Thousands of workers face layoffs in Finland as economic forecast turns bleak

Thousands of workers are expected to receive layoff notices before Christmas, marking a concerning trend as the dream of many entrepreneurs heads toward bankruptcy this autumn. Nineteen esteemed economists assessed the economic landscape for the fall, describing it as bleak. Experts surveyed by Yle are almost unanimous in their predictions, indicating that many of the working population will face difficulties heading into the holiday season and beyond.

Chief economist Patrizio Lainà from the STTK union confederation forecasted a potential rise in unemployment to nine percent from the current 8.3 percent, echoing similar sentiments from other analysts. Currently, the job market is challenging, with job seekers finding it exceedingly difficult to secure new positions, compounded by a 20% cut in unemployment benefits after two months.

Despite these challenges, some positive signs of economic recovery are emerging. Economists point out that the worst phase of the downturn may be over, with slight growth forecasted. Statistics indicate that GDP growth has already begun. A significant portion of the population is also seeing financial improvements, with over two million employed individuals maintaining their jobs and receiving better compensation than in previous years.

However, consumer caution still looms, affecting business operations. Many entrepreneurs are struggling as increased costs and limited spending create a challenging environment, leading to a higher number of bankruptcies, particularly in the construction sector. Experts warn that the economic recovery may rely on strengthening order volumes, as the rate of bankruptcies is unlikely to decrease until then.

As summer transitions to autumn, the economic outlook remains complex; while some see a glimmer of hope, widespread caution persists among consumers and businesses alike.