Research
Tip: To personalise the research list, click the gear symbol above.


Choose type:


Fast Comment FinlandUnemployment rate 8.6 percent in 2017

  1. Unemployment rate (SA) 8.4 percent in December
  2. Many people entering the labour market
  3. Government’s target for employment rate achievable if the strong trend continues
Unemployment rate (SA) 8.4 percent in December
According to Statistics Finland's ILO/EU-compatible Labour Force Survey, the seasonally-adjusted unemployment rate was 8.4 percent in December 2017. The unemployment rate decreased by 0.3 percentage points compared to December 2016. In 2017, the seasonally-adjusted unemployment rate was on average 8.6 percent, having been 8.8 percent in 2016.
Many people entering the labour market
The employment increased by 48,000 people from a year ago, but also the number of unemployed increased by 20,000 y-o-y in December. There have been a lot of people entering the labour market as the labour force increased by 69,000 y-o-y. The seasonally-adjusted employment rate has increased by 1.8 percentage points in a year and stood at 70.7 percent in December 2017. The seasonally-adjusted unemployment rate among young people (aged 15-24) decreased by 1.3 percentage points, compared to last year, to 18.8 percent.
Government’s target for employment rate achievable if the strong trend continues
The latest labour market report provided a mixed picture about the recovery of the Finnish labour market. The downward trend in the seasonally-adjusted unemployment rate was not as encouraging as the previous November report suggested. The unemployment rate (SA) in December, as well as 2017, was higher than expected. However, the employment rate (SA) continued its rapid rise, and the current trend, were it to continue, makes it possible to achieve the Finnish government’s target of 72 percent by 2019. The latest upswing in the Finnish economy and the reforms in the labour market have caused many people to enter the labour market, and thus, the labour force has expanded. Many people have been employed but at the same time the number of unemployed has risen, as people previously discouraged from job seeking have returned to the job market. As a result of all this, the strong employment gains have barely decreased the unemployment rate. The business barometers also indicate a growing matching problem in the Finnish labour market. The barometer from The Confederation of Finnish Industries reports that recruitment difficulties are the most common obstacle to increasing output, particularly in construction and service sectors.

 






Disclaimer

Janne Ronkanen

Senior Economist

Finland

jaro06@handelsbanken.se

Latest analyses

2018-02-12

Markkinakatsaus

2018-02-09

Fast Comment Finland

2018-01-29

Markkinakatsaus