Economist: The unemployment situation will worsen towards the end of the year

The employed the number fell clearly in September while the number of unemployed increased, Statistics Finland said on Tuesday.

According to Statistics Finland, there were 54,000 fewer employed people aged 15–74 in September than at the same time last year. There were 30,000 more unemployed people aged 15–74 in September compared to a year ago.⁠

Economist of Finnish Entrepreneurs Petri Malinen According to

“The still too high interest rate level for Finland is reflected in consumers’ desire to spend, and private consumption has taken off more slowly than expected. This can be seen in the declining employment situation in trade and services, and in addition to that, the extraordinary dive in construction seems to continue,” says Malinen in his email comment.

Also the chief economist of the Central Chamber of Commerce Jukka Appelqvist estimates that the effects of the economic downturn on employment can still be expected.

“Although we have fortunately already heard more positive news about the Finnish economy, the challenges are not over. Employment reacts to economic downturns with a delay, so it is not surprising that unemployment continues to rise for the time being. Better times had to wait until next year,” says Appelqvist in his email comment.

15–74-year-olds According to Statistics Finland, the trend figure for the unemployment rate was 8.4 percent in September. Meanwhile, the trend figure for the employment rate of 20–64-year-olds was 76.5 percent in September.

According to Appelqvist, the trend of the unemployment rate last time was at the same readings in January 2018.

According to Statistics Finland, there were slightly less than 2.6 million employed and 227,000 unemployed in September.

In September, there were 16,000 fewer employed men and 39,000 fewer employed women than at the same time last year.

Senior economist at PTT for Pellervo economic research Henna Bush estimates that weak employment development will continue in the coming months.

“Unemployment will rise toward the end of the year, because economic growth is still low and the construction situation will remain weak until the middle of next year,” Busk wrote in his email comment.

in Finland we have seen a lot of change negotiation news in recent weeks. Last week, S-Bank’s economist Janne Ronkanen reviews in Helsingin Sanomatthat the employment situation “will probably get even worse at the end of the year and at the beginning of next year.”

According to Ronkainen’s assessment, unemployment will probably reach its highest point at the end of the year and remain at peak readings in the early months of next year. According to Ronkanen, the unemployment rate can rise to 8.5 percent or more. Now the reading has remained at 8.3 percent since July.

Unemployment was last as high in the first months of the corona pandemic.