Employment and unemployment in August 1998

- 67 000 more employed than a year ago
- Rate of unemployment 10.2 per cent, 258 000 unemployed
- Labour supply increased, youth employment improved further
- 18 000 new vacancies at labour exchange offices

According to the Labour Force Survey of Statistics Finland, there were 67 000 more employed this August than a year ago. Permanent, full-time jobs increased by about 63 000 and the number of part-time wage earners grew by 10 000 in the year to August. During August, more than 18 000 new vacancies were reported to the labour exchange offices, which is nearly the same as in the corresponding period last year.

Jobs increased most in manufacturing and construction. Employment also improved in female-dominated sectors, such as hotel, restaurant and health care services. Young women, in particular, were employed more than a year earlier.

According to the Labour Force Survey, there were 258 000 unemployed in August, which is 18 000 fewer than a year ago. The rate of unemployment was 10.2 per cent, which is about one percentage point lower than in August 1997. The number of those in disguised unemployment also went down from the year before.

The average rate of unemployment for the January to August period of 1998 was 12 per cent. The rate of unemployment for the same period last year was 13.3 per cent.

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Changes in the labour force 8/1997 - 8/1998, 1 000 persons
	August	August		CHANGE, %
	1998	1997		8/97 - 8/98
Statistics Finland Labour Force Survey:
Employed, total	2 276	2 209		3.0
- wage earners	1 949	1 870		4.3
Unemployed ¹	258	276		-6.5
Labour force, total	2 534	2 485		2.0
Unemployment rate, %	10.2	11.1		-0.9 ²
Economically inactive, total	1 346	1 379		-2.4
- discouraged job seekers	40	47		-15.7
- other disguised unemployment	91	92		-0.9
Ministry of Labour Employment Exchange Statistics:
Unemployed job seekers	362	396		-8.7
- unemployed over a year	111	124		-9.9
Employed with subsidised measures	57	63		-9.0
In labour market training	34	37		-7.7
In trainee and job alternation places.	13	12		5.1
New vacancies in labour exchange offices	18	18		-1.1
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 August, there were 362 000 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 34 000 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 8 000 from last year's August, being 4.3 per cent of the labour force this August.

According to the Labour Force Survey, the unemployment rate, that is, the proportion of the unemployed in the total labour force, among persons aged 15 to 24 was 16.3 per cent, which is about 4 percentage points lower than a year ago. Of this total age group, 7.5 per cent were unemployed. There were 47 000 unemployed job seekers aged under 25 registered at the labour exchange offices. This is 6 000 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. The difference between the August unemployment figures of Statistics Finland and the Ministry of Labour was of the same magnitude as a year earlier. 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.

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 unemployment statistics following the EU's recommendations

As of the statistics for May 1998, Statistics Finland has applied the statistical practice in its unemployment statistics as recommended by the International Labour Organisation (ILO) and used in the EU's official statistics. 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 0.6 percentage points. The confidence interval for the number of unemployed is approximately plus minus 14 500 persons.

Inquiries:

Statistics Finland: Ms Salme Kiiski +358 9 1734 3230, e-mail: salme.kiiski@stat.fi; Ms Annukka Ruuhela
+358 9 1734 3524; Mr Hannu Siitonen +358 9 1734 3325;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