Editorial Employment is growing more slowly than the number of job vacancies

The rapidly worsening labor shortage and the simultaneous slow rise in the employment rate indicate that Finland is approaching the upper limit of its employability. The limit is far too low in relation to the needs of the welfare state.

Left Alliance Li Andersson, Chairman fat over the weekend that the government has succeeded in its economic and employment policies. “Despite the pandemic, the Finnish economy is doing better than it has been for a long time,” he said, recalling that Finland had received praise from the International Monetary Fund. Andersson added that when the change in the way the Labor Force Survey is measured is taken into account, “the employment rate is higher than it has ever been since the turn of the 1980s”.

It may be pointless to measure Finland’s records in this sport, as the comparison with the distant world and its conditions becomes more problematic.

Andersson should refer employment rate in August and compares with its previous peak, February 2020, just before the pandemic. The trend figure for August – seasonally adjusted – was 72.8 per cent in the measurement reported in September. In the old way, this would have been slightly above the reference point. However, the trends change in the ex-post revisions. The revised figure for August published in October was only 72.4 per cent, which does not exceed the Finnish record even with adjustment factors.

Statistics Finland said latest readings on tuesday. The employment rate trend was 72.7 per cent in October, with a weighting of first place with February 2020.

Tithes the comparison and comparison is not very essential, as this reading may change as well. A more significant problem with Andersson’s interpretation is that the employment rate has been kept valid by mitigating the pandemic, distributing money, and becoming indebted. Many would not count this as an employment policy but as a distribution policy and to quell the crisis.

Research statistics to find even the most boring posts and records. Statistics Finland said last week, there were 62,400 vacancies in the third quarter of this year, clearly more than a year ago.

The benchmark also coincides with the pandemic, so the absolute change from a year ago is a big one. Most importantly, however, the autumn reading is a Finnish record in the third quarter series. This measurement method of Statistics Finland has also changed along the way, so the result is not quite unambiguous but a kind of wind result.

Ministry of Employment and the Economy support interpretation on Tuesday in its own way. Almost 170,000 jobs were open in October, up 69,100 from a year ago. Employers’ reports of labor shortages suggest that job vacancies will continue to grow. In the first quarter of the year, Statistics Finland has traditionally had more jobs open than in other quarters. If the tradition continues, there will already be very worrying readings at the beginning of next year.

Employment statistics also show that there are many long-term unemployed. Ministry of Employment and the Economy by There were 108,000 unemployed jobseekers who had been unemployed for at least a year in October. The number increased by 26,000 from a year ago. The municipal experiment in employment seems to be going to a dead end.

Welfare state securing long-term solvency is a hallmark of good economic policy. Solvency largely depends on how high the employment rate is in Finland.

The rapidly worsening labor shortage and the simultaneous slow rise in the employment rate indicate that Finland is approaching the upper limit of its employability. The limit is far too low in relation to the needs of the welfare state.

Raising this limit is the task and measure of the government’s employment policy. If the government fails to do so, the government’s employment and economic policies will receive much lower ratings than Andersson suggests.

The editorials are HS’s statements on a topical issue. The writings are prepared by HS’s editorial staff and reflect the magazine principle.

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