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4 Inactive population

4.1 Around one-third of the population in the inactive population in 2019

In 2019, there were 1,378,000 persons in the inactive population, i.e. 33 per cent of persons aged 15 to 74. The number was 4,000 lower than in 2018. The size of the inactive population decreased most in the 55 to 64 age group, by 9,000 persons. In the Labour Force Survey, the inactive population refers to persons who were not employed or unemployed during the survey week. Those in military service are also included in the inactive population.

The Labour Force Survey collects data on what the persons in the inactive population see as their principal activity. The majority of them, 63 per cent, reported they were on old-age or disability pension or chronically ill in 2019. Of the inactive population, 22 per cent reported they were students or pupils. Five per cent were caring for their own children or some other relative. (Figure 20.)

Figure 20. Persons in the inactive population by main activity* in 2019, persons aged 15 to 74, %

*) Data concerning main type of activity are based on the respondent's own reporting

4.2 Number of persons in disguised unemployment fell further

Persons in the inactive population who would want gainful work and would be available for work within a fortnight, but who have not looked for work in the past four weeks are considered persons in disguised unemployment in the Labour Force Survey. Persons in disguised unemployment can be considered as potential additional labour force.

There were a total 114,000 persons aged 15 to 74 in disguised unemployment in 2019, down by 14,000 from the year before. The number of persons in disguised unemployment declined for the third year in a row. (Figure 21.)

The assumption that no work is available was the most common reason among persons in disguised unemployment for not seeking employment. It was reported in 2019 as the reason by 24 per cent of persons in disguised unemployment. Studying was reported as the reason by 18 per cent of persons in disguised unemployment.

In 2019, most persons in disguised unemployment were found in the 15 to 24 age group, 30,000 persons. One-half of them reported studying as the reason for disguised unemployment. There were nearly as many persons in disguised unemployment, 27,000 persons, among those aged 65 to 74. Around one-half of them considered as having already retired completely. Of persons aged 55 to 64, there were 23,000 in disguised unemployment, of whom 38 per cent did not believe they could find a job.

Figure 21. Persons in disguised unemployment by age group in 1999 to 2019, %

4.3 Eight per cent of young people outside work and education

This Section describes such persons aged 15 to 24 who are not employed and have not participated in any type of education in four weeks before the survey and who are not performing compulsory military service either. Here, participation in education refers to both education leading to a qualification and participation in various types of courses.

In 2019, there were a total of 48,000 young people not working, studying or performing compulsory military service, which represented eight per cent of the entire 15 to 24 age group. The majority of them, 37,000, were aged between 20 and 24. The number of young people outside work and education went down in total by 3,000 persons, or by five per cent from 2018. (Figure 22.)

Figure 22. Young people aged 15 to 24 who were not working, studying or performing compulsory military service in 2005 to 2019, %

For men, the share of those outside work and education has fallen starting from 2014 and for women from 2015. The shares of men and women were almost on the same level in 2018 and 2019. (Figure 23.)

Figure 23. Percentage share of persons aged 15 to 24 not working, studying or performing compulsory military service in the population of the same age in 2005 to 2019, %

Source: Labour Force Survey 2019. Statistics Finland

Inquiries: Ulla Hannula 029 551 2924, Tatu Leskinen 029 551 3285, tyovoimatutkimus@stat.fi

Director in charge: Jari Tarkoma

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Updated 7.5.2020