Employment and unemployment in October 2002

- 6,000 fewer employed than a year ago
- Employment rate 67.1 per cent
- 4,000 more unemployed than one year ago
- Rate of unemployment 8.5 per cent, 218,000 unemployed
- 21,000 new vacancies at labour exchange offices

According to the Labour Force Survey of Statistics Finland, the number of employed persons was 6,000 lower than a year earlier. The number of wage-earners rose slightly, while that of self-employed persons fell from the year before. The number of wage-earners engaged in continuous full-time work went down by 11,000. In October, 13,000 more wage-earners than one year ago were in atypical, e.g. part-time or fixed-term, employment relationships. During October, 21,000 new vacancies were reported to the labour exchange offices, which is nearly 2,000 more than in October 2001.

In October, the employment rate, that is, the proportion of the employed among persons aged 15 to 64, stood at 67.1 per cent, which is 0.4 percentage points lower than the year before. Adjusted for seasonal variation, the employment rate was 67.7 per cent. Compared to last year's October, employment grew in public services and construction. Employment declined in manufacturing and retail trade. Jobs increased in the Provinces of Eastern Finland and decreased in the Province of Southern Finland.

Changes in the labour force 10/2001 - 10/2002, thousand

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	October 2002	October 2001	CHANGE, % 10/01 - 10/02
Statistics Finland's Labour Force Survey:
Employed, total	2 354	2 360	-0.3
- wage-earners	2 045	2 043	0.1
- self-employed and unpaid family workers	309	318	-2.9
Employment rate, %	67.1	67.5	-0.4 ²
Unemployed¹	218	214	1.9
Labour force, total	2 572	2 574	-0.1
Unemployment rate, %	8.5	8.3	0.2 ²
Economically inactive, total	1 348	1 337	0.8
- discouraged job seekers	31	32	-3.8
- other disguised unemployment	72	68	6.5
Ministry of Labour's Labour Exchange Statistics:
Unemployed job seekers	277	289	-4.2
- unemployed over a year	75	79	-4.6
Employed with subsidised measures	38	38	1.9
In labour market training	33	29	14.1
In trainee and job alternation places	19	16	14.4
New vacancies in labour exchange offices	21	19	13.6
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 218,000 unemployed in October, i.e. 4,000 more than the year before. The change is within the margin of error (± 14,000). The rate of unemployment was 8.5 per cent, while it was 8.3 per cent one year previously (the margin of error ± 0.5 percentage points). Adjusted for seasonal variation, the unemployment rate was 9.1 per cent.

The unemployment rate for men was 8.1 per cent and for women 8.9 per cent. One year earlier the unemployment rate for men was 8.2 per cent and for women 8.4 per cent. The unemployment rate among young people aged 15 to 24 was 16.7 per cent, while it stood at 16.1 per cent in October last year. Adjusted for seasonal variation, the unemployment rate for young people fell to 20.5 per cent. The rate of unemployment was lowest in the Province of Southern Finland, i.e. 6.0 per cent, and highest in the Province of Lapland, at 16.0 per cent. Of all industries, the unemployment rate was highest in construction, 11.4 per cent.

According to the Labour Force Survey, the average number of employed persons was 2,379,000 in the January to October period of this year, which is 8,000 higher than in the corresponding period last year. The number of unemployed persons was 243,000, i.e. nearly 1,000 more than in the January to October period of last year.

At the end of October, there were 277,000 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 12,000 fewer than in October 2001. Unemployment declined elsewhere in the country, but rose in the area of the employment and economic development centre of Uusimaa. The number of those covered by employment policy measures increased by 7,000 from the year before and was 3.6 per cent of the labour force. There were 33,000 unemployed job seekers aged under 25 registered at the labour exchange offices. Their number was 2,000 lower than in last year's October.

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. The data for the Labour Force Survey are collected for every week of the month.

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 October unemployment figures of Statistics Finland and the Ministry of Labour was somewhat greater than the year before.

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. The confidence interval for the number of unemployed is approximately ± 14,000 persons.

Inquiries:
Statistics Finland: Mr Pekka Tossavainen +358 9 1734 3517, Mr Kalle Sinivuori +358 9 1734 3524, Ms Salme Kiiski +358 9 1734 3230, Mr Veli Rajaniemi +358 9 1734 3434;
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/en/comm/eurostat/