Unemployment Continued to Rise in August

At the end of August, there were a total of 311,100 unemployed jobseekers. This is 31,500 more than a year earlier and 28,000 fewer than in the previous month. However, the number of new unemployment spells was 7,900 lower than a year ago. The data comes from the Employment Bulletin by the Development and Administrative Services Centre (KEHA Centre). 

– The number of unemployed jobseekers includes clients of municipal employment services as well as those who are fully laid off, explains Riitta Kinnunen, researcher at the KEHA Centre. In August, there were a total of 14,300 fully laid-off individuals, which is 2,800 fewer than a year ago and 4,500 fewer than in July. Altogether, including those working reduced hours, there were 23,400 laid-off individuals across the country at the end of August, which is 2,600 fewer than in August 2024. 

Long-term Unemployment Continued to Rise, Increase Seen Across All Age Groups 

– In August, there were 129,200 long-term unemployed, meaning individuals who have been continuously unemployed and seeking work for at least one year. This is an increase of 32,300 compared with the same time last year. Of these, 62,700 had been unemployed for over two consecutive years, 10,900 more than in August 2024, explains Kinnunen. 

Unemployment increased in all age groups compared with a year ago. There were 36,800 unemployed jobseekers under the age of 25, which is 5,200 more than in August last year. Of the unemployment periods among young people, 45.8 percent ended within three months during January–August. This share fell by 9.2 percentage points compared with the previous year. 

There were 79,400 unemployed jobseekers aged 55 and over, which is 6,500 more than a year ago. For this age group, 42.2 percent of unemployment spells ended within three months during the same period, representing a decrease of 6.1 percentage points from the previous year. 

Slight Increase in the Number of New Job Vacancies  

– During August, 33,700 new job vacancies were reported, which is 3,100 more than during the same period last year. The largest numerical increase was seen in the occupational group of craft and related trades workers, where the number of new vacancies rose by 3,300, an increase of 72.0% compared with August 2024. The biggest decline occurred in the group of professionals, with 2,200 new vacancies reported in August, which is 60.8% fewer than a year earlier, summarizes Kinnunen. 

At the end of August, there were 78,600 individuals participating in services counted towards the activation rate, which is 29,500 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 benefit. 

Statistics Finland: The trend of the unemployment rate 10.0 per cent 

According to the Labour Force Survey issued by Statistics Finland, in July the number of people in employment was 23,000 less than on the previous year. The trend of the employment rate was 70.8%, which was 1.1 percentage points lower than in July the year before. According to the Survey, the unemployment total was 267,000, which is 53,000 more than a year ago. The trend of the unemployment rate was 10.0%, 1.2 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 Ministry of Economic Affairs and Employment, anyone who is not employed or acting as an entrepreneur is 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 are available for work within two weeks. The Labour Force Survey of Statistics Finland produces official unemployment figures that are internationally comparable.