Helsinki Region economic indicators

Production output was on a marked rise during early 2010 in the Helsinki Region. Production grew by close to 2% in the first two quarters of the year. Nevertheless, production remained 10% lower in the second quarter than in early 2008.

Since 2005, the Region’s production has grown by 7%, while that of the whole country has grown by 3%. Fluctuations have been stronger in the Region in recent years than in the country.

At the end of the second quarter of 2010, industrial capacity utilization rates were on the rise, and 73% of the Region’s enterprises reported full capacity utilization. Orders had increased in the past months, and orderbooks were at normal levels.

Profitability has improved since last year. In the country, industrial conditions are near average levels.

The Region’s service sector reported slightly worse conditions than average at the end of the second quarter.

Consumer confidence is as strong in the Region as in late 2007, and every other consumer expects Finnish economy to improve in the coming year. In July, 38% of consumers expected unemployment to go down, while 20% expected it to rise in the upcoming year. One-third expected their personal finances to improve. Overall, consumer confidence is higher in the Region than in the country.

According to Statistics Finland, unemployment in the Region was 7.3% in the second quarter of 2010, down by 2% from the same period last year. Unemployment in the country was 9.6%, down by 0.5%. Overall, unemployment was 1% higher than the long-term average.

The number of people outside the workforce has grown by 6% since the beginning of 2009. Unemployment growth among younger age groups has been halted, but long-term unemployment has grown at a fast pace, by 45.7% in the Region and 34.2% in the country since 2009.

A strong decline in job openings has been halted, and there is a slight upturn.

The housing market shows growth, with the prices of old housing stock (apartments) up by 11% in the country and up by markedly more in the Region since 2009.

The number of people receiving a living allowance in the Region has increased markedly since the beginning of last year, but the growth slowed during the second quarter of 2010. Growth since the second quarter of 2009 is 8.6%. Altogether 65% of living allowance receivers live in the City of Helsinki, 18% in Vantaa and 17% in Espoo.