At the beginning of its term of office in December 2019, the Marin government set a target of raising the employment rate to 75 percent by no later than 2023. According to the latest labour market forecast by Ministry of Economic Affairs and Employment, the government is likely to come close to that goal by that deadline.
However, since the current government took office and announced its programme, the method used by the ministry to calculate the rate of employment has changed, so what was considered 75 percent in 2019 is now around one percentage point lower.
"According to the labour market forecast, in 2023 we will get very close to the government's 75 percent employment target according to the old measurement method," Undersecretary of State Elina Pylkkänen explained in a release by the Ministry of Employment and the Economy.
Employment began to recover from the economic effects of the coronavirus pandemic during the summer months and is now reaching pre-pandemic levels. Employment growth has been supported by economic recovery measures, reduced restrictions and increased vaccine coverage. Economic growth has picked up pace pace and employment has improved.
The employment rate is projected to rise to the pre-coronavirus level of 72.2 percent this year.
More part-time work
Unlike in the past, the growth in employment has also meant an increase in part-time work. Although employment as a whole has increased, the number of permanent jobs has continued to decline. The total number of hours worked has remained at the 2019 levels, although the number of people with jobs has increased.
The supply of part-time work is thought to be related to the uncertainty brought about by the pandemic. With demand for goods and services uncertain, more part-time and fixed-term workers have been hired and fewer permanent jobs have been created. However, the forecast believes that full-time work will increase unless new waves of the pandemic disrupt the economy.
There will be 55,000 new hirings this year, according to the ministry's figures, and 40,000 next year, but only 10,000 in the third projected year of 2023. Employment growth is expected to be almost entirely within the service sectors. New growth potential is especially evident in the hospitality and culture sectors that are now recovering from the impact of restrictions imposed to deal with the pandemic.
More unemployed
So far, unemployment has not fallen to pre-pandemic levels, even though the employment situation has improved. There are still 40,000 more unemployed jobseekers than before the start of the coronavirus crisis.
The number of long-term unemployed has risen to record levels, with more than 40 percent of all unemployed in the long-term category. However, that figure is steadily declining.
"The most gratifying development is that youth unemployment seems to be declining rapidly. This enables the long careers that will help alleviate our sustainability gap. And above all, this is the cornerstone of young people's optimism about the future," Pylkkänen noted.
The ministry's labour market forecast is based on a scenario in which restrictive measures imposed to deal with the coronavirus pandemic have ended and economic recovery continues.