Better employment growth could be achieved in Finland with the current economic growth rate, despite the economic slowdown. Factors restricting employment growth in Finland include structural unemployment, labour market mismatch, and the limited supply of labour. These were the conclusions of short-term labour market forecast of the Ministry of Economic Affairs and Employment, which was published on 8 November 2019.
Employment growth deceleration is exceeding previous estimates. In the industrial and the construction sector, employment is no longer growing. The number of lay-offs is growing in the industrial sector. Service sectors are growing, accounting for the current employment growth.
Working-age population will continue to decline: the number of the oldest people of working age, i.e. those aged 65–74, will take a downward turn in a few years. The employment rate has risen faster than the number of employed people because the working-age population aged 15–64 has shrunk. Although participation rates are rising and demand for labour continues to grow slightly, labour supply will only increase marginally. Working age population will begin to diminish in 2021.
Labour market forecast: Structural problems restrict employment growth (Ministry of Economic Affairs and Employment 8.11.2019)