Finland's recession slipping towards depression, ministry expert says.
Finland's unemployment rate rose to 9.5 percent in January, prompting concerns of an economic depression.
The jobless rate rose to 9.5 percent in January, rising from 8.3 percent a year ago.
Finland recorded 38,000 more unemployed people in January compared to the same month last year, according to Statistics Finland. This brings January's unemployment total to 269,000 individuals, according to the number cruncher.
Officials at the Ministry of Economic Affairs and Employment have been watching January's jobless numbers with concern, especially when comparing them to figures from two years ago.
"Unemployment has increased by 60,000–70,000 people over the past two years. That is a very concerning figure," said the ministry's Permanent State Under-Secretary, Elina Pylkkänen.
"The rise in unemployment has spared no region, sector, profession, or educational level," she explained.
According to Pylkkänen, the jobless figures also point to other concerns, namely depression. She told Yle that in her view, Finland has drifted from a prolonged recession into a depression.
In a recession economic output declines, employment drops and unemployment rises. Technically, a recession is defined as two consecutive quarters of declining gross domestic product (GDP). A depression, on the other hand, is a prolonged decline and represents a more severe economic condition.
"The definition of a depression also includes a significant amount of unused production potential. In other words, we have labour and production capacity — machines and equipment — that are not being used. In my opinion, we can call this a depression, and for the unemployed, it is a pressing everyday reality," she added.
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Finland's Recession Slipping Towards Depression, Ministry Expert Says.