Structural unemployment in Finland has reached a critical level, raising concerns about the country’s future workforce and long-term economic health. A new report from the Finnish Business and Policy Forum EVA reveals that more than half of unemployed people in Finland are now classed as structurally unemployed, meaning their chances of finding work remain low even during periods of economic growth. By the end of June, Statistics Finland data showed that 57 per cent of jobseekers had fallen into this category.
The report explains that structural unemployment occurs when people’s skills and backgrounds no longer meet the needs of employers. This mismatch leaves thousands unable to rejoin the workforce, even when new jobs are available. While the issue affects all age groups, young people have been hit the hardest. In June 2025, unemployment among those aged 15 to 24 reached 22 per cent, which is seven percentage points higher than in 2024. EVA warns that when young people lack both qualifications and job experience, they are at a much higher risk of long-term or even permanent exclusion from the labour market.
EVA has outlined three measures to combat the growing problem. The first is a short training pathway, no longer than three months, designed to quickly equip young people with skills for industries facing labour shortages. The second is a recruitment bonus for companies willing to take a chance on young employees without previous work experience. The third is a system of neighbourhood alliances where municipalities, wellbeing services, employers, and civil groups work together with the state to support those most at risk.
Figures underline the urgency of the problem. In June 2025, there were about 75,000 under-30s registered as unemployed in Finland. In addition, data from 2022 showed that 27,000 young people had never entered employment at all. The report warns that when a lack of qualifications and job history is combined with long unemployment, the chance of finding a job within one year collapses to just seven per cent.
Jussi Pyykkönen, the consultant who authored the EVA report, said that without quick action, Finland could face permanent losses to its labour force and tax base. He estimates that unemployment already costs Finland billions of euros annually. Benefits for young people alone amount to roughly 580 million euros each year, and the figure is still rising.
According to Pyykkönen, the only way to stop structural unemployment in Finland from becoming a permanent cycle is to give young people fast access to both training and their first job opportunities. Without this, he warns, too many career paths in the country may never begin, leaving thousands unable to contribute to the workforce or to society at large.
