Hiring Trends in Finland for 2026: Delayed Recovery, Structural Challenges

Disclaimer: This article provides a qualitative overview of hiring trends based on publicly available labour market statistics, economic forecasts, and institutional analysis. It is intended to support understanding and workforce planning rather than formal forecasting or statistical prediction. This assessment reflects conditions and projections as of late 2025; labour market outcomes may vary by region and evolve with economic or policy changes.

Finland's 2026 labour market is navigating a delayed recovery from cyclical weakness while facing intensifying structural challenges. Employment growth remains modest, but persistent skill shortages in critical sectors create a segmented market with stark contrasts between surplus and shortage occupations.

A labour market in transition: Recovery taking hold gradually

Finland's labour market is emerging from a period of cyclical weakness, with recovery expected to accelerate from early 2026. However, this rebound follows significant contraction in job vacancies - which fell nearly 40% year-on-year in Q2 2025 - and reflects a fundamentally changed hiring environment compared to the tight market of 2022-2023.

The employment rate among 15-64 year-olds stands at around 71-72% as of late 2025, down from historic highs above 75% in 2022. The Ministry of Economic Affairs and Employment projects employment will grow by approximately 18,000 in 2026 and 29,000 in 2027, with the employment rate gradually recovering towards around 72% by 2027. Unemployment, meanwhile, is forecast to decline from approximately 9.5% to around 8.8-9.0% over this period.

Beneath these aggregate trends lies a market sharply divided by sector and skill level. While generalist vacancies have contracted substantially, highly specialised fields (particularly healthcare, advanced technology, and green innovation) continue experiencing acute shortages. Long-term unemployment is rising, with the Ministry of Economic Affairs and Employment forecasting an average of around 140,000 individuals classified as long-term unemployed over 2026, up from approximately 136,000 in 2025, with further increases towards 142,000 projected for 2027.

This analysis is most relevant to employers, HR professionals, job seekers, training providers, policymakers, and institutions supporting workforce development in Finland's evolving labour market.

1. Structural skill shortages intensify in critical occupations

Despite overall weakness in hiring volumes, Finland faces severe and worsening shortages in specific occupations. Health professionals, building and related trades workers (excluding electricians), and personal service workers represent the occupational groups with the highest shortage intensity in 2024-2026.

These shortages are structural rather than cyclical:

Healthcare: Healthcare sector analyses and employer associations project shortages of thousands of registered nurses extending toward 2030, with some estimates suggesting gaps of 10,000-15,000 nurses. Demand intensifies annually. Doctors, mental health professionals, and elderly care workers face similar constraints.

Skilled trades: Construction workers, plumbers, electricians, welders, and HVAC technicians face persistent recruitment challenges driven by infrastructure projects and the green transition.

Technology: Software developers, cybersecurity specialists, data analysts, and AI/ML engineers remain in demand, though hiring has become more selective than in 2022-2023. While some technology sub-sectors have slowed hiring in response to global tech market turbulence, industrial digitalization, cybersecurity, and B2B software continue expanding. Finland's push toward digital infrastructure and innovation sustains demand for specialised technical skills.

Education: Teacher shortages persist, particularly in STEM subjects, vocational training, and early childhood education.

In these occupations, employers remain fundamentally constrained by labour supply rather than demand, even as the broader market softens.

So what

For candidates: Skills aligned with shortage occupations provide strong employment security and bargaining power.

For employers: Recruitment in shortage roles requires proactive sourcing, competitive packages, and willingness to train or upskill adjacent talent.

2. Vacancy pressure has eased substantially, shifting power toward employers

Job vacancies declined dramatically through 2025, falling from approximately 47,000 in Q2 2024 to about 28,900 in Q2 2025 - a drop of nearly 40% according to Statistics Finland. Private sector vacancies contracted even more steeply, declining roughly 46%.

This represents a fundamental shift from the historically tight labour market of 2022-2023. Hard-to-fill positions declined from 43% to 37% of all vacancies, indicating broader talent availability for many roles.

For most generalist positions - administrative staff, customer service, sales, non-specialised management - Finland now operates as an employer-driven market. Applicant pools have expanded significantly, hiring timelines can be longer, and employers can be more selective.

