Finland is bracing for a harsh wave of layoffs, according to a widely read article in Helsingin Sanomat.
Unemployment in Finland has worsened more than anticipated with news of staff reductions and change negotiations making headlines daily, S-Pankki economist Janne Ronkanen told HS.
"The situation will likely worsen even further by the end of the year and early next year," he said.
Ronkanen expects a turnaround to happen only next spring, predicting that Finland's unemployment rate could peak at 8.5 percent or higher before that. The last time unemployment reached this level was in the early months of the Covid pandemic.
Last week, companies like forest industry firm UPM, steel outfit Ovako, chemicals manufacturer Kemira, pharma firm Bayer, furniture company Indoor, forestry company Metsä Group, tractor maker Valtra and health care services outfit Attendo announced major layoffs, putting 1,100 jobs at risk.
In September and October, many other firms also initiated change negotiations, including telecom outfit Telia with up to 500 job cuts, tech company Valmet with 200, healthcare database firm Apotti with 150, playground company Leos Hoplop with over 200 and train food services firm Avecra with nearly 100 planned cuts.
In addition, negotiations for personnel reductions have affected several government agencies, welfare regions and foundations due to the government's austerity measures.
The rise in unemployment is not unexpected, as labour market responses to economic changes are delayed, meaning that unemployment could worsen even after the economy appears to have stabilised. However, the labour market has deteriorated more than anticipated this autumn, experts said.
"The development in the labour market has been somewhat more negative than what was thought earlier this summer," Nordea economist Juho Kostiainen acknowledged.
According to HS, the employment index published by the pension insurance company Ilmarinen on Tuesday also indicates an additional deterioration in the jobs situation in September, with employee numbers declining across all sectors.
Despite economic indicators suggesting a more positive business outlook, experts believe that the slow recovery and growth have made companies cautious, resulting in a wave of redundancies.
Tampere's homeless
An increasing number of people in Tampere are becoming unhoused or facing the threat of homelessness, including those with jobs, according to a report by Aamulehti. The number of evictions in the city has also significantly risen this year.
By the end of September, there had been 221 evictions in Tampere, up from 181 during the same period last year. This year so far has seen more evictions than in all of 2022, when the total was 205.
The number of homeless clients in the city's housing advisory services has increased by 350 percent from April to September compared to earlier in the year. During this period, there were nearly 100 unhoused clients, according to Elina Pekkarinen, a development coordinator for Sustainable Housing and Construction for the City of Tampere.
She said the phenomenon of homelessness has become mainstream. "Homelessness is no longer necessarily linked to factors other than low income. As a result, there are now also unhoused people in Tampere, for instance, who are working."
The government reduced housing support last spring, increasing co-payments and lowering compensation rates, with some seeing reductions of up to 170 euros. Social assistance rules have also tightened, requiring recipients with high housing costs to find cheaper accommodation within three months unless there's a valid reason to stay.
Many benefit recipients have also been forced to move out of Tampere due to the lack of affordable housing in the city to avoid homelessness.
A major issue in Tampere is the lack of affordable larger housing, particularly forcing families with children, to relocate from established communities. Few homes meet the social assistance housing cost limits, and competition for them is high.
Warm weather shift
Warmer autumn weather will arrive in Finland starting Wednesday, tabloid Iltalehti reported.
High pressure will bring warmer air from the west, leading to occasional sunny breaks but not completely dry weather, according to weather service Foreca.
Later in the week, the weather will remain consistently warm for this time of year. According to Foreca, Thursday, Friday and the weekend will generally stay sunny and dry, although there may be some showers in central and northern Finland.
By the end of the week, parts of Finland will enjoy sunny autumn days with temperatures ranging from 8-14 degrees Celsius in southern and central regions, and 6-12 degrees in the north. Temperatures in northern Lapland will hover around 5 degrees.
Users with an Yle ID can leave comments on our news stories. You can create your Yle ID via this link. Our guidelines on commenting and moderation are explained here.