The trend employment rate rose in May to 71.4 per cent, reaching its highest level since the recession of the early 90s, and the employment statistics for the start of the year also look encouraging in service sectors.

“We are currently at the peak of the economic expansion, and this is also reflected in the employment statistics. The number of people in full-time employment has increased strongly, but part-time work has also increased, especially in service sectors”, says economist Olli Toivanen at Service Union United PAM.

According to the Ministry of Economic Affairs and Employment, there were around 7500 job vacancies in the major service sectors at the end of May 2018, which according to the economist is an excellent figure.

”If you take a close look at service sector employees, the employment situation is now better than it has been for a long time. Skilled people are in demand and when they are found they are being hired”, Toivanen states.

In the major PAM sectors there were 25% more job vacancies at the start of the year (January−May) than at the same time in 2017.
“The share of temporary jobs also appears to be at about last year’s level”, says Toivanen as he runs through the job placement statistics for May.

Employment trend between sectors varies

The employment situation varies somewhat depending on the sector. At the start of the year employee numbers increased most in retail (+4,32%) and decreased most in wholesaling (-4,19%) compared to 2017.

Hours worked by retail employees, however, have lagged behind the employment trend, and are up only 1.89% in the early year.

“There have been more jobs on offer in retail, and vacancies are remaining unfilled for longer”, Toivanen points out.
It is particularly interesting to observe the employment trend in retail from an economist’s perspective.

“Especially with all the talk about digitalisation and how automation and online commerce will cut the need for labour in retail”, he says.
“So it’s no surprise that hours worked are growing more slowly than the employment numbers. Will the jobs increase in retail continue after the summer? That remains to be seen.”

The situation is different in the hospitality sector. There the growth in employee numbers at the start of year has been more moderate (0.3%). According to Toivanen there were plenty of vacancies early in the year, but now there are less because summer seasonal workers were hired in January and February.

“There are also plenty of vacancies in the real estate sector compared to jobseekers. Vacancy numbers have been exceptionally high in the security sector compared to last year. The sector has grown strongly in recent years, and there are plenty of permanent jobs, not just seasonal work.”

Employment numbers typically drop after the summer in sectors that employ lots of seasonal workers. In the autumn some seasonal workers go back to being students, for example.

This is a good time to be completing training

According to the economist now is a good time to be completing training for service sectors.
“Especially for young service sector workers who are prepared to move for work, the timing is perfect”, is Toivanen’s advice.

The latest business survey by the Confederation of Finnish Industries shows large service sector companies nonetheless expect the growth in employee numbers to tail off somewhat from the high expectations early in the year. This does not necessarily mean, however, that service sector companies are no longer interested in hiring skilled workers.

“If anything, staffing expectations show signs of labour shortages. Companies are already finding it hard to fill vacancies”, Toivanen explains.
”So skilled workers with qualifications are in an exceptionally good negotiating position in the labour market since the economic outlook remains positive.”

Even though service sector job prospects are good at present, the economist reminds those completing training of the importance of getting information on employers’ backgrounds and the collective agreement in the sector.

“It is also important to read through your employment contract properly and be aware of all the terms and conditions before you sign. It’s an easy way to save a lot of trouble, and it avoids surprises, for example when it comes to the number of working hours on offer.”