Labour Ministry predicts 13,000 new jobless next year

Pace of events came as a surprise to Labour Minister Cronberg

Tarja Cronberg

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The past two months have seen a number of new announcements of job cuts and co-determination talks aimed at personnel reductions. Although the prospect of darker economic times has been expected, the surge in job cuts this autumn has come as a surprise to Minister of Labour Tarja Cronberg (Green) .
      “This kind of news was expected from the forest industry, but in other fields it can be seen that expectations have really declined”, she said, commenting on fresh news of job cuts in a cyclical survey for business on Tuesday.
      The latest forecast admits for the first time that unemployment figures are likely to rise. Until now the ministry has been content with predicting a decline in the growth of employment.
     
According to the forecast, 13,000 Finns will lose their jobs in 2009. The figure is not very large compared with the fall in the number of those in employment, which is expected to be in the neighbourhood of 30,000.
      Cronberg says that growth in the number of people classified as unemployed will remain moderate, because of labour market flexibility.
      “Students will study, and people will retire earlier.”
      Cronberg also trusts that companies will think about the future, and an impending shortage of labour. Temporary layoffs can be a stopgap solution, allowing companies to keep a hold on employees who will be needed later.
     
The number of jobs is expected to decline especially in the service sector, construction, and manufacturing. One indication of harder times is that the technology sector, which has generally been seen as a strong one, has announced a need to reduce staff.
      Fighting unemployment focuses on three different means: corporate and investment support, active labour policy, and training. Corporate and investment supports will target export companies, for instance, as well as corporate activities in communities experiencing sudden structural change.
      In dealing with unemployment, Cronberg sees training as the key word. Early next year the government has earmarked money for retraining, which an employee can participate in during a temporary layoff.
      Another important approach is sufficient employment services. Cronberg notes that there has to be enough staff in local employment offices.
      Cronberg calculates that the money that has been earmarked will be sufficient for dealing with 10,000 new unemployed. More funds will be needed if a sudden structural change extends throughout Finland.


Previously in HS International Edition:
  Nokian Tyres could temporarily lay off 1,000 employees (3.11.2008)
  Major unemployment threat looming over Hanko as imports of cars grind to a halt (30.10.2008)
  Becoming unemployed surest way to fall into poverty (20.10.2008)

Links:
  Ministry of Employment and the Economy

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