In recent months, more architects have been laid off than ever before in history, according to Akava’s report. This increase in unemployment among those with higher education could be a sign of a broader increase in unemployment across Finland, says Chief Economist Pasi Sorjonen. The highly educated unemployment rate is approaching the highest figures of the corona era and is expected to reach that point by April, according to Akava’s new unemployment and layoff review.
The trend may also indicate a wider rise in overall unemployment, as estimated by Akava. The Ministry of Labor and the Economy (TEM) reported that by the end of February, there were approximately 31,600 more unemployed and full-time furloughed individuals than a year earlier. However, there was a slight decrease in layoffs among people without higher education towards the end of 2023. Specifically, there were 20,560 more unemployed individuals, excluding full-time layoffs, compared to the previous year, with about 6,250 of them having higher education. Unemployment among those with higher education is increasing steadily but not as rapidly as among non-higher-educated individuals.
Sorjonen emphasizes that consumer confidence needs to be strengthened to help combat unemployment and its economic impacts. Jobs for the highly educated often involve creative planning and construction work, which may be more affected by economic downturns. On the other hand, performing jobs typically held by non-higher-educated individuals may be more stable but are still affected by economic conditions.
However, Sorjonen also expresses concern over the weakening of consumers’ real earnings and its impact on purchasing power. Real wages have fallen to levels not seen in over a decade, which could dampen demand for big-ticket items like cars and apartments. This could have ripple effects across various sectors of the economy. To address these challenges
