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23 January, 2001

Employment and unemployment in December 2000

- 33,000 more employed than a year ago
- Employment rate 66.4 per cent
- Rate of unemployment 8.3 per cent, 210,000 unemployed
- 15,000 new vacancies at labour exchange offices

According to the Labour Force Survey of Statistics Finland, there were 33,000 more employed in December 2000 than a year earlier. The number of wage-earners engaged in continuous full-time work was up by 37,000. The number of fixed-term and/or part-time jobs increased by 4,000 from the year before. During December, 15,000 new vacancies were reported to the labour exchange offices, which is 2,000 more than in December 1999.

In December 2000, the employment rate, that is, the proportion of the employed among persons aged 15 to 64, stood at 66.4 per cent, which is 0.8 percentage points higher than in last year's December. Adjusted for seasonal variation, the employment rate stood at 67.4 per cent in December. Of economic activities, employment grew most in transport and business services. Jobs increased most in the Provinces of Western and Southern Finland.

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Changes in the labour force 12/1999 - 12/2000, thousand

December 2000

December 1999

CHANGE, %
12/99 - 12/00

Statistics Finland Labour Force Survey:

Employed, total

2,319

2,286

1.4

- wage earners

2,011

1,969

2.1

Employment rate, %

66.4

65.6

0.8 2

Unemployed1

210

229

-8.4

Labour force, total

2,529

2,515

0.5

Unemployment rate, %

8.3

9.1

-0.8 2

Economically inactive, total

1,375

1,381

-0.4

- discouraged job seekers

38

42

-8.8

- other disguised unemployment

89

87

2.9

Ministry of Labour Employment Exchange Statistics:

Unemployed job seekers

320

357

-10.2

- unemployed over a year

87

94

-7.6

Employed with subsidised measures

40

43

-5.7

In labour market training

28

36

-23.7

In trainee and job alternation places

14

14

-2.5

New vacancies in labour exchange offices

15

13

14.6

Unrounded figures are used in the CHANGE column
1 Based on the recommendations of the International Labour Organisation (ILO)

2 percentage points

According to the Labour Force Survey, there were 210,000 unemployed in December, i.e. 19,000 fewer than the year before. The rate of unemployment was 8.3 per cent, while it was 9.1 per cent in December 1999. The unemployment rate among persons aged 25 to 74 was 7.5 per cent, whereas it stood at 8.3 per cent during the same period the year before. The unemployment rate among young people aged 15 to 24 was 14.5 per cent in December 2000, while it was 15.6 per cent in December 1999. Adjusted for seasonal variation, the unemployment rate was 9.3 per cent, 21.1 per cent for young people and 7.5 per cent for persons aged 25 to 74. The rate of unemployment was lowest in the Province of Southern Finland, i.e. 5.9 per cent, and highest in the Province of Lapland, at 17.2 per cent.

At the end of December 2000, there were 320,000 persons registered, in accordance with the Unemployment Security Act and the Labour Exchange Office Regulations, as job seekers at the labour exchange offices. This is about 36,000 fewer than in December 1999. Unemployment declined in the areas of all employment and economic development centres. The number of those covered by employment policy measures fell by 11,000 from the year before and was 3.4 per cent of the labour force. There were 38,000 unemployed job seekers aged under 25 registered at the labour exchange offices. Their number fell by 6,000 from December 1999.

According to the Labour Force Survey, the average number of employed persons was 2,335,000 in 2000, which is 39,000 more than in 1999. The employment rate, or the percentage of the employed among persons aged 15 to 64, grew by 0.9 percentage points, to 66.9 per cent.

In 2000 the average number of unemployed was 253,000, which was 8,000 fewer than the year before. The rate of unemployment fell from 10.2 to 9.8 per cent.

Differences between the Labour Force Survey and the Labour Exchange Statistics

The employment situation is monitored monthly both with the sample-based Labour Force Survey of Statistics Finland and with the register-based Labour Exchange Statistics of the Ministry of Labour. The Labour Exchange Statistics describe the situation on the last weekday of the month. Since January 2000, data for the Labour Force Survey have been collected for every week of the month, whereas previously they were only collected for the week containing the 15th day of the month. According to analyses made the impact of the change on the results is negligible on the annual level, but it may vary monthly. For instance, the impact is visible during spring and summer months as students enter the labour market. The impact is less noticeable during the autumn and winter months.

The Labour Force Survey follows the recommendations of the International Labour Organisation (ILO) and the practices required by Eurostat, the Statistical Office of the European Communities. According to them, a person is classified as unemployed if he or she is aged 15 or over, does not have a job, has actively sought employment in the past four weeks and would be available for work within two weeks. The Labour Exchange Statistics are based on legislation and administrative regulations.

The Labour Force Survey and the Labour Exchange Statistics apply two basically different statistical criteria to how actively a person seeks work and makes him/herself available on the labour market. Those unemployed persons who have neither contacted a labour exchange office for over four weeks, nor actively sought work in any other way either, are generally classified in the Labour Force Survey as belonging to disguised unemployment. Full-time students can be recorded as unemployed in the Labour Force Survey if they meet the ILO recommendations, whereas in the Labour Exchange Statistics they are not accepted as being unemployed during term time. Due to statistical differences, the number of unemployed job seekers does not agree with the number of unemployed calculated in accordance with the ILO recommendations. The difference between the December unemployment figures of Statistics Finland and the Ministry of Labour was smaller than a year earlier.

Since the Labour Force Survey is a sample survey, its data allow for random variation. In respect of the unemployment rate, for example, the 95 per cent confidence interval or the margin of error is about ± 0.5 percentage points.

Inquiries:
Statistics Finland: Mr Pekka Tossavainen +358 9 1734 3517, Mr Hannu Siitonen +358 9 1734 3225,
Mr Tapio Oksanen +358 9 1734 3228, Mr Heikki Tervo +358 9 1734 2921;
e-mail
tyovoima.tilastokeskus@stat.fi, Internet http://www.stat.fi/tk/el/tyoll.html
Ministry of Labour: Mr Oiva Lönnberg +358 9 1856 8048, e-mail
oiva.lonnberg@mol.fi; Internet http://www.mol.fi/katsaukset/
Latest seasonally adjusted unemployment figures published by the EU at:
http://europa.eu.int/comm/eurostat/