However, this easing is not uniform. In shortage occupations and highly specialised roles, competition for talent remains intense and hiring challenges persist unchanged.

So what

For candidates: Competition has increased substantially for generalist roles; differentiation through skills, experience, and cultural fit is critical.

For employers: While hiring has become easier in many roles, shortage positions still require aggressive recruitment and retention strategies.

3. Long-term unemployment poses structural risk

The rise in long-term unemployment represents one of Finland's most significant labour market challenges in 2026. The Ministry of Economic Affairs and Employment forecasts an average of around 140,000 long-term unemployed over the year, with further increases toward 142,000 projected for 2027. Finland risks entrenching a segment of the workforce disconnected from employment.

This concentration of unemployment among specific groups creates asymmetry: while thousands of vacancies remain unfilled in shortage occupations, a growing pool of job seekers struggle to find any employment. The mismatch reflects:

• Skills gaps: Many long-term unemployed lack qualifications for available shortage roles
• Geographic mismatch: Vacancies concentrate in growth hubs (Helsinki, Tampere, Oulu) while unemployment is higher in declining industrial regions
• Age factors: Workers over 50 report employer reluctance to hire them despite relevant experience
• Integration challenges: Language barriers affect immigrant job seekers, even those with strong professional credentials

Without effective intervention, this creates a dual labour market: one segment with abundant opportunity and another with persistent exclusion.

So what

For candidates: Proactive reskilling, geographic flexibility, and targeted skill development in shortage areas dramatically improve prospects.

For employers: Untapped talent pools exist among long-term unemployed who could fill shortage roles with training investments.

For policymakers: Reskilling programmemes targeting shortage occupations and support for regional mobility are critical.

4. Sector divergence defines the hiring landscape

Labour market conditions vary dramatically by sector, creating distinct realities for job seekers and employers:

Contracting sectors

Manufacturing and traditional industry: Facing structural adjustment and reduced international demand. Job creation is limited and some roles face displacement.

Retail and consumer services: Weaker consumer spending constrains hiring growth.

Growth sectors

Healthcare and social services: Sustained demand driven by demographic needs rather than economic cycles. Hiring continues despite broader market weakness.

Technology and digital services: While global tech layoffs created turbulence, Finland's domestic tech sector remains resilient, particularly in B2B software, cybersecurity, and industrial digitalization.

Green energy and cleantech: Finland's commitment to renewable energy creates sustained hiring in engineering, project management, and technical trades. Long-term hydrogen economy strategy work, supported by Kemianteollisuus (Finnish Chemical Industry Federation) and cluster analyses, projects the sector could create tens of thousands to potentially over 100,000 jobs and add substantial economic value (with some scenarios suggesting up to €69 billion) by the 2035-2045 timeframe. While these are long-term projections rather than near-term forecasts, the green transition is already generating measurable hiring demand in 2026.

Education and research: Public sector hiring remains stable, with particular need for vocational trainers and STEM educators.

So what

For candidates: Sector choice powerfully influences employment stability and growth prospects. Green energy and healthcare offer strongest long-term trajectories.

For employers: Growth sectors must compete aggressively for talent; contracting sectors should focus on retention and redeployment.

5. Digital capability is baseline; AI remains emerging

Digital literacy represents a baseline expectation across the Finnish labour market in 2026. Proficiency with office productivity tools, digital collaboration platforms, data handling, and basic automation is assumed for virtually all professional roles.

However, advanced AI capability is not yet widely required outside specialist positions. While Finland actively promotes AI integration through its National Strategy for Artificial Intelligence - with various analyses suggesting AI technologies could add tens of billions of euros to GDP over the coming decade - workplace adoption remains uneven. Large enterprises and tech firms lead integration, but most organisations use AI to augment rather than replace existing workflows.

The skills currently valued include:

• Data literacy: Ability to work with data, understand analytics, and make data-informed decisions
• Digital systems fluency: Comfort learning and adapting to new software and tools
• Automation awareness: Understanding where automation can improve processes
• Cybersecurity consciousness: Basic understanding of digital security practices

Deep AI/ML expertise remains a specialised skill commanding premium compensation but is not yet a general hiring requirement.

So what

For candidates: Invest in digital fundamentals and data literacy; deep AI skills provide differentiation in tech roles but aren't universal requirements.

