Finland’s Jobless Crisis: Unemployment Hits 16-Year High as Market Struggles

Finland recorded its highest unemployment rate in over a decade last month, signaling a significant cooling of the national labor market. Official data from Statistics Finland shows the rate reached 10.7 percent in December 2025, the highest level seen since the economic crash of 2009.

The number of people without work has reached 277,000. This is an increase of 51,000 compared to the same time last year.

Young workers are facing the most difficult conditions. Nearly one in four people aged 15 to 24 is currently looking for a job.

The figures show that 154,000 men and 123,000 women are now unemployed. Long-term unemployment is also becoming a persistent issue for many residents.

There are now 138,000 people who have been out of work for at least a year. Within this group, over 68,000 have been searching for more than two years.

Despite these figures, the total number of people with jobs has remained relatively stable. Around 2.5 million people are still employed in the country.

Statistics Finland noted that more people are entering the labor market than before. This increase in the total number of jobseekers is one reason why the unemployment rate appears so high.

Economic analysts point to a sharp downturn in the construction sector as a primary cause. High interest rates and a slump in housing starts have slowed new building projects across the country.

Additionally, the Finnish economy has struggled with stagnant growth throughout 2025. Low demand for exports from major trading partners has limited the creation of new positions in the industrial sector.