Labour Market Reforms

At 71.9%, Finland’s employment rate has dipped from historic high levels of 2022. In its latest labour market forecast extending until 2026, the Ministry of Economic Affairs and Employment expects the employment rate to decline this year, but the number of employed people will not begin to fall because of strong immigration. A turn for the better can be expected towards the end of 2024. [Please keep reading: article continues after data.]

Government seeks to increase employment by 100,000 by 2027 

Increasing employment to improve medium-term growth potential and sustainability of public finances is a big policy focus for the Finnish government. Its long-term objective is to achieve an employment rate of 80% by 2031. For the government term of 2023–2027, the target is to bring 100,000 people into the workforce.

To achieve these targets, the government will implement a range of reforms to improve the incentives for work and increase the flexibility and competitiveness of the labour market. Social security will be reformed towards a single form of support, the universal credit. Forthcoming reforms to labour market and social security are explained in more detail in the Government Programme: Wellbeing through work.

To follow up on progress, please see:

Reforms carried out by the previous government: 

  • For over 55’s: Abolishing the unemployment tunnel (an early retirement pathway). The reform came fully into force in 2023
  • Offering jobseekers more intensive and individual support: see the Nordic labour market service model 
  • Employment services reform 2024, where the services are transferred to municipalities
  • Boosting labour migration and international talent attraction (please see: Talent Boost) 

Sources:
Official Statistics of Finland (OSF): Labour force survey [e-publication]. ISSN=1798-7857.
Helsinki: Statistics Finland [referred: 10.11.2021]. Access method: http://www.stat.fi/til/tyti/index_en.html

Official Statistics of Finland (OSF): Job vacancy survey [e-publication]. ISSN=1798-2278.
Helsinki: Statistics Finland [referred: 10.11.2021].
Access method: http://www.stat.fi/til/atp/index_en.html