Situation room report 5.8.2021 – latest developments in the labor market, households and firms

August 5, 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. 

The background information for the figures has been collected from the Statistics Finland’s registers.

Labor market

Labor market – earnings

The figure below shows monthly earnings in 2019–2021 based on the Incomes Register. Largest decrease in earnings seems to have been in May 2020. Earnings returned above previous years’ levels in February 2021. In May 2021 earnings decreased, although the level remained above previous years’ levels.

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 can be considered almost final.

The figures below show the year-on-year change in nominal and real labor earnings with respect to year 2019. In 2021 earnings seem to have increased adequately although consumer prices have also increased. For example, year-over-year inflation in June was -0.03% in 2020 and 1.97% in 2021. Data on inflation can be found on Statistics Finland’s website here.

Firms

Firms – revenue

The figures below display the development of monthly total revenue in selected regions: Uusimaa, Varsinais-Suomi, and Lappi.

The figures below display monthly total revenue development in selected industries: manufacturing, trade, logistics, and hotels and restaurants.

Firms – 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 development has been 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. Recently, the development seems to have slowed down again compared to years 2018 and 2019.

Next figure shows the number of new bankruptcy applications on monthly basis during the years 2019, 2020 and 2021. This figure reinforces the observations from the previous figure.

Firms – entry

The figure below shows the monthly number of entrant firms in Finland 2019 – 2021. Legal entries are firms that start their business in a legal sense, for example, acquire a company ID. Real entries are firms that start their economic activities. Information on real entries is interpreted from various data sources by Statistics Finland. Note that the data may update afterwards when more accurate information is received.

Below, the figures display the monthly number of entrant firms for selected industries: manufacturing, trade, logistics, and hotels and restaurants.

Firms – exit

The figures below show the monthly number and cumulative sum of firms that left the market in Finland. Legal exits are firms that terminated their business permanently in a legal sense. Real exits are firms that stopped their economic activities, but did not necessarily cease their business in a legal sense. Information on real exits is interpreted from various sources by Statistics Finland. Note that the data may update afterwards when more information is received.

Below, the figures display the monthly number of exits for selected industries: manufacturing, trade, logistics, and hotels and restaurants.

Households

Households – housing allowance

Below, we illustrate the number of applicants for Kela’s housing allowance from January to July in 2019 – 2021. In 2021, the monthly number of housing allowance applicants seem to have exceeded the monthly number of applicants in 2019 and 2020 in January, February and June.

Households – unemployment benefits

The figure below displays the number of applicants for Kela’s unemployment benefits from January to July in 2019 – 2021. The figure shows striking increases in applications in April and May 2020. In 2021, similar spikes in the number of applications are not observed.

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 from January to early August in 2019 and 2021. Compared to 2019, the number of applicants seems to be higher among women and men aged over 60 in 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 have increased the most among single family households, but also substantially among persons living alone.

  • 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 mediaCite 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
  • Figures and data: https://www.helsinkigse.fi/korona-data/