The number of unemployed increased by 7,000 to 220,000.
YLE on Tuesday pointed out that news of a healthy increase in employment took off in the wings of several companies and released solid second-quarter figures. The Bank of Finland, for its part, has estimated that household savings have increased by about nine billion euros as a result of the restrictions on social life caused by the pandemic.
Elina Pylkkänen, the State Secretary at the Ministry of Employment and the Economy, told the broadcaster that the increase in employment is the result of rising demand for labor in conditions where labor supply is stable.
“Economic growth has started well, which means that the demand for labor has increased. Labor is also available: we have more than 300,000 unemployed jobseekers. That means employment is starting to grow rapidly. Many completed their studies and did not apply for a job during the interrupted year of the coronavirus, but now they are doing so, ”he said.
The recovery in economic activity, especially in the services sector, largely explains the increase in employment Aki Kangasharju, CEO of Etla ‘s Economic Research.
“You have to keep in mind now that those who are temporarily laid off are counted as employed, meaning we are not talking about a normal, healthy economy in this regard,” he added to YLE.
Both Kangasharju and Pylkkänen reminded that the coronavirus continues to cast a shadow over the economic and employment situation.
“The biggest threat is a virus that changes in a way that prevents us from opening up the economy,” Kangasharju said. “It’s a short-term problem. The slightly longer-term problem is that we’ve reached a certain level of employment, but if we can’t keep up, we can’t get out of here. And if employment doesn’t improve and public finances don’t recover, we have to make cuts in public finances.”
Kangasharju himself is not full of confidence that the necessary decisions will be made.
“My expectations are very low,” he replied. “The train has left the station, the government has spent its money, but it has not implemented any employment measures that could replenish the public coffers. Important decisions have been postponed, and this summer there have been alarming messages from government ranks that decisions are still not needed. “
He said this fall may be the last chance to make decisions, as it is likely that parties will begin to turn their attention to the next parliamentary elections and are increasingly reluctant to make unpopular decisions.
Aleksi Teivainen – HT
Source: The Nordic Page