April 29, 2021
The Helsinki GSE situation room continues to publish reports based on up-to-date data every other week. The reports follow the economy’s development from the labor market’s, households’ and firms’ perspectives. In this report, we focus on the labor market and households.
The background information for the figures has been collected from the Statistics Finland’s registers.
Labor market – earnings
The figure below shows monthly earnings in 2019–2021 based on the Incomes Register. Since April 2020, the wage sum has mostly been lower than for the same month in the preceding year, apart from a few exceptions, with the greatest fall happening in May. Wages for January 2021 are below the previous year’s level as well, although slightly higher than for 2019. In February and March 2021, the wage sum seems to be above the level of the previous two years.
When examining the earnings figures, please keep in mind that information is uploaded to the Incomes Register with varying degrees of lag, and the figures may be slightly updated later when new data becomes available. In practice, data older than one month, as for March 2021 in this report, can be considered almost final.
The figure below compares the industry level earnings in March from 2019 to 2021. Earnings in hotels and restaurants, support services and logistics appear to be lower in March 2021 than in the previous years.
The next two figures show the developments of wage sum in municipalities in 2019 – 2021. The first figure shows March wage sum in the largest 20 municipalities. The second figure shows the ten municipalities with the lowest and the highest changes in wage sum for 2021 from 2019 levels.
Within these municipalities, the largest increases are seen in Vaasa (13.4 %), Mustasaari (9.3 %) and Kajaani (8.9 %). Earnings decreased the most in Jämsä (-9.0%), Imatra (-8.5%), and Äänekoski (-7.6%).
Next, we examine the changes in earnings in March from 2019 to 2021 by age group. In March 2021, earnings fell most among those under the age of 30, and slightly among those aged 50 – 54, compared to the previous two years. In other age groups, earnings increased or remained approximately at the level of the previous year.
The next figure illustrates the relative changes in earnings by profession, listing professions that experienced the largest reductions or increases in earnings in March 2021 from March 2019.
Labor market – furloughs and layoffs
The figure below shows the weekly new furlough and unemployment spells from 2019 to 2021. The amounts of new spells increased substantially in the beginning of the crisis, but new entries into unemployment or furloughs have in general declined afterwards. Amounts of new furlough spells, however, have continued to be significantly above the levels of the preceding year since March 2020.
Labor market – employment
Below, we present the weekly amounts of employed in 2019 – 2021. Here, a person is considered employed if they receive at least 1 000 euros of wage income over a month. According to this definition, we find that the number of employed has been significantly smaller in early 2021 than in previous years, although slightly higher than it was at the lowest point of 2020 in April. Employment data is slower in updating than earnings data, so the first half of March should be considered with caution.
Firms – the number of bankruptcy applications
The figure below shows the development of cumulative amount of bankruptcy applications during years 2018-2021. From the figure we can see that this developmend has bee very similar during years 2018 and 2019. In 2020 however, the amount of filed bankruptcy application was significantly lower after the beginning of summer. In January 2021 the development was slower that in January 2020, but seems to have increased later on.
Next figure shows the amount of new bankruptcy applications on monthly basis during years 2019, 2020 and 2021. This figure reinforses observations from the previous figure
The following figures show the quantity of new bankruptcy applications during years 2019, 2020 & 2021 categorized by conty, industry and firms’ size class.
It is noteworthy that firms with 26-250 employees are the largest group among firms filing for bankruptcy, because firms within this size class are very significant group in terms of employment and wages.
Households – housing allowance
Below, we illustrate the number of applicants for Kela’s housing allowance from January to April in 2019 – 2021. We find that especially in February 2021 the number of applicants was above the levels of the previous two years. The information for April 2021 is not yet final, but will be updated.
Households – unemployment benefits
The figure below displays the number of applicants for Kela’s unemployment benefits from the beginning of the year in 2019 – 2021. In January 2021, the number of applicants was at the same level with 2020, but below the level of 2019. In February 2021, the number of applicants was slightly higher compared to the previous years. In March 2021, the number of applicants was higher compared to 2019, but significantly below the level of 2020. The information for April 2021 is not yet final, but will be updated.
Please note that these figures do not include the earnings-related unemployment allowance paid by unemployment funds. Additionally, the figures illustrate the numbers of new applications rather than all those collecting benefits of a given type.
In the figure below, we compare the number of applicants for Kela’s unemployment benefit by age and gender in early 2019 and 2021. Compared to 2019, the number of applicants seems to be higher among women aged 20-24 in early 2021. In turn, the number of applicants is lower especially among men and women aged 50-60.
Finally, we examine the amounts of applications by household type. Compared to 2019, the number of applicants for Kela’s unemployment benefit was lower among persons living alone in early 2021. Amounts of furloughed applicants increased the most among single family households.
- Additional information about the Helsinki GSE Situation Room consisting of researchers from Helsinki GSE, University of Turku, VATT Institute of Economic Research and Statistics Finland: https://www.helsinkigse.fi/research-group/covid-19/
- Additional information about the report: Otto Toivanen, otto.toivanen [at] aalto.fi
- Suggested citation in media: Cite Helsinki GSE Situation Room as the source with a link to www.helsinkigse.fi website.
- Suggested citation in academic publications: please contact otto.toivanen [at] aalto.fi