Finland's economic climate is currently facing significant challenges as new data reveals rising unemployment rates alongside increased fees for passport and identity services.
According to the Ministry of Economic Affairs and Employment, the total number of unemployed job seekers has risen by 28,100 over the past year, bringing the total to 292,400 as of November 2024. Heikki Räisänen, the Ministry's research director, noted, "Our labour markets are currently pretty weak," highlighting the growing concerns over joblessness.
The employment sector continues to become more precarious, with the number of job vacancies shrinking dramatically—down by 21,600 from the previous year to just 22,800 new vacancies reported. This decline translates to almost half the total job openings available (44,400) compared to last year. Despite the ominous statistics, Räisänen pointed to one silver lining: the number of temporary layoffs has significantly decreased, indicating some resilience within certain employment sectors.
November statistics show the unemployment rate has climbed 1.4 percentage points compared to the previous year, now reaching 9.0%. The increase particularly affects the ranks of long-term unemployed, growing from 89,200 to 102,600—closer to the peak numbers recorded during the pandemic. It demonstrates how prolonged joblessness can impede the overall employment rate. Over one-third of all unemployed individuals have now been out of work for at least one year.
The youth employment situation presents its own set of dilemmas. Unemployment among individuals under 25 has risen, with 32,100 young job seekers reported—a year-on-year increase of 4,800. Although the situation is worrying, Räisänen noted it does not raise major concerns. "The unemployment periods tend to be relatively short as young people are willing to also pursue education or short-term employment opportunities," he stated. The regional disparity is evident, as Northern Ostrobothnia reports about 7% unemployment compared with North Karelia’s staggering 13.7%. Such differences can be attributed to varying population structures and local industries.
With the fragile labour market, many hope for economic recovery. While the first quarter of 2025 may see unemployment rates temporarily spike as more individuals actively enter the workforce, Räisänen remains optimistic. "The preconditions and rudiments for employment growth do exist as long as demand for jobs recovers," he asserted.
Simultaneously, the Finnish government will soon raise fees associated with obtaining passports, identity cards, and residence permits, set to take effect on January 1, 2025, as confirmed by the Interior Ministry. This decision reflects the pressing need for the government to manage its resources amid economic challenges.
Applying electronically for passports will now cost €57—a steady climb from €53, and those applying personally will find their fees increased by €9 to €57. The price of identity cards will see similar hikes, with electronic applications rising to €63, up from €52, and in-person requests jumping to €67. The Ministry indicated these increased fees will be effective until June 30, 2025, for some services, with others extending to December 31, 2025.
Notably, the Finnish Immigration Services have recorded unprecedented citizenship application numbers. Recent figures show 2,124 citizenship requests filed just within the third quarter of 2024 alone, reflecting increasing interest from individuals wishing to obtain Finnish nationality. The majority of these applications have emerged from Russia, Iraq, Syria, and Afghanistan.
The record high applications suggest varying socio-economic reasons driving individuals toward Finnish citizenship, potentially tied to international conditions, including the Russia-Ukraine conflict and migration pressures across Europe.
The juxtaposition of rising unemployment and increasing citizenship applications frames Finland's complex economic situation, where structural vulnerabilities coexist with the hopeful potential for recovery. Through tightened fees and potential growth strategies, authorities appear poised to manage the challenges of 2025, even as job seekers and new citizens navigate the uncertainties of changing economic landscapes.