For employers: Focus on building data literacy across teams; specialised AI roles require competitive compensation and clear career paths.

6. Applied skills and experience increasingly differentiate candidates

Finnish employers are placing growing emphasis on demonstrated capability, relevant experience, and job readiness, particularly in technical, operational, and shortage occupations. This shift reflects:

• Reduced training capacity: With tighter margins, employers prefer candidates who can contribute quickly
• Skills mismatch awareness: Recognition that formal credentials don't always align with practical job requirements
• Shortage occupation urgency: Need to assess candidates holistically when talent pools are limited

Formal qualifications remain essential in regulated professions (healthcare, teaching, legal) and across the public sector. However, for many private sector roles - especially in technology, skilled trades, and commercial positions - demonstrated skills, portfolio work, relevant projects, and transferable experience now carry substantial weight.

Forecasts suggest 50% of Finland's workforce will require reskilling or upskilling by 2025-2026, making continuous learning and adaptability valuable signals to employers.

So what

For candidates: Build demonstrable portfolios, pursue certifications in shortage skills, and emphasise practical achievements over credential lists alone.

For employers: Skills-based assessment broadens talent pools; focus on capability and cultural fit over perfect credential matches.

7. Wage dynamics reflect recovery phase and sectoral variation

Wage growth in Finland during 2026 reflects the labour market's transitional state. Overall nominal wage increases remain moderate as the economy gradually recovers, but significant premiums exist in shortage occupations.

Average monthly earnings vary substantially by sector and experience level, with Finland maintaining one of Europe's highest wage floors through comprehensive collective bargaining. Gender pay gaps persist but have narrowed marginally over recent years.

Key wage dynamics include:

Shortage occupation premiums: Healthcare specialists, senior engineers, data scientists, and cybersecurity professionals often command salaries significantly above sector averages, with experienced professionals in high-demand roles earning substantial premiums.

Collective bargaining influence: Finland's strong union presence means many wage adjustments occur through sector-wide negotiations rather than individual bargaining, providing stability but limiting individual upside in non-shortage roles.

Non-wage competition: With direct wage increases constrained by collective agreements and economic uncertainty, employers increasingly compete through flexibility (remote work options), professional development opportunities, job security, and work-life balance initiatives.

Regional variation: Helsinki metro area salaries typically run higher than other regions, though cost-of-living differences partially offset this premium.

So what

For candidates: Wage growth opportunities concentrate in shortage occupations and growth sectors; non-wage benefits increasingly matter for overall package quality.

For employers: In shortage roles, competitive compensation is essential; elsewhere, emphasise development, stability, and culture to attract and retain talent.

8. Retention and workforce development become strategic priorities

With recruitment challenging in key occupations and economic uncertainty persisting, Finnish organisations increasingly prioritise workforce retention, internal mobility, and systematic skills development over external hiring for expansion.

This strategic shift reflects:

Recruitment cost-benefit calculations: High cost and time investment to fill shortage roles makes retention economically imperative.

Skills development as competitive advantage: Organizations that successfully upskill existing employees can fill roles internally that would be difficult to recruit externally.

Cultural continuity: Retaining institutional knowledge and cultural fit during uncertain times.

Employee expectations: Finnish workers increasingly expect employers to invest in their development, with professional growth opportunities influencing retention.

Practical manifestations include:

• Internal talent marketplaces to match employees with new opportunities
• Structured upskilling programmemes targeting shortage skills
• Cross-training to build organisational flexibility
• Succession planning for aging workforce segments
• Mentorship programmemes pairing experienced workers with newer employees

So what

For candidates: Employers offering clear development paths and learning opportunities provide stronger long-term prospects than those focused purely on current-role fit.

For employers: Retention investments and internal development programmemes yield better ROI than constantly recruiting for shortage positions; treat workforce development as strategic imperative rather than cost center.

9. Demographics and immigration shape long-term supply

Finland faces profound demographic headwinds that intensify structural labour challenges. The population is aging rapidly, with large cohorts approaching retirement across all sectors. This creates massive replacement demand independent of economic growth - roles must be filled simply to maintain current service levels.

