Finland’s employment trend rose to 72.7 per cent in July, the highest level since February 2020, just before the coronavirus pandemic began to affect the Finnish economy.
The effects led to the employment rate falling to 69.7 per cent in June last year, the lowest level in the whole pandemic.
However, Statistics Finland’s latest labor force survey revealed that there were about 86,000 more people in July – 45,000 men and 41,000 women – compared to the corresponding month last year, which raised the employment rate in Finland to 2.6 million.
Patrizio Lainà, Chief Economist of the Finnish Trade Union Confederation STTK, told Yle News that the latest employment figures are "surprising" but welcome, and it could lead to an increase in workers ’wages.
"An economic rise should generally mean that wages are rising, but it has not yet been seen. In particular, wages should rise in sectors where there is a labor shortage," Lainà said. "If the 2% inflation target is maintained in the future, we need wages to develop faster than in previous years."
Statistics Finland’s data also revealed that the number of unemployed decreased by about 5,000 in July compared to July 2020.
There were 99,000 unemployed men and slightly more women (103,000) in July. The unemployment rate decreased the most in Ostrobothnia (27 per cent), Pirkanmaa (26 per cent) and South Ostrobothnia (25 per cent).
The ministry’s figures also show that the situation is improving
The figures published by the Ministry of Economic Affairs and Labor on Tuesday also show that the employment situation in Finland has improved considerably in July 2020.
According to the Ministry, 322,600 unemployed jobseekers across the country were registered with TE offices in July, which was 64,900 less than a year earlier.
However, this figure was 53,700 more than in July 2019, indicating that the effects of the pandemic are still being felt in certain areas.
The ministry also noted that the number of long-term unemployed — people who have been continuously unemployed for at least a year — was 113,900 in July, up 36,200 from the previous year.
Despite these figures, a total of 72,200 new jobs or 25,800 increases were announced in July 2020, and there were 136,000 vacancies in July, up 49,300 from a year ago.
The differences in the figures provided by Statistics Finland are explained by the fact that Statistics Finland’s Labor Force Survey has a stricter definition of unemployment: a person is unemployed if he or she has actively applied for a job in the last four weeks and is available for work in the next two weeks.
The figures provided by Statistics Finland are internationally comparable, so they are Finland’s official unemployment statistics.
Source: The Nordic Page