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National Audit Office’s Annual Report to Parliament 2020

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Dynamic visualizations on economy and employment

On this page, you can view dynamic visualizations that provide more information on topics linked with economy and employment. The visualizations illustrate the development of public expenditure relative to GDP in different countries in the next 50 years, shifts in the labour market in 2017–2019, and the impacts of the regional employment experiments of 2017–2018 on the unemployment rate. In addition, the visualizations present more detailed findings of the financial audits of accounting offices 2017–2019.


 

The figure illustrates how the ratio of total age-related expenditure to GDP will develop in the EU countries, Norway and Great Britain according to different scenarios in a time span of about 50 years. Age-related expenditure includes health care, long-term care, pension, education, and unemployment expenditure.

At the top left of the figure, you can opt to view the data on several countries according to a certain scenario (“View by scenario”) or the data on a certain country according to several different scenarios (“View by country”). Select a scenario or country from the drop-down menu at the top right. The scenarios include, for example, the high life expectancy scenario (+2 years), the lower birth rate scenario (–20%), and the higher employment rate scenario (+2 percentage points). You can add scenarios or countries by clicking on them at the bottom of the figure and remove them by clicking on them again.

The figure shows that the future development of public expenditure is highly dependent on the background assumptions used in the calculations. When the growth of age-related expenditure in Finland is examined according to different scenarios, it is obvious that the background assumptions have a significant effect on the results. If it is assumed, for example, that the employment rate will increase more rapidly in the high age groups than in the basic scenario, the expenditure will not grow as fast as in the basic scenario. On the other hand, if it is assumed, for example, that immigration will be lower than in the basic scenario, the expenditure will grow faster than in the basic scenario.

The data on the development of age-related expenditure illustrated in the figure is based on “The 2018 Ageing Report” by the Working Group on Ageing Populations and Sustainability (AWG) of the EU Member States and Commission. The data presented in the figure has been published in 2018 and is updated every three years. 

View ”The 2018 Ageing Report” on the website of the European Commission.


The group of the unemployed is constantly changing

 

In the graph, you can view the shifts taken place in the labour market compared with the preceding quarter. In the menu above the graph, you can select a quarter between 2017/1—2019/3 and gender. To highlight a shift flow, move the cursor on it. The figures included in the graph are presented in table format below the graph.

The graph shows that most of the employed people were also employed during the preceding quarter. The same applies to people outside the labour force, i.e. students, household workers, conscripts, and similar groups. In these groups, the quarterly shifts in the labour market are relatively small.

The biggest relative changes have taken place in the group of unemployed people. In the fourth quarter of 2018, for example, 76,000 people remained unemployed, 56,000 became employed, and 48,000 moved outside the labour force. Correspondingly, people moved to the unemployed both from the employed (38,000) and from outside the labour force (48,000). The data shows that the unemployed are not a group that remains stable over time but a constantly changing group from which people move both to the employed and outside the labour force and back. Some people remain unemployed for several years, others only for a few weeks.

The statistics illustrated in the graph are based on the data of the monthly Labour Force Survey of Statistics Finland. The Labour Force Survey collects statistical data on the activities and participation in the labour market among the population aged between 15 and 74. The statistics on labour force flows are produced by building a longitudinal sample from the samples of two successive quarters. The sample is limited to the respondents who have been included in the samples in both quarters This makes it possible to view a change in a respondent’s labour market status between two survey times.


Regional employment experiments reduced unemployment

Visualisointi – Työllisyyskokeilun vaikutus työttömyysasteeseen

The five ELY centre areas in which the treatment municipalities (23) of the regional employment experiments are located are highlighted in the map. The experiment lasted from August 2017 to December 2018. The boundaries of the treatment municipalities are indicated by a thick line. Those municipalities in the ELY centre areas whose boundaries are not indicated by a thick line did not participate in the experiment.  To select the period you wish to examine, use the slider above the map.

The change in the unemployment rate (percentage points) between the start and end date of the selected period is indicated by colour codes. The negative scale (shades of blue) illustrates a decrease in unemployment, whereas the positive scale (shades of red) illustrates an increase in unemployment during the period selected. For example, examination of the period from July 2015 to December 2016, i.e. two years before the experiment, shows that there was a lot of variation in the change in the unemployment rate: unemployment increased in some municipalities and decreased in others. This variation appears both in the municipalities that later participated in the experiment and in the other municipalities of the same area.

During the experiment, i.e. between July 2017 and December 2018, the unemployment rate fell in most of the municipalities. The unemployment rate did not grow in any of the treatment municipalities contrary to some of the other municipalities in the ELY centre areas concerned.

The data presented in the map is based on the municipality-specific unemployment figures of the employment register of the Ministry of Economic Affairs and Employment. The figures can be found under “Labour Market” in the open Statfin database (pxnet2.stat.fi) of Statistics Finland.


Financial audit findings 2017–2019

Visualisointi – Tilintarkastuskertomus visualisoituna: huomautukset

In the figure, you can view the audit findings of the National Audit Office for 2017–2019. The data presented in the figure is based on the financial audit reports of the accounting offices and discloses whether

  1. the final accounts present true and fair information
  2. the internal control of the accounting offices is effective
  3. the accounting offices have complied with the budget
  4. the accounting office has been obliged to report what measures it has taken as a result of the caution issued to it.

The figure shows which accounting offices have been cautioned regarding the above issues (“Show cautions”). To see the reasons that have led to the cautions, click on the name of the accounting office.

The number of cautions has slightly decreased in the past three years, as follows:

  • in 2017, cautions were issued to 21 accounting offices,
  • in 2018, cautions were issued to 16 accounting offices,
  • in 2019, cautions were issued to 15 accounting offices.

The number of accounting offices audited per year can vary: in recent years, the number has been slightly over 60. This means that in 2018–2019 every fourth and in 2017 as many as every third accounting office was cautioned.

Eight accounting offices have been cautioned each year in at the least the past three years.

In the financial audit for 2019, more than one caution were issued to

  • Finnish Immigration Service
  • Finnish Government Shared Services Centre for Finance and HR
  • Finnish National Agency for Education
  • Finnish Transport and Communications Agency
  • Finnish Transport Infrastructure Agency, and
  • Development and Administrative Centre for ELY Centres and TE Offices

For 2019, the National Audit Office obliged two accounting offices to report to it on the measures they had taken to remedy the state of affairs for which they had been cautioned.

The Finnish Transport Infrastructure Agency was to report how it would aim to remedy the deficiencies related to the processing of the incomplete assets to be transferred to Traffic Management Finland Group, the budgeting and monitoring of project-specific reallocation, and the information in and arrangement of accounting vouchers.

The Government Shared Services Centre for Finance and HR was to report how it would remedy the deficiencies in the internal control of the centralized financial and HR management duties.

Accessibility of the visualizations

On this page, you can examine the website’s dynamic visualizations in accessible text format. The description of each visualization starts by a description of what is shown in it. This is followed by a summary of the key contents of the visualization. The source of the information is disclosed at the end of the description. The descriptions help you to picture the key contents of the visualizations. Thus, the page does not describe each detail in the visualization but aims at presenting a summarized description.