The Finnish government is set to reach its employment target of 72 per cent during the course of next year.
The Ministry of Employment and the Economy on Wednesday revealed that it expects the employment rate to rise to 71.7 per cent by the end of this year and to 72.7 per cent by the end of next year, with up to 100,000 people joining the ranks of the employed over the two-year period.
“The employment rate will improve to 71.7 per cent this year, representing a record-breaking increase of 2.1 percentage points from the previous year. The employment rate will also improve next year, reaching 72.7 per cent,” it said.
The Ministry of Employment and the Economy pointed out that employment has increased more robustly than one could have projected based on actual economic growth, with the ranks of the employed set to grow by 66,000, instead of the previously forecast 43,000, in 2018.
“The latest labour market forecast indicates that employment will increase by approximately 66,000 people in 2018 and […] by approximately 30,000 in 2019.”
It added that while most of the employment growth witnessed last year was attributable to an increase in labour supply, roughly half of the growth expected this year and next year will be a consequence of a decrease in unemployment.
“The expectation is nevertheless that employment growth will inevitably begin to slow down. The breakneck employment growth witnessed over the past year has been partly a consequence of the growth having been relatively sluggish until late 2017 – it is therefore in some way a correction,” it analysed.
The decline in unemployment is partly to blame for the slowdown in employment, as the lower unemployment falls, the more various structural factors begin to inhibit the growth, according to the Ministry of Employment and the Economy.
Aleksi Teivainen – HT
Source: Uusi Suomi