Finland’s labour market weakened significantly in February, with employment falling by 64,000 compared to the same time last year and unemployment reaching its highest level since 2016.
According to data from Statistics Finland, the employment rate for those aged 15–64 dropped to 71.4 percent. The overall unemployment rate for those aged 15–74 rose to 9.1 percent, marking a two-tenths increase from January.
Henna Busk, senior economist at Pellervo Economic Research (PTT), described the figures as "grim", highlighting the steep decline in employment and the continued upward trend in long-term unemployment.
Busk pointed to falling employment in the public sector as a key factor. “The private sector has remained relatively stable, but there’s still no sign of growth,” she said.
The drop in employment was especially sharp among women. Compared to February 2024, the number of employed men declined by 7,000, while the number of employed women fell by 58,000. The disproportionate drop is linked to budget cuts in government and regional services, which traditionally employ more women.
Despite the overall negative trend, the size of the working-age population continued to grow slightly, offering a rare point of stability.
Jukka Appelqvist, chief economist at the Finland Chamber of Commerce, said that earlier signs of improvement at the start of the year now appear to have been temporary. “Those numbers were too good to be true,” he said. “Recovery in the labour market hasn’t begun yet.”
Appelqvist noted that both key employment trend rates are now falling. The 20–64 age group had an employment rate of 76.0 percent, also down from previous figures. Adjustments were also made to earlier months’ data, revising previously optimistic figures downward.
There were 263,000 unemployed people in February, an increase of 43,000 year-on-year. The last time unemployment was this high in February was in 2016.
While Appelqvist believes the peak of the current unemployment cycle may be near, he warned that recovery will be slow. “This level of unemployment keeps household spending cautious, which in turn delays recovery in domestic demand,” he said.
According to the Ministry of Economic Affairs and Employment, employers listed just under 50,000 job openings in February. That figure remains well below average.
Even so, Appelqvist suggested that some cautious optimism is possible. “The job market is still weak, but the worst may have passed in the latter half of last year. There are faint signs of a slow recovery,” he said.
HT
