Employment services sector positive about growth prospects in Finland

Recovery from the recession and future labour shortages provide create good business opportunities for employment services companies in Finland.

Companies operating in the employment services sector in Finland are services are extremely optimistic about their business prospects, according to a major report published on the sector by Branch Utility, a specialist service under the Finnish Ministry of Employment and the Economy. Almost 80% of companies in the sector expect their orders to increase and 72.5% see their turnover to growing in the coming year. The economy’s recovery from recession has created excellent growth opportunities in the sector, which currently has a total turnover of EUR 1.5 billion.

According to the report, the main trends in the sector include increasing specialization and cooperation projects between the public sector and private employment services companies. Many companies in the sector have also started cooperation with trade unions to prepare the way for the introduction employment services in new sectors of the economy. The companies surveyed for the report say that their main challenges are marketing and sales (38.8%), the development and training of staff (16.4%) and networking and sub-contracting (16.4%).

The largest companies currently operating in the sector are VMP Group and Barona. About 11% of the companies in the sector in Finland operate in international markets, with 22% on the national level, 28% on the regional and 38% only on the local level. The majority of the roughly 400 companies working in the sector are still very small, according to the report. Most are concentrated in the Helsinki metropolitan region but employment services are expected to spread more widely across the country as the importance of the regional growth centres increases.

The report also notes an increasingly positive public perception of employment services as an important part of the economy, especially in terms of creating employment opportunities for young people. In the coming years Finland is facing a labour shortage in many sectors due to the country’s ageing population, and employment services companies are set to play an important role in filling the gaps in the labour market.

Source: Branch Utility report on the Employment Services Sector