Finland is facing structural unemployment where there is a gap between the skills job seekers have and the qualifications employers require. According to a recent report by the Finnish Business and Policy Forum (Eva) over half of the unemployed in Finland fall into this category meaning they are unlikely to secure employment even if the economy grows and new positions become available.
Published: 20/08/25 | 15:56
Eva warns that structural unemployment in Finland is continuing to worsen.
Statistics Finland reported that at the end of June 57 percent of all unemployed individuals were considered structurally unemployed.
The report also highlights the situation of young people. In June more than 22 percent of those aged 15–24 who were part of the labor force were unemployed, marking a seven-percentage point rise compared to the previous year.
The problem is particularly severe for young people without both work experience and formal qualifications. In such cases the chance of finding a job within a year drops to just seven percent.
Data from 2022 emphasize this challenge further claiming that approximately 27,000 unemployed people under 30 had no prior work experience according to Statistics Finland’s employment statistics.
Eva has recommended measures to increase youth employment as a way to tackle structural unemployment including intensive three-month training programs for young people lacking formal qualifications.
Additionally, a government report indicates that young people with foreign backgrounds born in Finland face lower employment rates compared to their peers with Finnish backgrounds.
