Employment|Instead of employment, unemployment is growing. Finland has gone in a different direction than the rest of Europe, but a turnaround is still possible.
The summary is made by artificial intelligence and checked by a human.
Orpo’s government aims for 100,000 new employees, but employment has decreased by 30,000 people.
The unemployment rate has risen to 8.3 percent. It is the highest since spring 2020.
The Ministry of Finance predicts that employment growth will start next year.
The government tightens social benefits to improve employment.
Petteri Orpon (kok) government aims for 100,000 new jobs in Finland during the government period. So far, the direction has been different.
There are now 30,000 fewer people than when the government started in June last year.
Employment has been weighed down by the weak economy. Unemployment has increased during the year.
The unemployment rate, i.e. the share of the unemployed among the working-age population, is 8.3 percent. The last time an equally high proportion was in the first months of the corona pandemic was in the spring of 2020.
“Employment in EU countries has risen in recent years and unemployment has remained unchanged. In Finland, the situation is different: unemployment has risen second fastest among EU countries during the past year”, said Statistics Finland in August.
Treasury predicted last year that employment would turn to growth this year. Now the Ministry of Finance predicts that employment will turn to growth next year.
“The number of workers will decrease slightly this year, but will turn to growth again as the economy recovers and the government’s employment measures and immigration increase the labor supply,” the ministry’s summer forecast said.
The government’s employment measures refer above all to the tightening of unemployment insurance and other social benefits, which have come into force gradually. The Ministry of Finance estimates that the weakening of social security makes it difficult for the unemployed to apply for work faster than before.
Even so, the ministry’s forecasts have become less favorable from the point of view of the government’s employment goal. Just a year ago, in the fall, the ministry predicted that the employment rate would rise to 74.5 percent in 2026. In the summer, it predicted that the employment rate would only rise to 73.9 percent in 2026, i.e. the figures before the start of the government.
The employment rate describes the share of employed people in the population aged 15–64. Now the trend of the employment rate is 72.4 percent. The employment rate has shrunk by around 1.5 percentage points since the beginning of summer last year.
The government the employment goal has by no means been lost yet. Business cycles can swing employment quickly.
So Juha Sipilä (middle) than Sanna Marin too (sd) governments finally achieved their employment goal, although in both periods of government the goal already seemed to be out of reach.
The Sipilä government’s employment target was 72 percent and the Marin government’s 75 percent. The statistical reform permanently reduced the employment rates by about one percentage point, so the targets were 71 and 74 percent when viewed in current figures.
Orphan the government does not have an employment rate target for this term.
“In the longer term, the government’s goal is to raise the employment rate to 80 percent,” the government program says.
In the last term of government, employment was supported by, for example, the significant spending increases made by the Marin government as a debt. In the coming years, on the other hand, the Orpo government’s austerity measures and tax cuts may hold back the development of employment to some extent.
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