Due to the progress made in coronavirus vaccinations and the improved epidemiological situation, demand for labour is on the increase and the labour market is expected to grow sharply already this year.
According to the labour market forecast, the employment rate will rise to 71.2% this year and to 71.8% next year, thereby surpassing the level preceding the epidemic. Due to the declining population, the number of employed people will not exceed the pre-epidemic level until 2023.
Finland’s unemployment rate is forecast to remain at 7.7% this year as those outside of the labour force will begin to look for work. As more unemployed people find work, the rate is expected to fall to 7.3% in 2022 and to 6.7% in 2023.
The labour force participation rate is estimated to rise to 65.9% this year, which will be sufficient to restore the amount of the labour force to pre-epidemic level despite the decline in the population.
The number of registered unemployed jobseekers and young jobseekers in the Employment Service Statistics will begin to fall in 2021 as coronavirus-related restrictions are gradually lifted. In 2022 and 2023, their number will continue to decrease, but will remain at a higher level than before the epidemic.