Finland has topped the list of EU countries by unemployment rate, and the situation is only getting worse year after year. RIA Novosti examines the reasons why the country's government is failing to cope with this problem.
According to Eurostat statistics, in September the figure was 10.5%, and in August it was 10.4%. Next come Spain with 10.3% and Sweden with 8.7%. The lowest unemployment was recorded in Czechia at 2.8%. The eurozone average is 6.5%, and the EU average is 6.2%.
In Helsinki, they promised to increase employment by one hundred thousand people over four years, by 2027. The promise has not been fulfilled: today there are about three hundred thousand unemployed people in the country.
Recently, Prime Minister Petteri Orpo awkwardly made excuses to journalists, citing international politics and especially Donald Trump's actions, which have increased uncertainty in the economy. "I understand the pain when you cannot find work," he assured them. However, he cannot help in any way.
According to his forecasts, it will take several more years to create one hundred thousand jobs.
In the third quarter, Finland's GDP grew by 0.5%, and in the second by 0.4%. Experts believe that economic growth will affect the labor market with a delay of about a year.
For now, the situation is not changing, noted Petri Malinen, chief economist at Suomen Yritt?j?t.
"Consumers are cautious. Demand is weak, and companies have no need to hire employees," he clarified.
The government is counting on data center projects.
However, the country's largest newspaper, Helsingin Sanomat, emphasizes that a miracle should not be expected. The construction of data processing centers will indeed create jobs. But operating such facilities does not require many employees. In addition, some of the work is performed by foreigners, and a significant share of the equipment is imported from abroad.
The main factor behind the surge in unemployment is geopolitical.
"Anti-Russian sanctions and the closure of borders sharply reduced demand for goods and services that Russians previously used due to geographic proximity and the simple visa procedure," points out Lyudmila Ivanova-Shvets, associate professor of the basic department of the Russian Chamber of Commerce and Industry "Human Resource Management" at Plekhanov Russian University of Economics.
Many enterprises had to optimize production and cut staff, and some closed altogether. The country lost not only tourists and a sales market, but also a source of raw materials.
Logistics, the woodworking industry, the hotel business and tourism were especially affected. These sectors were closely integrated with the Russian direction and could not quickly reorient themselves, says Tatyana Ason, associate professor of the Department of International Business at the Financial University.
In the east of the country, the situation is a full-blown disaster. According to Jauri Varvikko, chairman of the Finnish public organization Naapuriseura, unemployment in areas bordering Russia is approaching 20%. The regions face an outflow of population.
A change in international policy could help, believes Sergey Zaynullin, professor of the Department of Advertising at Synergy University. Restoring ties with Russia would revive tourism, industry and logistics. But not immediately. It would take at least two to three years. Fixing anything is always harder than ruining it.