Nearly One in Ten Now Unemployed

Unemployment continued its rise in June. At the end of the month, there were 275,800 unemployed. Compared to May, the increase in the number of unemployed was 30,900. The figure went up largely due to students entering the job market after completing studies, and the many fixed-term contracts that came to an end with the beginning of the summer.

According to the latest survey by the Ministry of Employment and the Economy, there were 67,500 more unemployed job-seekers at the end of last month than at the same time last year. The ministry also estimates that 76,000 people have been laid off from their jobs.

Statistics Finland sets the June unemployment level at 9.1 percent, a good 2 percentage points higher than in June 2008.

The sharpest increases in unemployment have been registered in southern Ostrobothnia, Pirkaanmaa and Varsinais-Suomi in the southwest. Fifty-six percent of unemployed job-seekers in June were men.

Minister Expresses Concern

Minister of Labour, Anni Sinnemäki, says the unemployment rate could exceed 10 percent next year. Admitting to YLE TV News on Tuesday that there was very little light at the end of the tunnel, she said the decline in exports and a slowdown in construction are the major factors contributing to unemployment.

Sinnemäki adds the government must now consider additional measures aimed at promoting recovery. However, such action could only be financed by borrowing. Making the correct investments in next year’s budget was of paramount importance, the Minister stressed.

The Minister said a separate review of youth employment was necessary. She described the rise in unemployment among under-24 year olds as “explosive.”

Statistics reveal 28 percent of those under 24 are without a job.