After 1,000 days without work, 33-year-old Juho-Pekka Palomaa marked the milestone with a bring-your-own-food protest on the steps of Finland’s parliament, reflecting the pressures facing many as the country battles economic stagnation and rising joblessness, even while topping the World Happiness Report for the eighth consecutive year.
Finland is grappling with weakening growth, strained public finances and unemployment that climbed to 10.3% in October, the highest in at least 15 years, according to Statistics Finland, with youth unemployment among 15 to 24-year-olds at 22.4%. The Bank of Finland has forecast economic growth of 0.3% this year, down from 0.4% in 2024.
Palomaa, a former video producer, said he remained grateful for Finland’s social safety net but felt there was little he could do to change his situation after countless job applications and 11 failed interviews. He criticised cuts to unemployment benefits while pensions remained untouched.
Finland’s export-dependent economy has struggled since the collapse of Nokia’s handset business in 2014, worsened by sanctions on Russia over its war in Ukraine and ongoing global trade uncertainty. The European Commission is expected to decide whether to place Finland under an “Excessive Deficit Procedure” after forecasting its budget deficit will exceed the EU’s 3% limit for the next three years.
Poor public finances have already prompted reductions in unemployment and housing benefits and cutbacks to some medical services. Hanna Taimio, 54, another unemployed Finn who joined Palomaa’s protest, said the scale of cutbacks left her fearful for younger people entering the workforce.
The right-wing coalition government, in office since 2023, has defended its approach as necessary to stabilise finances and control debt. Employment Minister Matias Marttinen described the current jobless rate as “an awful situation” but said making dismissals easier was aimed at lowering hiring risks and ultimately boosting employment.
Critics say austerity measures have deepened consumer pessimism and economic strain, with Lauri Holappa of the Finnish Centre for New Economic Analysis pointing to simulations suggesting fiscal consolidation could even increase the public debt rate.
Despite these challenges, Finland’s resilience and strong social trust continue to underpin its happiness ranking. John Helliwell, founding editor of the World Happiness Report, said life evaluations are driven more by factors such as resilience and the ability to deal collaboratively in difficult times than by short-term economic conditions.
In contrast, the World Happiness Report 2025 places India 118th out of 147 countries, up from 126th last year, with its life evaluation score improving from 4.054 to 4.389 out of 10 based on indicators including social support, healthy life expectancy, freedom, generosity and GDP per capita.
For Palomaa, small moments of solidarity, such as time spent at a volunteer-run community sauna in Helsinki, offer pause from the financial strain of prolonged unemployment, even as he continues seeking work.
(With Inputs from Reuters)
