Helsinki – In November, Finland recorded the highest seasonally adjusted unemployment rate in the European Union (EU) at 10.6%, surpassing Spain, which had a rate of 10.4%, according to data released by the EU statistics office, Eurostat.
This significant shift occurred as Finland’s unemployment rate rose by two tenths from October, while Spain’s rate decreased by one tenth.
The Finnish Ministry of Employment and Economic Affairs attributes the rise in unemployment partly to structural reforms aimed at reducing debt and enhancing productivity within companies.
“The focus on increasing productivity has been achieved by cutting costs rather than by expanding operations and investing,” stated Elina Pylkkänen, deputy secretary of state at the ministry, in an interview with national broadcaster YLE.
These cost-cutting measures have led to job reductions in both private and public sectors, contributing to the highest unemployment rate in Finland in the last fifteen years amid economic stagnation.
Additionally, there has been a notable increase in individuals, including many migrants, seeking to enter the labor market, while job vacancies have decreased.
The Bank of Finland projects that the nation’s economy will grow by 0.8% this year, three tenths lower than the estimates provided by the Ministry of Finance.
Eurostat reported that Finland’s unemployment rate for November was 10.1%, but noted that it used trend data for Finland, Germany, the Netherlands, and Sweden, differing from the seasonally adjusted data used for other EU countries. (January 8)
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