Regional Development Prospects: The economic and employment situation in the regions has deteriorated
The outlook for business and industry has worsened in most regions, but the situation is brighter in Lapland.
The effects of Russia’s invasion of Ukraine are visible in many sectors. High interest rates and rising prices put pressure on consumption. In particular, the difficulties faced by the construction and forest industries and the adjustment measures in those sectors have regional impacts.
According to the publication, 34 sub-regional units expect a downward trend in business and industry, 27 anticipate it to remain at the current level and five envision an improvement. In the sub-regional units of Rovaniemi and Fell Lapland (Tunturi-Lappi), positive expectations are mainly driven by the upcoming tourism season. The good situation in the mining industry is also reflected in the prospects.
However, the economic and employment situation is expected to improve over the year and estimates extending to autumn 2024 are already considerably more positive.
Demand for labour has fallen due to the weakening economy. In particular, the number of laid-off persons has increased, and the number of unemployed jobseekers is growing moderately. However, the availability of skilled labour remains the most significant challenge in the labour market.
However, the growth in unemployment is estimated to be short-lived, as most sub-regional units anticipate a more positive trend in a year’s time.
What is Regional Development Prospects?
Regional Development Prospects is a biannual review produced by the Centres for Economic Development, Transport and the Environment (ELY Centres) and other regional developers on the current situation and short-term prospects in the regions. The review includes assessments on business and industry, unemployment rate and the availability of skilled labour. The review was conducted in October this year.