Weak demand is cited as the reason for such slow development.
According to forecasts from the Ministry of Finance, the employment program will face serious difficulties by the end of the current government's term.
According to the Ministry of Finance, by 2030, there will be only 18,000 more employed individuals than there are now.
Meanwhile, the government of Petteri Orpo (CP) stubbornly clings to the promise of creating 100,000 new jobs by the end of its term. However, this plan has faced criticism even within the Coalition Party amid negative indicators of the Finnish economy and employment.
The Finance Committee has requested an assessment from the Ministry of Finance regarding the impact of numerous measures that the Orpo government has undertaken in the area of employment and adaptation for the years 2027-2030. It was expected that the decisions made by the government would lead to the creation of 105,000 jobs.
However, a document obtained by Yle indicates that progress towards this goal is very slow.
The Workforce Lacks Potential
The Ministry of Finance prepared an assessment based on the spring economic forecasts for the client—the parliamentary finance committee. According to this assessment, as a result of government measures to improve employment, the number of employed individuals in 2030 could be approximately 18,000 more than it is now.
The number of employed individuals in 2029 and 2030 could increase annually by an average of about 0.8–0.9%.
The Ministry of Finance's assessment is gloomier than the forecast published in May by the Ministry of Labor and Economic Development, which predicted an increase of 18,000 employed individuals in 2027 and 25,000 in 2028.
As a reason for such slow development, the Ministry of Finance cites weak demand caused by low economic growth.
Nevertheless, the Ministry of Finance sees glimmers of hope. The number of employed individuals is expected to begin to increase slightly during 2027.
The problem is that government labor market reforms may not help everyone. When the economy is growing, employers primarily seek the most qualified and productive employees. The labor market reforms are not aimed at the category of people who actually have the opportunity to find employment, the Ministry of Finance document states.
Unemployment in Finland remains one of the highest in Europe, standing at 10.5% in the spring. According to the chief economist of the Central Chamber of Commerce, Jukka Appelqvist, the main reason for high unemployment is the prolonged period of weak economic conditions in Finland.
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