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


Choose type:


Fast Comment FinlandStrong labour market improvement is behind us – stabilisation ahead

  1. Unemployment rate (SA) remained at 6.6 percent in May
  2. Employment rate edged up to 72.6 percent
  3. We expect the unemployment rate to bottom out in 2019-20
Unemployment rate (SA) remained at 6.6 percent in May
According to Statistics Finland's ILO/EU-compatible Labour Force Survey, the unemployment rate (SA) was 6.6 percent in May 2019. The seasonally-adjusted unemployment rate decreased by 0.9 percentage points compared to May 2018, but it has remained stagnant since the beginning of the year.
Employment rate edged up to 72.6 percent
Employment increased by 32,000 people compared to a year ago and the number of unemployed decreased by 12,000 people y-o-y in May. The seasonally-adjusted employment rate was 72.6 percent, which is 1.0 percentage point higher compared to last year. The seasonally-adjusted unemployment rate among young people (aged 15-24) remained at 16.2 percent, which is 0.8 percentage points lower than last year.
We expect the unemployment rate to bottom out in 2019-20
After a rapid decrease in 2017-18, the seasonally-adjusted unemployment rate has remained stagnant for the last five months. Even though employment is still improving, we can see some stabilisation in the Finnish labour market. However, there will be sincere attempts to keep the favourable labour market development going on, as the new Finnish government is targeting an employment rate of 75 percent by the end of 2023. To reach the target would require employment to grow by almost 70,000 persons. However, compared to the previous two years, when we have witnessed strong employment growth in Finland, there will not be the same support from the global economy in the next few years. We expect Finnish economic growth to soften further in 2019-21 (last week, 2018 GDP growth was revised down to 1.7 percent) and the unemployment rate to bottom out in 2019-20.

 



Disclaimer

Janne Ronkanen

Senior Economist

Finland

jaro06@handelsbanken.se

Latest analyses

2019-08-20

Fast Comment Finland

2019-08-09

Fast Comment Finland

2019-06-27

Fast Comment Finland