The Recession in Finland and the Labour Market for Academic Degree Holders

Abstract

The latest period of recession in Finland has been deeper than ever. With about 20% of the labour force out of work, unemployment has reached record figures, but there are also new qualitative features in the crisis. The structure of the labour market is changing. Although the situation now seems to be improving the recession will last for a long time and the changes taking place are painful. Structural changes are occurring in both the economy as a whole and the organisation of working life. The activities of the public sector have been cut back in both the service and administrative branches, and in companies and non-profit organisations, the number of personnel has decreased. Only essential staff have stable jobs; other employees are given temporary contracts and often services are bought from outside consultants. The trend is towards a more flexible way of organising work. The recession has also influenced the situation of academic degree holders, which had been quite satisfactory before, although having a higher education qualification still opens up better opportunities for employment. In 1993 the overall unemployment rate was 18%; it was only 5% for master-level degree holders and 7% for bachelor-level degree holders (figures from the Central Statistical Office of Finland). However, the employment situation varies between different groups. Graduates with technical education and young degree holders have had the most problems in finding work [1]. The building trade, for example, is in serious difficulties; the unemployment rate for architects working in the private sector is 50%, according to the Finnish Association of Architects. Opportunities to change profession are restricted, because their education is specific and their professional socialisation is often strong. It is difficult for degree holders in general to get a job outside their own field so they tend to remain unemployed (Haapakorpi, 1994). At the beginning of the 1990s opportunities for graduates to obtain employment were at their worst. The most difficult problem is to reach the first hurdle, which is usually some kind of employer's test of suitability. Once the applicant has passed the test, subsequent stages of his or her career are easier to deal with. By working before graduating, students help to improve their chances of getting a job after taking their degree; participation in working life leads to connections in