Finland's jobless rate hits record 10 pct in August: statistics

HELSINKI, Sept. 23 (Xinhua) -- Finland's unemployment rate climbed to 10 percent in August, the highest level since Statistics Finland began compiling its Labour Force Survey in 2009, the agency reported Tuesday.

The number of jobless people aged 15 to 74 rose by 53,000 from a year earlier. The trend figure, adjusted for seasonal and random variation, also stood at 10 percent.

"Such a high unemployment rate cannot be found in the current trend series of the Labour Force Survey, which starts in 2009," said Joanna Viinikka, chief actuary at Statistics Finland, noting that joblessness has been on the rise since spring 2023.

The capital region of Uusimaa has been hit particularly hard. Long-term unemployment among people under 30 surged more than 63 percent year on year in August, according to the local Centre for Economic Development, Transport and the Environment.

"The prolonged unemployment indicates that the economic cycle has not clearly turned upward. Companies are cautious with recruitment, and there are few open positions available. It is especially difficult for recent graduates to find employment in this situation," the agency said.

Henna Busk, senior economist at Pellervo Economic Research PTT, said the rise in unemployment is sharper than anticipated.

"It is worrying that youth unemployment in particular has been increasing. Starting a career in a recession can have long-term negative effects on earnings and career development, and raise the risk of social exclusion," she warned. Busk added that private-sector employment, which showed signs of recovery earlier this year, has weakened again.

In response, the Finnish government has advanced labor market reforms and tax measures to stimulate hiring. From 2025, rules on local collective bargaining will be expanded to give companies and employees more flexibility.

The corporate income tax rate will be cut from 20 percent to 18 percent to encourage investment and job creation, while unemployment benefits and related subsidies are being reduced to strengthen work incentives. Enditem