The Growth of Long-Term Unemployment Continued

At the end of May, there were a total of 307,400 unemployed jobseekers. This is 41,100 more than a year earlier and 5,800 fewer than the previous month. The data comes from the Employment Bulletin by the KEHA Centre.

– The number of unemployed jobseekers includes clients of municipal employment services as well as those who are fully laid off, explains researcher Miika Hakala from the Development and Administration Centre of the ELY Centres (KEHA Centre). There were a total of 18,200 fully laid-off individuals, which is 2,200 fewer than in May of the previous year. In May, the number of fully laid-off individuals decreased by 4,600. In total (including those working reduced hours), there were 29,100 laid-off individuals across the country at the end of May, which is 1, 000 fewer than a year earlier.

There Were 119,500 Long-Term Unemployed, but the Total Number of Unemployed Decreased

– In May, there were 119,500 long-term unemployed, meaning individuals who have been continuously unemployed and seeking work for at least one year. This is 25,900 more than a year earlier. Long-term unemployment continues to rise compared to the previous month, even though the overall number of unemployed has decreased, Hakala notes.

The number of young unemployed jobseekers under the age of 25 was 6 ,100 more than in May last year, totalling 35,200 individuals. Of the unemployment periods among young people, 44.6 percent ended between January and May before reaching three months, which is 10.1 percentage points fewer than the previous year. The number of unemployed jobseekers over the age of 50 was 106,900, which is 12,300 more than at the same time last year.

Decrease in the number of new vacancies

– During May, 25,700 new job vacancies were reported, which is 20,400 fewer than in May of the previous year. In terms of numbers, the largest decrease was seen in the occupational group of service and sales workers (-5,600), which is 42 percent less than the previous year, Hakala summarizes. In total, there were 58,800 open job vacancies in May, which is 34,900 fewer than a year ago.

At the end of May, there were 102,700 people participating in services counted towards the activation rate, which is 13,400 fewer than a year earlier. These services include, for example, wage subsidies, labour market training, rehabilitative work activities, and self-motivated studies supported by unemployment benefits.

Statistics Finland: The trend of the unemployment rate 8.8%

According to the Labour Force Survey issued by Statistics Finland, in April the number of people in employment was 19,000 less than on the previous year. The trend of the employment rate was 71.8%, which was 0.5 percentage points lower than in April the year before. According to the Survey, the unemployment total was 308,000, which is 9,000 more than a year ago. The trend of the unemployment rate was 8.8%, or 0.6 percentage points higher than the previous year.

Key differences between the Employment Service Statistics and the Labour Force Survey 

The information is based on the Employment Service Statistics of the KEHA Centre and the Labour Force Survey of Statistics Finland. The source of the Employment Service Statistics of the KEHA Centre is the customer register of municipal employment services, while the Labour Force Survey of Statistics Finland is a sample survey. 

In the Employment Service Statistics of the KEHA Centre, any persons who are not employed or acting as entrepreneurs are classified as unemployed. Persons fully laid off but not full-time students are also categorised as unemployed in the Employment Service Statistics. The Labour Force Survey of Statistics Finland has a stricter definition of unemployed: a person is unemployed if they have actively sought employment during the preceding four weeks and is available for work within two weeks. The Labour Force Survey of Statistics Finland produces official unemployment figures that are internationally comparable.