Dismissals doubled in 2009

SAK wants economic stimulus to continue

(Helsinki 11.01.2010 – Juhani Artto) In 2009 almost 20,000 employees were given notice in Finland. This was double that of the previous year. And, the number of employees whose jobs were under threat in company-based mandatory consultations between employer and employee representatives had even trebled.

The main trade union confederation SAK -which has collected this data from public sources – published its annual summary of dismissals etc. on Thursday.

– So far the employment situation is not showing any signs of improvement. Probably it will weaken further in the coming months, says Janne Metsämäki, the head of SAK’s unit of economic and industrial policy.

– Insecurity at work places and in companies will continue. Therefore, it is vitally important that much needed stimulation of the economy is not halted prematurely.

In 2009 Finnish GDP probably contracted by more than 7 per cent. This year it is predicted to grow from 1.5 to 1.8 per cent according to the estimates of several institutions. However, from past recession experiences we would do well to remember that an increase in employment does not immediately follow from economic development but tends to come after a time lag or delay.

From November 2008 to November 2009 the number of unemployed, registered by the Ministry of Employment and the Economy, rose from 219,000 to 273,000 persons.