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New data model helps discover causes of labour market mismatch

Ministry of Economic Affairs and Employment
Publication date 22.6.2022 8.29 | Published in English on 22.6.2022 at 16.40
Press release
Two cookers work in a large kitchen.

The labour market roadmap project aims to improve the match between jobs and workers. The data model built in the project uses data in more diverse ways than before. In this way, the special characteristics of different sectors can be considered in more detail in order to create a more accurate picture of the types of open vacancies, labour reserves and occupational differences. 

The number of open vacancies is at a record level. According to studies by the Ministry of Economic Affairs and Employment, as many as 50 per cent of employers that have recruited employees have had difficulties in finding the needed workforce and about one third have not found a suitable employee for all employment relationships. 

On the other hand, employment has grown rapidly since the coronavirus pandemic and the Government has reached its employment rate target of 74 per cent (75 per cent based on the previous calculation method). However, there are still many unemployed jobseekers, which indicates problems in the matching of jobs with workers.  

Data model provides a more accurate picture of open vacancies

The objective of the labour roadmap project launched by the Ministry of Economic Affairs and Employment in autumn 2021 is to improve the availability of labour in all sectors throughout Finland. An important part of the project is building a data model which will provide a more accurate and up-to-date picture of the causes for the labour market mismatch. 

The new data model shows, for example, the type of open vacancies, skills available in different labour market reserves, and challenges that may hinder the employment of unemployed jobseekers. 

“The Government’s economic policy supported both jobs and employees during the coronavirus pandemic, and the Finnish economy has recovered quickly. In this new situation, a better match between jobs and workers is important for the whole of Finland. Every piece of information that can improve our understanding of the factors related to the demand and supply of labour and the needed measures is valuable,” says Minister of Employment Tuula Haatainen

Situation picture considers special characteristics of sectors 

A situation picture will be drawn up for each sector during this year in close cooperation with labour market organisations. The Service Centre for Continuous Learning and Employment (JOTPA) is also closely involved in the labour market roadmap work, offering its insights into issues related to labour mobility.

During this year, the working groups have produced updates on the causes of labour market bottlenecks in the accommodation, catering, tourism, transport and logistics sectors as well as the built environment and technology industries and services. 

The data model combines statistical data from more sources than before. The model can also weight and filter data to better take into account the special characteristics of different sectors and professions. One of the goals of the model is also to clarify the picture of how much and what kind of work-related immigration Finland needs.

“A closer look at the data on job vacancies reveals that a significant number of vacancies are either short-term or part-time. With a more accurate situation picture, occupational differences in the availability of labour will also become more visible,” says Under-Secretary of State Elina Pylkkänen

Roadmap project to continue until the end of 2022

Four groups have started their work in the spring: education, culture and communications; natural resources, food production and the environment; business and administration; and processing industry and production. The Ministry of Social Affairs and Health is currently preparing a roadmap for the health and social services sector. 

The data model and its findings have also been presented to the project’s steering group, which includes representatives of labour market organisations. The roadmap project will continue until the end of the year.

Iiris Niinikoski, Special Adviser, tel. +358 295 047 372
Elina Pylkkänen, Under-Secretary of State, tel.  +358 295 047 474

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