Chronically unemployed persons make up one-third of all the unemployed

Finland has about 120,000–140,000 people, i.e. 4–5 per cent of the labour force, who have been without work for a long time, i.e. are chronically unemployed. They account for about 30-40 per cent of the unemployed.

The data are derived from a study that examined the extent of long-term and structural unemployment in Finland during the years 2005–2013. Chronically unemployed refers to persons who have been out of work for at least two consecutive years. Almost half of the chronically unemployed have been unemployed for more than five years.

“The number of chronically unemployed persons is greater than the long-term unemployment recorded in statistics. Statistically, unemployment is considered to end with employment measures, such as training or an employment trial. These, however, do not necessarily lead to employment,” says the author of the study, Senior Researcher Simo Aho of the University of Tampere.

One in three has had a career

A substantial share of the chronically unemployed has been excluded from the open labour market for a long time. One-tenth has not been employed on the open labour market for a long time, or has never had employment on the open labour market. One in three has had a career. Many have short-term work experience, and the vast majority have taken part in employment and training measures.

Chronic unemployment becomes more common with age and decreases as the level of education increases. However, the chronically unemployed also include many young and educated persons, although fewer than the unemployed on average. Among immigrants, a greater share of unemployment is chronic than among other Finns.

Employment is possible

Some of those who have been affected by long-term unemployment succeed in getting a good foothold on the open labour market. For example, 12 percent of the chronically unemployed under 60 years of age in 2008 had a stable career five years later.

“The reason for chronic unemployment is the problem of mismatching. In Finland, there is an abundant amount of at least potential labour whose know-how is in very little demand on the open labour market”, Simo Aho comments.

The study determining the number and composition of people long outside the open labour market, as well as the dynamics of unemployment in Finland in 2005–2013, was carried out as part of the implementation of the 2014 Government plan for analysis, assessment and research. The report (in Finnish) is available on the Government analysis, assessment and research activities website.

More information on the Government analysis, assessment and research activities: tietokayttoon.fi/en

Inquiries: Simo Aho, Senior Researcher, University of Tampere, tel. 050 318 6059, and Kimmo Ruth, Labour Market Counsellor, Ministry of Employment and the Economy, tel. 0295 048 073

English translation of the press release published on 2 May 2016