Finland’s unemployment rate has risen to 11 percent, giving the country the highest jobless rate in the European Union, according to the latest figures released by Eurostat on Friday.
The September 2026 figures represent a 1.3 percentage point increase compared with the same period last year, highlighting the continued difficulties facing Finland’s labour market despite early signs of economic recovery.
Finland has occupied the top position in the EU unemployment rankings for much of this year. The country briefly moved into second place in August, when its unemployment rate fell to 9.9 percent, compared with Spain’s 10.2 percent. However, the latest figures show that Finland has returned to the highest position, with unemployment increasing again.
The figures also suggest that the gradual improvement in Finland’s economic outlook has yet to translate into stronger employment conditions. Although there have been modest indications of recovery after a prolonged period of weak economic growth, businesses remain cautious about expanding their workforce.
Petri Malinen, Chief Economist at the Finnish Federation of Entrepreneurs, previously told Yle that uncertainty surrounding geopolitical developments continues to affect business confidence. According to Malinen, many Finnish companies are delaying recruitment decisions because they remain unsure about the strength and timing of an economic recovery.
“As long as economic growth doesn’t seem to materialise concretely, consumers will remain cautious and consumption will recover slowly. In this situation, growth in demand for companies is modest, and they have no need to recruit,” Malinen said.
His comments point to a wider challenge in Finland’s economic recovery. Even when businesses begin to see improvements in the economic outlook, they may remain reluctant to hire until demand for their products and services becomes more reliable. This can slow the pace at which an economic recovery translates into new jobs.
The latest unemployment figures also place Finland well above the European Union average. Across the 27 EU member states, the unemployment rate stood at 6.2 percent in September, remaining close to six percent throughout the year.
Spain recorded the second-highest unemployment rate at 10.3 percent, while Sweden ranked third at 8.6 percent. The figures highlight the different labour market conditions across Europe, with Finland and Sweden recording considerably higher unemployment rates than the EU average.
At the other end of the rankings, the Czech Republic registered the lowest unemployment rate in the European Union at 2.8 percent, followed by Poland at 3.4 percent.
The figures measure unemployment as a share of the total labour force, rather than the entire population. They underline the scale of Finland’s employment challenges as the country continues to face weak recruitment demand and uncertainty among businesses.
