July 2, 2020
The Helsinki GSE situation room continues publishing reports based on up-to-date data during the summer vacation season. The reports, which are published every other week, follow the economy’s development from the points of view of the labor market, households and firms.
Many figures use the spring of 2019 as a comparison period. The background information for the figures has been collected from the Statistics Finland’s registers. The latest available background information from Statistics Finland is from the end of 2018.
Labor market – wage sum
The next figure shows the sum of wages by month in 2019 and 2020 based on the Income Register. In April, the wage sum was 5% smaller in 2020 compared to 2019. May followed April’s pattern, and the total labor earnings have fallen close to 7 billion euros per month, which is more than 0.5 billion less than in 2019.
The below figure compares May’s wage sum between 2020 and 2019 by industry. For instance, the figure shows that the largest decrease in euro terms happened in manufacturing and logistics.
The following three figures show the total labor earnings in Finnish municipalities in 2019 and 2020. The first figure shows the total labor earnings in Finland’s 20 largest municipalities, while figure two shows the percentage difference. The largest relative differences are found in Pori, Vantaa and Helsinki. The third figure shows the ten municipalities which have performed best and worst respectively.
The next two figures show May’s labor earnings by age group. The figures show that labor earnings have decreased in all age groups. In relative terms, under 25 year olds have suffered the largest decrease.
Labor market – furloughs and layoffs
The below figure shows the beginning furlough and unemployment spells by day for 2019 and 2020. The largest spikes in furloughs occurred at the end of March and the beginning of April. However, the beginning of June has also seen significantly more furlough spells this year compared to 2019, some days even reaching above 10 000.
The next figure breaks down the sum of new unemployment and furlough spells in 2019 and 2020 by industry. The numbers have grown in almost all industries, with the largest increases in manufacturing, trade, and food and accommodation services.
Households – housing allowance
The number of applications for Kela’s general housing allowance started to exceeded the level of last year as the state of emergency came into effect. By the end of April, around 30 000 more applications had arrived to Kela compared to the corresponding time in the previous year. Since May, the growth in the number of applications has been closer to last year.
The growth in the number of applications for housing allowance has increased the most in Uusimaa, where there have been nearly 40% more applications in 2020 compared to the corresponding period in 2019. Meanwhile, the growth has been smallest in North Karelia (Pohjois-Karjala).
Households – unemployment benefit
The number of applications to Kela’s unemployment security exceeds last year’s by more than 100 000 applications. The numbers started to grow sharply a week after the state of emergency came into effect. Since May, the flood of applications has slowed down, but the growth still remains slightly faster than last year.
The coronavirus crisis has hit all regions. Analysing by region, the restrictions of the state of emergency have been the harshest on Uusimaa, where the number of applications has increased by more than 200 percent. Even in North Karelia (Pohjois-Karjala), the applications have nearly doubled.
The restrictions during the state of emergency and social distancing hit service industries the most. The characteristics of service industry employees are reflected in the sex and profession distributions of those applying for Kela’s unemployment security. The fact that most of the applicants belong to the younger age groups, follows from their lower rates of belonging to unemployment funds and fulfilling employment conditions.
Of those furloughed during the state of emergency, nearly three fourths belong to single-family households. Comparisons with last year’s figures show that the state of emergency has affected families more strongly than those living alone.
Firms – share of firms with furloughs
The below figures show what share of all firms have at least one furlough. They do not consider what share of employees in the firms that have been furloughed. The figures show numbers by industry, county and the size class of firms (in terms of employees). The figures show, for example, that the largest firms have a comparatively higher share of firms that have undertaken furloughs.
Firms – share of furloughed employees
The below figures show the share of employees that have been furloughed, in firms that have furloughed employees. Each point on each horizontal line describes the situation for a particular month with the month numbers marked inside the points. E.g., in the first figure, a point with number four inside it shows what share of employees was furloughed on average by firms of that particular industry in April, if any employees were furloughed – the numbers do not include firms with 0 percent of employees furloughed. The figures show the numbers by industry, county, and the size class of firms (in terms of employees). They show, for example, that the largest firms have furloughed the smallest share of their employees.
Firms – Business Finland subsidies
The below figures show the share of firms that have received at least one subsidy from Business Finland up to a certain date. The figures show the numbers by industry, county and the size class of firms (in terms of employees).
Firms – bankruptcy applications
The last figure shows the cumulative number of bankruptcy applications in a given year up to a certain date. The x-axis shows a date, and the y-axis the total number of bankruptcy applications left by that date since the start of the year. The years 2018 and 2019 are used for comparison with the year 2020. Even though 2020’s numbers were higher in spring, the cumulative number of bankruptcies still came close to 2018 and 2019 by the middle of June,
- 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