Labour Force Barometer: Most of Finland suffers from labour market mismatch
This autumn, the revised Labour Force Barometer focuses on the future prospects of the technology industry and the social welfare, health and wellbeing sectors. The greatest shortage of labour is in the health and social services sector, where skilled workers are needed for the care of older people, in particular. The outlook for the technology sector is expected to improve after next summer.
These are the results of the Labour Force Barometer for autumn 2023. Compared with its predecessor, the Occupational Barometer, the Labour Force Barometer provides more comprehensive and consistent information on labour and competence needs in all Finland’s ELY Centre areas.
Jobseekers’ skills do not match with available jobs
According to the Labour Force Barometer, there is no labour shortage in any parts of Finland at the moment and the situation is not expected to change in the near future. However, most areas suffer from a mismatch problem: there are vacant jobs, but the unemployed jobseekers do not have the necessary skills for the jobs. Unemployment is expected to increase and the number of open vacancies to fall.
In the near future, basic skills, such as professional qualifications and skills as well as domestic and foreign language skills, will be in demand. Multicultural and interaction skills and international competences will also be needed. There will also be a demand for a wide range of digital competences at different levels and expertise related to artificial intelligence in different sectors and professional groups.
Greatest labour shortage in health and social services
There is a shortage of labour especially in the health and social services sector, where digital and language skills are also lacking. The chronic labour shortage in the health and social services sector is not expected to improve soon. In particular, the shortage of nurses and practical nurses is anticipated to continue in the near future.
Clean transition brightens the gloom in the technology sector
A significant decline in the construction industry, shrinking order books in manufacturing, rising raw material prices and other factors causing uncertainty are putting pressure on the technology industry. The estimates show, however, that open vacancies in the technology sector will continue to go unfilled in the future too.
On the other hand, investments in the clean transition, which will increase demand for labour in many regions, will give a boost to the sector. There is plenty of demand in the ICT industry still, even though the demand has fallen compared to previous estimates. Order books are expected to start growing next summer.
What is Labour Force Barometer?
The Labour Force Barometer data can be utilised by citizens planning their careers, employers and educational and training institutions. The data is collected for each ELY Centre area. In October 2023, 50 discussion events were organised involving key experts for the regions, sectors and significant employers.
Compared with the Occupational Barometer, the Labour Force Barometer offers a more comprehensive outlook on the labour market and its needs, because it examines not only occupational titles but also competence needs. The new sector-specific approach provides a more accurate picture of labour needs.
Reino Savolainen, Senior Specialist, Ministry of Economic Affairs and Employment, tel. +358 295 047 268