Published: 25/11/25 | 16:16
Finland’s unemployment rate has reached its highest level since records began in 2009 by reaching 10.3 percent in October. According to Statistics Finland this marks an increase compared to both September when the rate stood at 9.9 percent and October of last year. The trend figure which smooths out seasonal and short term fluctuations such as summer employment presents the most negative reading in the 15-year series.
In total approximately 276,000 people were unemployed in October which is almost 48,000 more than a year ago.. At the same time the employment trend showed a slight decline as among people aged 20-64 the employment rate was 76.0 percent, which is marginally lower than in October last year.
Despite the rise in unemployment the total number of employed people increased. There were about 2,611,000 employed individuals in October that is roughly 25,000 more than during the same period last year. This highlights the difference between absolute employment figures and unemployment rates which are influenced by changes in the size of the labor force.
Päivi Puonti, who is a forecast manager at the Finnish Institute for Economic Research (Etla) said she was unexpectedly encouraged by the figures overall and while acknowledging that the unemployment rate is historically high she emphasized that employment levels still remain relatively strong. According to Puonti the employment rate has stabilized at around 76 percent which is comparable to the level that is seen in 2019.
However, Puonti expressed concern over the persistently high unemployment figures expressing that in Finland unemployment typically rises when economic growth remains weak for an extended period as is currently the case. She highlighted that the increase in unemployment is not solely the result of people losing jobs but instead a significant share is linked to increased immigration. Estimates published by VATT at the end of October suggest that nearly 44 percent of the rise in unemployment can be attributed to immigration which expands the labor force.
Elina Pylkkänen, who is the Undersecretary of State at the Ministry of Employment and the Economy also described the figures as concerning but found some encouraging developments. She also then told Yle that consumer confidence remains intact and that businesses are showing optimism due to rising orders and ongoing investments.
Pylkkänen explained that the unemployment figures are partly influenced by the continuous entry of young people into the labor market and many of whom face challenges in securing jobs. She also noted that during economic turning points it is common for both employment and unemployment to rise simultaneously as an expanding workforce can temporarily push unemployment higher.
Although she described the high level of long term unemployment as regrettable, Pylkkänen highlighted a positive trend that short term unemployment has already begun to decrease that signals potential improvement in the labor market.
