Finland labor market shows structural shift amid economic growth

Finland is experiencing a structural shift in its labor market. While the national GDP grew by 2.5 percent in the second quarter of 2026, this economic recovery has not yet translated into widespread employment growth. Instead, there is a notable divergence between salaried workers and entrepreneurs: the number of employees decreased by approximately 26,000, while the number of entrepreneurs rose by 25,000 compared to the previous year.

Unemployment figures show varied regional trends. In Southwest Finland, the unemployment rate reached 12.6 percent, influenced by layoffs in the automotive sector. In Central Finland and Jyväskylä, unemployment has risen significantly, with the regional rate at 16.1 percent. Nationally, the number of unemployed individuals increased by 20,000 over the past year, reaching 289,000 in July.

Economists note that while business production and outlooks are strengthening, the labor market responds slowly to economic upturns. There are signs of potential recovery in sectors like construction, but the overall trend shows a transition toward work performed without traditional employment contracts. Additionally, real wages have seen a 1.6 percent increase as earnings outpaced consumer price growth.