A client heading to the Helsinki Employment Services Centre at the Pasila TE Office. Photo: Antti Aimo-Koivisto / Lehtikuva
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More than half of unemployed people in Finland are now classified as structurally unemployed and will not find work even during periods of economic growth, according to a new report from the Finnish Business and Policy Forum EVA.
At the end of June, 57 percent of unemployed individuals fell into this category, based on Statistics Finland data. These are people whose employment prospects remain low despite job creation and economic recovery.
Youth unemployment has worsened significantly over the past year. In June 2025, 22 percent of 15–24-year-olds in the labour force were unemployed, a seven percentage point increase compared to the previous year.
According to EVA, if young people lack both a formal qualification and work experience, their likelihood of becoming long-term unemployed or permanently excluded from the labour market rises sharply.
EVA proposes three measures to address youth unemployment:
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A fast-track training pathway for young people without a qualification, lasting no more than three months and tailored to labour shortage sectors
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A recruitment bonus for companies that hire young people without job experience
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Neighbourhood alliances involving the state, municipalities, wellbeing services, employers, and civil society to support young people at risk of exclusion
As of June 2025, 75,000 under-30s were registered as unemployed jobseekers. A further 27,000 young people had no employment history at all, according to 2022 data from Statistics Finland.
EVA’s findings show that when a lack of qualifications and job history is combined with prolonged unemployment, the probability of employment within one year drops to just seven percent.
Jussi Pyykkönen, a consultant and author of the EVA report, said immediate intervention is necessary to avoid permanent losses in labour force and tax revenue.
“The downward spiral of structural unemployment can only be stopped by giving young people quick access to training and their first job,” Pyykkönen said.
He estimates the societal cost of unemployment in Finland runs into billions each year. Unemployment benefits for young people alone amount to approximately €580 million annually, and the figure is rising.
“There are too many career paths in Finland that never begin,” Pyykkönen added.
HT
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Source: www.helsinkitimes.fi
