Employment and unemployment in March 1998

- Nearly 33 000 more jobs than a year ago
- Rate of unemployment 13.7 per cent, 339 000 unemployed
- 30 000 new vacancies at labour exchange offices
- EU harmonisation of the Labour Force Survey continues

According to the Labour Force Survey of Statistics Finland, there were nearly 33 000 more employed this March than a year ago. Wage and salary earners' permanent, full-time jobs increased by about 40 000 in the year to March. The number of other employment relationships grew by about 10 000. During March, 30 000 new vacancies were reported to the labour exchange offices, which is 7 000 more than in the corresponding period last year.

Jobs increased in construction and business services. Employment improved most in the Provinces of Southern and Western Finland.

According to the Labour Force Survey, there were 339 000 unemployed in March, which is 58 000 fewer than a year ago. The rate of unemployment was 13.7 per cent, having fallen by 2.2 percentage points from last year's March. However, discouraged workers and those in disguised unemployment numbered 17 000 more than a year ago.

At the end of March, there were 384 000 persons registered, in accordance with the Unemployment Security Act and the Labour Exchange Office Regulations, as job applicants at the labour exchange offices. This is about 40 000 fewer than a year ago. Unemployment decreased in the areas of all employment and economic development centres. Approximately 5.1 per cent of the labour force were covered by subsidised employment policy measures.

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Changes in the labour force 3/1997 - 3/1998, 1 000 persons
	March	March		CHANGE, %
	1998	1997		3/97 - 3/98
Statistics Finland Labour Force Survey:
Employed, total	2 140	2 107		1.6
- wage earners	1 840	1 791		2.7
Unemployed ¹	339	397		-14.7
Labour force, total	2 478	2 504		-1.0
Unemployment rate, %	13.7	15.9		-2.2 ²
Economically inactive, total	1 394	1 353		3.0
- discouraged workers	22	13		68.7
- other disguised unemployment	60	51		17.2

Ministry of Labour Employment Exchange Statistics:
Unemployed job seekers	384	424		-9.5
- unemployed over a year	117	127		-8.1
Employed with subsidised measures	57	62		-8.3
In labour market training	50	53		-5.7
In trainee and job alternation places.	15	14		9.3

New vacancies in labour exchange offices	30	23		28.6
Unrounded figures are used in the CHANGE column ¹Based on the recommendations of the International Labour Organisation (ILO).			² percentage points

Male employment improved faster in March than female employment. The number of employed men grew by almost 30 000 in the year to March, but that of employed women by about 4 000.

According to the Labour Force Survey, the unemployment rate, that is, the proportion of the unemployed of the total labour force, among persons aged 15 to 24 was 27.9 per cent, which is about 4.5 percentage points lower than a year ago. Of this total age group, 11.2 per cent were unemployed. There were 45 000 unemployed job seekers aged under 25 registered at the labour exchange offices. This is 9 000 fewer than a year ago.

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. Calculations in the Labour Exchange Statistics are based on the status quo on the last working day of the month, whereas the Labour Force Survey describes the week that includes the 15th day of the month.

The Labour Force Survey follows the recommendations of the International Labour Organisation (ILO). 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. For this reason, the number of unemployed job seekers does not agree with the number of unemployed calculated in accordance with the ILO recommendations. Unemployed persons who have neither contacted a labour exchange office for over three months, nor actively sought work in any other way either, are generally classified in the Labour Force Survey as belonging to disguised unemployment. However, in compliance with the ILO recommendations, the Survey also classifies as unemployed persons seeking jobs by means other than through labour exchange offices.

In the Labour Force Survey, persons who could accept a job but are not actively seeking one are classified as belonging to disguised unemployment. The Survey divides disguised unemployment into two categories: discouraged workers are those who do not seek work because they do not think they would find any. Other disguised unemployment consists of persons who do not seek work because of studies, child care or some other reason, although they would be prepared to accept work if it were offered. In accordance with the ILO recommendations, all persons in disguised unemployment are classified in the Survey as not belonging to the labour force.

In EU statistics, public labour exchange customers are required to have visited a labour exchange office in the past month. Therefore, figures published by the EU differ to some extent from those of the Labour Force Survey.

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 is plus/minus 0.5 percentage points. The confidence interval for the number of unemployed is approximately plus/minus 14 500 persons.

EU harmonisation of the Labour Force Survey continues

In EU statistics, public labour exchange customers are required to have visited a labour exchange office in the past month. In Finnish statistics the corresponding interval is three months. Therefore, figures published by the EU differ to some extent from those of the Labour Force Survey.

Starting from the Labour Force Survey for May 1998, the EU practice for defining a person´s activity in seeking work will also be adopted in these statistics. Compared to the present, this means that the number of the unemployed will decrease. Correspondingly, the numbers of discouraged workers and those in disguised unemployment will increase. Before the change becomes effective, retrospective time series from 1989 onwards will be published in accordance with the new practice. The revision will not have any effect on how the changes in the employment situation are described.

Inquiries: Statistics Finland: Mr Tapio Oksanen +358 9 1734 3228, Mr Hannu Siitonen +358 9 1734 3225, Mr Timo Koskimäki +358 9 1734 3517, e-mail: timo.koskimaki@stat.fi
Ministry of Labour: Mr Oiva Lönnberg +358 9 1856 8048, e-mail: oiva.lonnberg@pt2.tempo.mol.fi internet: http://www.mol.fi/tilasto/tk