Finland's unemployment rate rises to highest level this century

- Finland's unemployment rate hit 9.6% in January 2025, the highest since 2000 (excluding the 1990s depression). The number of unemployed jobseekers passed 300,000 for the first time in a decade. - The government, led by PM Petteri Orpo (centre-right National Coalition), has pursued austerity policies — cutting spending and weakening employment protections — arguing they will boost long-term competitiveness. Critics say these cuts are worsening unemployment. - Key reforms include a new "activity model" that tightens conditions for unemployment benefits (requiring more active job-seeking) and local bargaining agreements that make it easier to fire workers. These took effect through 2024. - A major strike wave hit Finland in spring 2024 when trade unions protested the government's labour market reforms and proposed limits on political strikes. The conflict has cooled but tensions remain high. - Finland's economy has also been hit by weak demand in Germany and Sweden (key export markets) and the collapse of trade with Russia after the Ukraine war.