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Tue, 08 Sep, 2015 12:05:59 AM FTimes – STT Report, Sep 8  Job seeker at the Employment Office in Helsinki. File Photo – Lehtikuva. The unemployment situation in the country will deteriorate further next year, according to a forecast of Yleinen työttömyyskassa –YTK (the General Unemployment Fund).
YTK is preparing for the unemployment rate to rise next year to an anticipated 11.5 per cent from the present 10.5 per cent.
“We have assumed a relatively pessimistic view of next year,” said the managing director of the fund, Auli Hänninen to STT.
However, a small sliver of light shone on the employment prospects on Monday as small- and medium-sized enterprises (SMEs) announced a brighter economic outlook and improved employment prospects. But a rapid change for the general unemployment situation is not warranted.
Many economic forecasters have driven up estimates of unemployment. Last week, Nordea’s economists predicted that the unemployment situation is going to worsen yet in 2017.
The unemployment situation puts the government in a tight spot, and they plan to meet this week for budget discussions. When fewer hands are put to work, state tax revenues fall, and the costs caused by unemployment cause government spending to increase.
The general unemployment fund office in Loimaa.File Photo – Lehtikuva. Hänninen hopes the budget review will act to remove bureaucratic barriers to employment.
“We are seeking solutions for different part-time work and small enterprises, so that KELA benefits are not immediately cut off,” said Hänninen.
The YTK’s numbers are more focused on the private sector, and the recent unemployment rate, for example, has been higher, according to Tilastokeskus. Hänninen said the hardest hit section of YTK is in the construction and private services sector.
“Geographically, the worst situation is in Kainuu, northern Finland and eastern Finland. Although Uusimaa is also suffering from unemployment, it is significantly lower there than up north,” Hänninen said.
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