Aging workforce impacts:

• Healthcare sector faces waves of retirements just as demand from elderly populations surges
• Skilled trades lose experienced practitioners faster than training pipelines replace them
• Educational institutions face teacher retirements while demand for vocational training increases
• Knowledge transfer becomes critical challenge across industries

Immigration dynamics: Finland has become increasingly proactive in attracting international talent, with work-based residence permits rising substantially in recent years (reaching approximately 19,000 in 2024 according to immigration statistics). However, challenges persist:

• Language barriers (Finnish is notoriously difficult)
• Integration support varies by municipality
• Some policy uncertainty around residence permit renewals
• Competition with other Nordic countries for same international talent pools

Regional variation: Labour market conditions differ substantially by geography. Helsinki, Tampere, Espoo, Oulu, and Turku concentrate opportunities and show stronger growth, while more peripheral regions face population decline and weaker labour demand.

Participation initiatives: Government efforts focus on raising employment among:

• Older workers (delaying retirement, improving age-friendly workplaces)
• Immigrants (language training, credential recognition, integration support)
• Young people (reducing NEET rates, improving school-to-work transitions)
• Women in male-dominated sectors (particularly trades and tech)

So what

For candidates: Geographic flexibility substantially improves prospects; willingness to relocate to growth hubs or to rural areas with specific shortages opens opportunities. For international candidates, investing in Finnish language learning (even basic proficiency) dramatically improves employment prospects and integration.

For employers: Regional recruitment strategies must account for vastly different local conditions. Organizations outside Helsinki metro area may need to recruit nationally or internationally and provide relocation support. Supporting language learning and cultural integration improves retention of international hires.

For institutions: Integration programmemes, language training, credential recognition, and support services directly impact labour market outcomes and should be resourced accordingly.

What this means in practice

For job seekers

• Focus on shortage occupations: Healthcare, skilled trades, technology, and education offer strongest prospects. If currently in other fields, consider retraining pathways into these areas.
• Build digital and data literacy: Baseline requirement across virtually all professional roles; invest in these fundamental capabilities.
• Emphasise applied skills and experience: Demonstrable capabilities, portfolios, projects, and practical achievements differentiate candidates in competitive markets.
• Consider geographic flexibility: Opportunities concentrate in specific cities; willingness to relocate significantly improves prospects.
• Pursue continuous learning: With 50% of workforce requiring reskilling by 2026, demonstrating commitment to ongoing development signals adaptability.
• For international candidates: Invest in Finnish language learning even if working primarily in English; basic proficiency substantially improves integration and longer-term prospects.

For employers

• Expect bifurcated market: Easier hiring in generalist roles, continued difficulty in shortage occupations. Strategies must differentiate accordingly.
• Prioritise retention in shortage roles: Recruiting costs and difficulty make retention investments essential for healthcare professionals, skilled trades, and technical specialists.
• Invest in workforce development: Internal upskilling and reskilling programmemes provide better ROI than constantly recruiting for hard-to-fill positions.
• Look beyond Helsinki: Talent exists in other regions; remote work or regional recruitment strategies can access broader pools.
• Support international hiring: Language training, integration support, and cultural onboarding improve retention of international hires addressing shortage roles.
• Compete on total package: With wage growth constrained by collective bargaining in many sectors, emphasise development opportunities, flexibility, security, and culture.
• Plan for demographic transition: Replacement demand will intensify; proactive succession planning and knowledge transfer programmemes are essential.

For training providers and educational institutions

• Align programmemes with shortage occupations: Healthcare, skilled trades, digital skills, and green energy represent clear areas of sustained demand.
• Emphasise job-ready skills: Employers increasingly value practical capability; ensure programmemes include hands-on experience and demonstrable skill development.
• Build reskilling pathways: Programmes enabling mid-career transitions into shortage occupations serve both individuals and labour market needs.
• Support integration: Language training and cultural integration programmemes improve employment outcomes for immigrant populations.

For policymakers

• Address long-term unemployment: Reskilling programmemes targeting shortage occupations can simultaneously reduce long-term unemployment and address labour shortages.
• Support regional mobility: Housing, family services, and transition support can enable workers to access opportunities in growth hubs.
• Strengthen immigration integration: Language training, credential recognition, and settlement services directly impact labour market integration outcomes.
• Align education with demand: Stronger vocational training pipelines in healthcare, trades, and technical fields address structural shortages.

