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Home BUSINESSUnemployment rises in cyclic, not structural, order
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Wed, 14 Jan, 2015 02:59:55 AM
Economic assessment report released
FTimes-STT Report, Jan 14
 
The Chair of the Finnish Economic Policy Council Roope Uusitalo and former Finance Minister Jutta Urpilainen and Professor Sixten Korkman who both commented on the report on 13 January 2015. Photo Lehtikuva.
The most surprising information deduced from the first report released by the Finnish Economic Policy Council is that the rise in unemployment has mainly been cyclic in recent years, while structural unemployment has exactly not worsened.
 
The council released the report on economic assessment in Helsinki on Tuesday.
 
“The general perception of the politicians has been that structural unemployment has been on the rise, and it has led to the call that certain reforms are required in the labour market,” said former finance minister Jutta Urpilainen.
 
Another commentator, Sixten Korkman, a professor at Aalto University, seemed equally surprised.
 
“It is an extremely interesting, important and relevant observation that structural unemployment is not a serious problem, as it was purported to be. The same could also be said of youth unemployment,” said Korkman.
 
According to the council chair, Professor Roope Uusitalo, the labour market indicators speak for the findings. For instance, neither long-term unemployment nor the differences in regional unemployment have increased, instead they have declined.
 
 
Those who in the past would have been on unemployment pension are now reflected in the Ministry of Employment and Economy statistics as long-term unemployed.
 
“There is no reason why unemployment would not drop at the same time, when economic recovery is up and running, as long as long as unemployment is not more structural than earlier,” pointed out Uusitalo.
 
The Finnish Economic Policy Council was formed last year. Its objectives are to improve the preparation of economic policy and the quality of decision-making as well as bringing forth evidence-based perspectives for discussion.
 
 
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