Ministry forecast: Employment is approaching the government’s target for 2023

At the beginning of its term in December 2019, the Marin government set a goal of raising the employment rate to 75% by 2023 at the latest. According to the latest labor market forecast from the Ministry of Economic Affairs and Labor, the government is likely to be close to this target by the deadline.

Since the current government took office and announced its program, the ministry’s employment rate calculation method has changed, so that in 2019 it is now considered to be about one percentage point lower.

"According to the labor market forecast, the government’s employment target of 75% in 2023 will be very close, according to the old measurement," undersecretary Elina Pylkkänen explained in a press release from the Ministry of Employment and the Economy.

Employment began to recover from the economic impact of the coronavirus pandemic in the summer months and is now reaching pre-pandemic levels. Employment growth has been supported by economic recovery measures, deregulation and increased vaccine coverage. Economic growth has accelerated and employment has improved.

The employment rate is forecast to rise to 72.2% this year, ahead of the coronary virus.

More part-time work

Unlike before, employment growth has also meant an increase in part-time work. Although employment as a whole has increased, the number of permanent jobs has continued to decline. The total number of working hours has remained at the level of 2019, although the number of employed has increased.

The supply of part-time work is believed to be linked to the uncertainty brought about by the pandemic. Due to the uncertainty in the demand for goods and services, more part-time and fixed-term workers have been hired and fewer permanent jobs have been created. However, full-time work is forecast to increase unless new waves of pandemics disrupt the economy.

According to the Ministry’s figures, there will be 55,000 new employees this year and 40,000 next year, but only 10,000 in the third forecast for 2023. Employment growth is expected to be almost entirely within the service sectors. The new growth potential is particularly visible in the restaurant and cultural sectors, which are now recovering from the effects of the restrictions imposed to combat the pandemic.

More unemployed

So far, unemployment has not fallen to pre-pandemic levels, although the employment situation has improved. There are still 40,000 more unemployed jobseekers than before the start of the corona crisis.

The number of long-term unemployed has risen to a record level, with more than 40 per cent of all unemployed being long-term unemployed. However, the figure is steadily declining.

"The most gratifying development is that youth unemployment seems to be falling rapidly. This allows for a long career that will help narrow our sustainability gap. And above all, this is the cornerstone of young people’s optimism about the future," Pylkkänen pointed out.

The Ministry’s labor market forecast is based on a scenario in which restrictions on the fight against the coronavirus pandemic have ended and the economic recovery is continuing.

Source: The Nordic Page


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