Press release 26.7.2005

Employment and unemployment in June 2005

- Number of employed persons 40,000 higher than one year ago
- Employment rate 71.5 per cent
- Number of unemployed nearly unchanged
- Rate of unemployment 8.7 per cent, 239,000 unemployed
- 29,000 new vacancies at labour exchange offices
- In January to June 2005, average number of employed persons 39,000 higher than in previous year's corresponding period

According to the Labour Force Survey of Statistics Finland, the number of employed persons was 40,000 higher in June than one year previously. The number of wage earners grew, but that of self-employed persons decreased. There were 47,000 more part-time and/or fixed-term employment contracts than in June of the previous year. Employment increased in building construction, trade, social services and in the group of other services. Jobs decreased in agriculture, in the group of other manufacturing, and in transport and health services. Employment increased in all provinces except the Province of Lapland where it remained nearly unchanged.

In June, the employment rate, that is, the proportion of the employed among persons aged 15 to 64, stood at 71.5 per cent, which is one percentage point higher than twelve months before. The employment rate for women rose by 1.6 percentage points to 69.5 per cent and that for men by 0.3 percentage points to 73.4 per cent. Adjusted for seasonal variation, the employment rate in June was 68.0 per cent.

Changes in the labour force 6/2004 - 6/2005, thousand persons

  June 2005 June 2004 Change, %
6/04 - 6/05
Statistics Finland's Labour Force Survey:
Employed total 2 521 2 481 1.6
- wage and salary earners 2 210 2 162 2.2
- self-employed and assisting family members 311 319 -2.5
Employment rate, % 71.5 70.5 1.0 2
Unemployed 1 239 241 -0.7
Unemployment rate, % 8.7 8,9 -0.2 2
Labour force, total 2 760 2 721 1.4
Labour force participation rate 69.9 69.2 0.7 2
Economically inactive, total 1 187 1 213 -2.2
- students 170 188 -9.3
- persons performing domestic work 92 102 -9.9
Economically inactive persons in disguised unemployment 111 115 -3.7
 
Ministry of Labour's Labour Exchange Statistics:
Unemployed job seekers 285 296 -3.7
- unemployed over a year 73 74 -1.2
Employed with subsidised measures 36 37 -3.2
In labour market training 23 25 -6.2
In trainee and job alternation places 20 20 3.6
New vacancies at labour exchange offices 29 23 25.2
Unrounded figures are used in the CHANGE column
1 Based on the recommendations of the International Labour Organisation (ILO)
percentage points

According to the Labour Force Survey, there were 239,000 unemployed in June, which almost the same number as one year previously. The rate of unemployment was 8.7 per cent, having been 8.9 per cent one year before. Adjusted for seasonal variation, the unemployment rate in June was 8.2 per cent while in May it was 8.3 per cent. The unemployment rate for women was 9.0 per cent and that for men 8.3 per cent. The unemployment rate among young people aged 15 to 24 was 20.5 per cent. Adjusted for seasonal variation, the unemployment rate for young people was 20.4 per cent. The rate of unemployment was lowest in the Province of Southern Finland, i.e. 6.8 per cent, and highest in the Province of Lapland at 14.8 per cent.

According to the Labour Force Survey, in the January to June period of 2005 the average number of employed persons was 2,381,000, which is 39,000 higher than in the corresponding period of the year before. The average number of unemployed persons was 246,000, or 10,000 lower than in January to June 2004.

At the end of June 2005, there were altogether 285,000 persons registered, in accordance with the Unemployment Security Act and the Labour Exchange Office Regulations, as job seekers at the labour exchange offices. The number of job seekers was 11,000 lower than in June 2004. Compared with the year before, unemployment fell in the areas of all Employment and Economic Development Centres. The number of those covered by employment policy measures was 2,000 lower than in June 2004, being 2.9 per cent of the labour force. There were 37,000 unemployed job seekers aged under 25 registered at the labour exchange offices. Their number was 5,000 lower than in June 2004. During this June, 29,000 new vacancies were reported to the labour exchange offices, which is 6,000 more than in last year's June.

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. The Labour Exchange Statistics describe the situation on the last weekday of the month. The data for the Labour Force Survey are collected for every week 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. According to them, a person is classified as unemployed if he or she is aged 15 or over, does not have a job, has actively sought employment in the past four weeks and would be available for work within two weeks. 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. Due to the statistical differences, the number of unemployed job seekers may not agree with the number of unemployed calculated in accordance with the ILO recommendations.

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 or the margin of error is about ± 0.6 percentage points. The confidence interval for the number of unemployed is approximately ± 16,000 persons.

Inquiries:
Statistics Finland: Mr Pekka Tossavainen +358 9 1734 3517, Mr Veli Rajaniemi +358 9 1734 3434,
Email: tyovoima.tilastokeskus@stat.fi;
Ministry of Labour: Mr Oiva Lönnberg +358 10 60 48048; Internet: http://www.mol.fi/employmentbulletin
Latest seasonally adjusted unemployment figures published by the EU