Employment set to improve in spite of wave of dismissals

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In spite of recent news of massive job cuts, discussions on personnel reductions affect considerably fewer now than at the same time last year. Since June, discussions on job reductions or temporary layoffs have affected a few thousand jobs, whereas a year ago the number was in the tens of thousands.
      In the first half of last year alone there were talks on the future of 15,000 jobs. Now just a few thousand are on the line.
      Seppo Mustonen, the head economist at the Confederation of Finnish Industry and Employers (TT), says that the figures on the economic development in the summer, as well as cyclical expectations, suggest that better times are ahead. He also notes that improved economic prospects are usually reflected in employment figures with a delay of about six months.
     
There has already been an improvement in the employment situation during the past summer. According to Nordea Bank, new jobs are emerging mainly in the service sector. Also, the decline in jobs in industry has not been as steep as in previous months.
      Nordea expects the upturn in the world economy to continue at least until 2006. Finland’s positive prospects are overshadowed by the shortage of investments, which are at a nearly historically low level.
      Nordea economist Reijo Heiskanen says that powerful economic policy measures are needed to revive investments.
      The Nordea forecast anticipates slower economic growth in 2006, when the United States will be forced to tighten its economic policy, regardless of whether the Presidential election is won by George W. Bush or John Kerry.


Previously in HS International Edition:
  Opposition criticise draft budget as useless in reducing unemployment (20.8.2004)
  Finance Ministry official backs Danish model for fighting unemployment (9.8.2004)

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