänen is nevertheless not particularly concerned about youth unemployment. The unemployment periods, he explained, tend to be relatively short as young people are willing to also pursue education or short-term employment opportunities.
The unemployment landscape is subject to significant regional differences – especially between eastern and western parts of Finland. The unemployment rate was around seven per cent in North Ostrobothnia, but almost twice as high, 13.7 per cent, in North Karelia.
The differences are attributable to distinct industrial make-ups, population structures and entrepreneurial activity, according to Räisänen.
He reminded that although forecasts suggest the economy should resume growth next year, unemployment may increase temporarily as more people become active in the labour market. While the situation is challenging, the markets also offer new opportunities.
“The preconditions and rudiments for employment growth do exist as long as demand for jobs recovers,” he argued to YLE.
Aleksi Teivainen – HT
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Source: www.helsinkitimes.fi
