Employment and unemployment in July 1998

- 55 000 more employed than a year ago
- Rate of unemployment 10.1 per cent, 265 000 unemployed
- Youth employment improved
- 17 000 new vacancies at labour exchange offices

According to the Labour Force Survey of Statistics Finland, there were 55 000 more employed this July than a year ago. Permanent, full-time jobs increased by about 50 000 in the year to July. During July, more than 17 000 new vacancies were reported to the labour exchange offices, which is somewhat fewer than in the corresponding period last year.

Jobs increased most in transport, trade and construction. Male employment improved more than female employment. Young people, in particular, were employed more than a year earlier. Jobs increased markedly only in the Province of Southern Finland. Jobs in agriculture and forestry continued to diminish.

According to the Labour Force Survey, there were 265 000 unemployed in July, which is 15 000 fewer than a year ago. The rate of unemployment was 10.1 per cent, which is 0.7 percentage points lower than in July 1997. Discouraged job seekers and those in disguised unemployment numbered almost 10 000 fewer than a year ago. The average rate of unemployment for the January to July period of 1998 was 12.2 per cent. The rate of unemployment for the same period last year was 13.6 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 7/1997 - 7/1998, 1 000 persons
	July	July		CHANGE, %
	1998	1997		7/97 - 7/98
Statistics Finland Labour Force Survey:
Employed, total	2 355	2 300		2,4
- wage earners	2 027	1 965		3,1
Unemployed ¹	265	280		-5,4
Labour force, total	2 619	2 579		1,5
Unemployment rate, %	10,1	10,8		-0,7 ²
Economically inactive, total	1 259	1 283		-1,8
- discouraged job seekers	43	52		-16,5
- other disguised unemployment	86	85		0,4
Ministry of Labour Employment Exchange Statistics:
Unemployed job seekers	388	428		-9,2
- unemployed over a year	115	127		-9,6
Employed with subsidised measures	53	59		-10,3
In labour market training	29	33		-12,6
In trainee and job alternation places.	14	13		6,5
New vacancies in labour exchange offices	17	17		-2,6
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 July, there were 388 000 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 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 fell by 10 000 from last year's July, being 3.9 per cent of the labour force this July.

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 15.6 per cent, which is about 1.1 percentage points lower than a year ago. Of this total age group, 9.6 per cent were unemployed. There were 58 000 unemployed job seekers aged under 25 registered at the labour exchange offices. This is 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.

The difference between the unemployment figures of Statistics Finland and the Ministry of Labour was considerable in July, as was a year earlier. This was caused by the exceptional labour market situation in the summer and this year also in part, by the statistical revision in the Labour Force Survey in May 1998.

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. Comparable statistics from previous years are available from Statistics Finland.

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 15 000 persons.

Inquiries:

Statistics Finland: Mr Tapio Oksanen +358 9 1734 3228, Ms Salme Kiiski +358 9 1734 3230, e-mail: salme.kiiski@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