The number of employees in companies tracked by Ilmarinen fell by 0.6 per cent in January compared with a year earlier. The drop marks two and a half years of decline in the pension insurer’s business cycle index. In December, the annual fall stood at 0.5 per cent.

The index covers more than 50,000 companies and around 600,000 employees. It tracks ten sectors that account for most of Finland’s private sector.

Despite the overall decline, several sectors recorded growth in January.

Transport increased by 2.4 per cent year on year. Administrative and support services rose by 0.7 per cent. Accommodation and food services grew by 0.6 per cent and industry expanded by 0.4 per cent.

Researcher Jouni Vatanen said the downturn has now reached a milestone. “Unfortunately, the decline in employee numbers in our index has now reached two and a half years,” he said.

“I believe that as we move towards spring we will see positive growth figures,” he added.

Vatanen pointed to western Finland as a source of strength. “Positive signs were visible in January in western Finland, which already performed best in the country last year,” he said.

He noted that industrial orders increased at the end of 2025 and that the region hosts several major industrial firms.

The steepest annual declines in January occurred in social and health services, where staff numbers fell by 2.5 per cent. Construction followed with a 2.3 per cent drop and information and communication saw a fall of 2.2 per cent.

“Construction has faced weak conditions for a long time, influenced by the broader state of the economy,” Vatanen said. He said a recovery in construction would support employment and consumer confidence.

He added that purchasing power returned at the end of 2025 to the level seen before the inflation surge of 2022 and 2023.

Western Finland recorded growth of 0.5 per cent. Northern Finland remained at the previous year’s level. Southern Finland saw a decline of 1.0 per cent, and eastern Finland posted the largest regional fall at 1.6 per cent.

Northern Finland also recorded a notable growth in accommodation and food services of 5.9 per cent.

Ilmarinen has published the index since 2013.

HT