Employment and unemployment in June 1998

- 44 000 more jobs than a year ago
- Rate of unemployment 12.0 per cent, 323 000 unemployed
- Youth unemployment went down most
- 23 000 new vacancies at labour exchange offices

According to the Labour Force Survey of Statistics Finland, there were 44 000 more employed this June than a year ago. Permanent, full-time jobs increased by over 40 000 in the year to June. During the month, over 23 000 new vacancies were reported to the labour exchange offices, which is slightly more than in the corresponding period last year.

Jobs increased most in financial intermediation, insurance and business activities, construction, and public and other services. In industry, jobs increased most in the forest and metal industries. Jobs in agriculture and forestry continued to diminish clearly.

According to the Labour Force Survey, there were 323 000 unemployed in June, which is 36 000 fewer than a year ago. The rate of unemployment was 12.0 per cent, which is 1.4 percentage points lower than in June 1997. The rate of youth unemployment now stood at 22.6 per cent, having gone down by nearly 5 percentage points. The number of discouraged job seekers and others in disguised unemployment contracted by 13 000. The rate of unemployment for the first half of 1998 was 12.6 per cent. The figures on unemployment are based on the unemployment statistics used in the EU's official statistics.

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Changes in the labour force 6/1997 - 6/1998, 1 000 persons
	June	June		CHANGE, %
	1998	1997		6/97 - 6/98
Statistics Finland Labour Force Survey:
Employed, total	2 362	2 318		1,9
- wage earners	2 037	1 984		2,7
Unemployed ¹	323	359		-9,9
Labour force, total	2 685	2 676		0,3
Unemployment rate, %	12,0	13,4		-1,4 ²
Economically inactive, total	1 193	1 186		0,6
- discouraged job seekers	50	48		5,3
- other disguised unemployment	73	89		-17,5
Ministry of Labour Employment Exchange Statistics:
Unemployed job seekers	382	421		-9,2
- unemployed over a year	114	125		-8,7
Employed with subsidised measures	57	65		-11,7
In labour market training	35	40		-13,2
In trainee and job alternation places.	15	15		-4,4
New vacancies in labour exchange offices	23	22		2,1
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 June, there were 382 000 persons registered, in accordance with the Unemployment Security Act and the Labour Exchange Office Regulations, as unemployed job applicants at the labour exchange offices. This is about 39 000 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 June last year and was 4.2 per cent of the labour force this June.

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 22.6 per cent, i.e. nearly 5 percentage points lower than a year ago. Of this total age group, 15.5 per cent were unemployed. There were 58 000 unemployed job seekers aged under 25 registered at the labour exchange offices. This is just under 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) 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 Ministry of Labour statistics, persons entering the labour market at the completion of their studies in spring are included in the unemployment figures for June.

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

As of the statistics for May 1998, Statistics Finland has applied the same practices in its unemployment statistics as are used by Eurostat, the Statistical Office of the European Communities. 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 0.6 percentage points. The confidence interval for the number of unemployed is approximately plus minus 17 000 persons.

Inquiries:
Statistics Finland: Mr Tapio Oksanen +358 9 1734 3228, Mr Hannu Siitonen +358 9 1734 3225, e-mail: hannu.siitonen@stat.fi; Ms Annukka Ruuhela +358 9 1734 3524; 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