Long-term unemployment in Finland has climbed to its highest point in more than 20 years, according to new data published by Statistics Finland.
In July, 128,900 people had been without work for more than a year. This was an increase of 30,200 compared with the same month last year. Of those, 62,100 people had been unemployed for more than two years, which is nearly 10,000 higher than in July 2024.
The overall number of unemployed people in July reached 269,000. That is 40,000 more than one year earlier, showing how sharply the labour market has weakened.
Chief Economist Jukka Appelqvist from the Finland Chamber of Commerce said the situation for jobseekers is “exceptionally tight and difficult.” He explained that the number of open vacancies remains low and that there are no signs of improving demand for workers.
Appelqvist added: “The continued rise in long-term unemployment, combined with the lack of new job openings, shows no sign of reversing. Right now, there are very few vacancies compared to the number of people looking for work.”
According to Statistics Finland, the unemployment rate trend for people aged 15 to 74 stood at 9.6 percent in July.
Employment figures also dropped. There were 43,000 fewer people employed compared with July 2024. Among men, employment declined by 35,000, while women saw a fall of 7,000. The employment rate trend for people aged 20 to 64 was recorded at 75.8 percent.
New job postings have become scarce. Only 27,200 vacancies were reported in July, compared with more than 50,000 just two years ago.
Although Finland has seen some positive signs in export markets and domestic consumption, Appelqvist warned that the wider economy is still stagnant.
“There have been cautiously positive signals in industrial exports and household demand,” he said. “But overall, economic growth has not resumed. There is no sign of a rebound in employment, and expecting improvement before the end of the year would be overly optimistic.”
