Employment and unemployment in December 1998

- 44 000 more employed than a year ago
- Employment rate up by 0.9 per cent to 63.9 per cent
- Rate of unemployment 10.2 per cent, 253 000 unemployed
- 13 000 new vacancies at labour exchange offices

According to the Labour Force Survey of Statistics Finland, there were 44 000 more employed in December than a year ago. The number of wage-earners also went up by 44 000 in the year to December. The number of persons employed in continuous full-time jobs increased by 50 000 and that of persons in part-time jobs by two thousand. During December, 13 000 new vacancies were reported to the labour exchange offices, which is nearly 3 000 more than in December 1997.

Over the year, the employment rate, that is, the proportion of the employed among persons aged 15 to 64, went up by 0.9 percentage points to 63.9 per cent. Jobs increased most in public and other services and in business services. Employment improved in all provinces, but most in the provinces of Western Finland and Oulu.

According to the Labour Force Survey, there were 253 000 unemployed in December, which is 28 000 fewer than a year ago. The rate of unemployment was 10.2 per cent, which is 1.2 percentage points lower than in December 1997. The male unemployment rate was 9.8 per cent and the female one 10.7 per cent.

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Changes in the labour force 12/1997 - 12/1998, thousand
	December	December	CHANGE, %
	1998	1997	12/97 - 12/98
Statistics Finland Labour Force Survey:
Employed, total	2 221	2 177	2.0
- wage earners	1 902	1 858	2.4
Employment rate, %	63.9	63.0	0.9
Unemployed ¹	253	281	-10.1
Labour force, total	2 474	2 458	0.6
Unemployment rate, %	10.2	11.4	-1.2 ²
Economically inactive, total	1 410	1 412	-0.2
- discouraged job seekers	43	47	-8.1
- other disguised unemployment	113	112	0.6
Ministry of Labour Employment Exchange Statistics:
Unemployed job seekers	376	407	-7.7
- unemployed over a year	105	124	-15.2
Employed with subsidised measures	54	59	-7.9
In labour market training	37	48	-22.8
In trainee and job alternation places	14	14	1.9
New vacancies in labour exchange offices	13	10	29.1
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 December, there were 376 000 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 31 000 fewer than in December 1997. Unemployment decreased in the areas of all employment and economic development centres. The number of those covered by employment policy measures fell by 15 000 from the previous year's December, being 4.5 per cent of the labour force.

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 17.8 per cent, which is 2.8 percentage points lower than the year before. There were 49 000 unemployed job seekers aged under 25 registered at the labour exchange offices. This is 4 000 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 December 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 0.5 percentage points. The confidence interval for the number of unemployed is approximately plus minus 14 000 persons.

Inquiries:

Statistics Finland: Mr Tapio Oksanen +358 9 1734 3228; Ms Salme Kiiski +358 9 1734 3230;
Mr Hannu Siitonen +358 9 1734 3225, e-mail hannu.siitonen@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