16 June, 1998
Employment and unemployment in May 1998
- 60 000 more jobs than a year ago
- School leavers enter the labour market
- Rate of unemployment 14.6 per cent, 385 000 unemployed
- 29 000 new vacancies at labour exchange offices
According to the Labour Force Survey of Statistics Finland, there were 60 000 more employed this May than a year ago. Permanent, full-time jobs increased by about 43 000 in the year to May. During May, more than 29 000 new vacancies were reported to the labour exchange offices, which is somewhat fewer than in the corresponding period last year.
Jobs increased in manufacturing, construction, transport, and public and other services. Jobs in agriculture and forestry continued to diminish clearly.
According to the Labour Force Survey, there were 385 000 unemployed in May, which is 11 000 fewer than a year ago. The rate of unemployment was 14.6 per cent. As every spring, the high number of the unemployed in May was due to young people entering the labour market as school terms ended. However, the rate of unemployment fell by 0.8 percentage points from last year's May. Discouraged job seekers and others in disguised unemployment numbered 14 000 fewer than a year ago. The figures for both May 1998 and May 1997 are based on the unemployment statistics used in the EU's official statistics.
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| Changes in the labour force 5/1997 - 5/1998, 1 000 persons | ||||
| May | May | CHANGE, % | ||
| 1998 | 1997 | 5/97 - 5/98 | ||
| Statistics Finland Labour Force Survey: | ||||
| Employed, total | 2 242 | 2 182 | 2.7 | |
| - wage earners | 1 921 | 1 856 | 3.5 | |
| Unemployed 1 | 385 | 396 | -3.0 | |
| Labour force, total | 2 627 | 2 579 | 1.9 | |
| Unemployment rate, % | 14.6 | 15.4 | -0.8 2 | |
| Economically inactive, total | 1 248 | 1 281 | -2.6 | |
| - discouraged job seekers | 41 | 47 | -13.6 | |
| - other disguised unemployment | 86 | 94 | -8.8 | |
| Ministry of Labour Employment Exchange Statistics: | ||||
| Unemployed job seekers | 358 | 395 | -9.3 | |
| - unemployed over a year | 113 | 123 | -8.7 | |
| Employed with subsidised measures | 59 | 66 | -10.5 | |
| In labour market training | 44 | 51 | -13.0 | |
| In trainee and job alternation places. | 15 | 14 | 7.5 | |
| New vacancies in labour exchange offices | 29 | 30 | -3.0 | |
| Unrounded figures are used in the
CHANGE column
1 Based on the recommendations of the International Labour Organisation (ILO). |
2 percentage points | |||
At the end of May, there were 358 000 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 37 000 fewer than a year ago. Unemployment decreased in the areas of all employment and economic development centres. The number of those covered by employment policy measures decreased from last year's May, being 4.7 per cent of the labour force this May.
Youth unemployment increased as school terms ended. 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 42.6 per cent, which is about 2.5 percentage points higher than a year ago. Of this total age group, about 25.3 per cent were unemployed. There were 42 000 unemployed job seekers aged under 25 registered at the labour exchange offices. This is less than 8 000 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) and the practices required by Eurostat, the Statistical Office of the European Communities. 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 four weeks, 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. School leavers entering the labour market can be seen as a rise in youth unemployment figures in the Labour Force Survey in May when school terms end. The unemployment figures generally fall in the course of the summer as school leavers either start to work or pursue further studies.
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 job seekers 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.
The Labour Force Survey has adopted wholly the EU's unemployment statistics
Starting from the statistics for May 1998, Statistics Finland will apply the same practices in its unemployment statistics as are used by Eurostat, the Statistical Office of the European Communities. Monthly time series in accordance with the new practice are available in the Internet at http://www.stat.fi/tk/el/tysarjat.xls (Excel format). A press release on the revision is available in the Internet at http://www.stat.fi/tk/tp_tied/leh/v98/l087ele.html. The revision in the statistical practice lowered the rate of unemployment by about 1.5 percentage points in comparison with the old practice.
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.
Inquiries:
Statistics Finland: Mr Tapio Oksanen +358 9 1734
3228, Ms Päivi Keinänen +358 9 1734
3416, Mr Timo Koskimäki +358 9 1734 3517,
e-mail: timo.koskimaki@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@pt2.tempo.mol.fi;
Internet: http://www.mol.fi/tilasto/tk