Economic recession casts a shadow over regional near-term prospects
The recession is reflected in cautious consumer and business activity, in addition to the weakened employment situation. In about half of the regions, the business environment has deteriorated compared to last spring, and the situation is expected to remain unchanged over the next six months. Regional Development Prospects publication sheds light on the current situation and future outlook of the regions.
Labour demand has dwindled
There are significantly fewer job openings than a year ago, and correspondingly more unemployed and furloughed job seekers. Unemployment is expected to remain stable in most areas over the next six months. Looking a year ahead, unemployment is expected to decrease.
The availability of skilled labour has temporarily increased as the economic situation has weakened. However, declining population growth and a reduction in the labour force continue to strongly impact the outlook and vitality of regions.
Business prospects better over the course of one year
The ongoing Russian invasion of Ukraine affects several sectors, along with a slowdown in construction and uncertainty in the export industry. Difficulties in municipal finances and savings in wellbeing services counties also affect assessments of regional development. Nevertheless, the situation is expected to remain largely unchanged in most areas, with only eight counties anticipating further deterioration in the outlook over the next six months.
Over the course of one year, the business outlook is assessed to be significantly better, with all but one region expecting the situation to either improve or remain stable.
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Economic recession casts a shadow over regional near-term prospects (tem.fi, in Finnish)