For all stakeholders

Platforms like Yotru can support these strategies by making skills visible, standardising employer-ready CVs at scale, helping institutions measure learner job readiness, and enabling employers to identify candidates with the right applied experience for Finland's shortage occupations and evolving job requirements.

Looking ahead: Structural challenges persist beyond cyclical recovery

Finland's 2026 labour market is defined by asymmetry. While aggregate indicators show gradual recovery, the lived experience varies dramatically by occupation, sector, and geography. Overall vacancy easing masks persistent and intensifying shortages in critical areas, while rising long-term unemployment creates pools of disconnected job seekers even as thousands of positions remain unfilled.

Future performance depends less on cyclical recovery and more on how effectively Finland addresses structural challenges:

Demographics: Without increased immigration and higher participation rates, replacement demand alone will strain labour supply across sectors.

Skills mismatch: The gap between available worker capabilities and shortage occupation requirements requires systematic reskilling infrastructure.

Regional imbalances: Concentration of opportunities in few cities while peripheral regions decline creates inefficiency and social stress.

Integration capacity: Finland's ability to successfully integrate international workers determines whether immigration can address shortages.

Green transition demands: Achieving climate goals requires massive workforce in renewable energy, clean tech, and sustainable industries - sectors facing their own shortage challenges.

Organizations and individuals who recognize this bifurcated reality - investing in shortage skills, prioritizing retention, embracing geographic or occupational flexibility, and building continuous learning capacity - will navigate Finland's evolving labour market most successfully.

References

Ministry of Economic Affairs and Employment of Finland. (2024). Labour market forecast: Employment to pick up in 2025 [Press release]. Finnish Government. https://valtioneuvosto.fi/en/-/1410877/labour-market-forecast-employment-to-pick-up-in-2025

Ministry of Economic Affairs and Employment of Finland. (2025). Short-term labour market forecast. [Biannual forecast publication]. Referenced in official communications and labour market analyses.

Statistics Finland. (2025). Labour Force Survey [Statistical database]. Statistics Finland. http://www.stat.fi/til/tyti/index_en.html

Statistics Finland. (2025). Job vacancy survey [Quarterly statistics]. Statistics Finland.

State Treasury of Finland. (2025). Labour market reforms [Policy overview]. State Treasury, Finland. https://www.treasuryfinland.fi/investor-relations/sustainability-and-finnish-government-bonds/labour-market-reforms/

EURES - European Labour Authority. (2024). Labour Market Information: Finland [Country profile]. European Labour Authority. https://eures.europa.eu/living-and-working/labour-market-information/labour-market-information-finland_en

Work in Finland. (2025). Labour market [Information portal]. Finnish Immigration Service and Ministry of Economic Affairs. https://www.workinfinland.com/en/why-finland/working-in-finland/labour-market/

OECD. (2026). OECD Economic Surveys: Finland [Forthcoming]. OECD Publishing. https://www.oecd.org/economy/finland-economic-snapshot/

European Commission. (2025). European Economic Forecast [Seasonal publication]. Directorate-General for Economic and Financial Affairs.

Kemianteollisuus ry (Finnish Chemical Industry Federation). (2025). Hydrogen economy strategy projections [Industry analysis]. Referenced in skills-in-demand and green transition analyses.

Supporting and contextual sources:

Edstellar. (2025). Top 10 in-demand skills in Finland for 2026 [Skills analysis]. https://www.edstellar.com/blog/skills-in-demand-in-finland

Alma Career. (2025). Finland market introduction: Economic overview & labour market trends [Market report]. https://www.almacareer.com/blog/country-and-market-introduction-finland

9cv9. (2025). The state of hiring and recruitment in Finland for 2025 [Market analysis]. https://blog.9cv9.com/the-state-of-hiring-and-recruitment-in-finland-for-2025/

Y-Axis. (2025). Finland job market 2025-2026 [Career guide]. https://www.y-axis.com/job-outlook/finland/

Note: Quantitative claims in this article are drawn from official statistical agencies (Statistics Finland, Ministry of Economic Affairs and Employment) and institutional forecasts (OECD, European Commission). Where specific figures are cited, they reflect published forecasts and statistics available as of late 2025. Secondary sources provide supporting context on skills demand and employer sentiment. Labour market outcomes remain subject to economic developments and policy changes.