Finland’s Unprecedented Highly Educated Unemployment: A Sign of Broader Economic Challenges and Weakened Consumer Power

In recent months, Finland has seen an unprecedented increase in unemployment among highly educated professionals, particularly architects. According to a report by Akava, more architects have been laid off than ever before in history. This trend may signal a broader increase in unemployment across the country.

The highly educated unemployment rate is approaching the highest figures of the corona era and is expected to reach that point by April, according to Akava’s new unemployment and layoff review. The Ministry of Labor and the Economy (TEM) reported that by the end of February, there were approximately 31,600 more unemployed and full-time furloughed individuals than a year earlier.

Unemployment among those with higher education is increasing steadily but not as rapidly as among non-higher-educated individuals. A slight decrease in layoffs among people without higher education towards the end of 2023 was also noted in Akava’s review, with about 6,250 of them having higher education.

Chief Economist Pasi Sorjonen believes that this increase in unemployment among those with higher education could be a sign of a broader increase in unemployment across Finland. He emphasizes that consumer confidence needs to be strengthened to help combat unemployment and its economic impacts.

Jobs for highly educated individuals often involve creative planning and construction work, which may be more affected by economic downturns. On the other hand, performing jobs typically held by non-higher-educated individuals may be more stable but are still affected by economic conditions.

Sorjonen also expresses concern over the weakening of consumers’ real earnings and its impact on purchasing power. Real wages have fallen to levels not seen in over a decade, which could dampen demand for big-ticket items like cars and apartments. To address these challenges, strategies to boost consumer confidence and support employment are needed.

In conclusion, Finland is experiencing an unprecedented increase in unemployment among highly educated professionals such as architects. This trend may signal a broader increase in unemployment across the country and weakening consumer real earnings impact on purchasing power are also major concerns for policymakers.