A customer at Helsinki’s Employment Service Point in Pasila’s TE Office. LEHTIKUVA
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Unemployment among Finland’s highly educated workforce has risen to unprecedented levels, with over 52,000 university graduates out of work by the end of 2024, according to Akava, the labour confederation representing professionals and managerial staff.
The trend, which accelerated in the latter half of the year, has affected nearly all fields, including traditionally stable sectors such as healthcare and information technology.
“The unemployment situation for highly educated individuals is grim,” said Pasi Sorjonen, Chief Economist at Akava. He noted that the number of unemployed university graduates has never been this high in the 21st century.
According to the Ministry of Economic Affairs and Employment, Finland had 321,700 unemployed jobseekers in December, marking a sharp rise in overall joblessness.
The technology sector, particularly information and communication technology (ICT), has seen a steep increase in job losses, with companies implementing large-scale redundancies. The social and healthcare sector has also been hit hard, with nurses, social workers, and physiotherapists struggling to find work despite previous labour shortages.
The rise in unemployment is evident across all fields, according to Tomi Husa, an expert at Akava Works. “There was a time when even if overall unemployment was rising, some fields would remain stable or even improve. That is no longer the case,” Husa said.
The biggest increases in unemployment were recorded in business and commerce, engineering, and ICT. However, the most dramatic shift occurred in healthcare, where unemployment rose by 32% year-on-year.
Traditionally, healthcare professionals have faced strong job demand, but recent cost-cutting measures in Finland’s new wellbeing services counties have led to staff reductions.
Husa noted that the wave of layoffs in healthcare coincided with restructuring in the public sector, which also affected social sciences and education.
A growing concern is the increasing number of highly educated individuals experiencing long-term unemployment. More than 17,000 university graduates have been without work for over a year, a number expected to surpass previous records from 2015–2016.
“The number of long-term unemployed among university graduates is approaching all-time highs,” Sorjonen said. “It could easily surpass the 2015–2016 peak within the next few months.”
Recent graduates are also struggling, with job prospects now comparable to those seen during the COVID-19 pandemic.
“The last time job openings were this scarce was about 14 years ago,” Sorjonen noted. “For those with master’s degrees, it is now harder to find work than it was during the coronavirus crisis.”
Akava has called for reforms to allow unemployed individuals to pursue further education while receiving unemployment benefits.
“When jobseekers can expand their skills, their chances of employment increase, and their careers remain sustainable,” said Maria Löfgren, Chair of Akava. “This benefits both individuals and society as a whole.”
The organisation argues that Finland needs a more flexible approach to education during periods of unemployment, allowing jobseekers to update their skills without losing benefits.
“We need a broader shift in thinking to make skill development during unemployment both acceptable and encouraged,” Löfgren added.
Despite seasonal fluctuations in unemployment, there are no indications that the situation will improve soon.
“There are no signs of unemployment decreasing—either among university graduates or other groups,” Sorjonen said. “Unemployment is likely to rise further through the winter and spring.”
The job market challenges reflect Finland’s broader economic difficulties, with weak economic growth and uncertainty affecting hiring decisions across industries.
HT
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Source: www.helsinkitimes.fi
