Ask yourself, if the government pays your rent, your food and even extra on top of that without working, why would you work?
Imagine having a extremely expensive country that pays your bills if you are poor enough. The gap between a poor salary and government handouts is so small that it is worth it for some people to just do nothing and pretend to be looking for work – also if you are broke as shit, all your extra expenses that employed people have to pay for themselves get paid by kela.
Atleast it’s not as bad as sweden, way to go Finland!
Imagine two decades of stagnant wages while inflation marches on, combined with huge CoL. Our economy has sucked for a long time and the decay continues for the foreseeable future
this is of course only part of the problem, but a main one. Less money, less spending, less jobs
As much as people can give you a million economic reasons, the main reason is because it can.
It’s just how infrastructure in a warm equatorial area with little to no natural disasters can be so mediocre, but in Finland you can’t do that, not because or regulation, but because it will fall down the first winter.
Similarly if your economy can support unemployment, and by what amount it can support it, it will.
Is it a good thing? is it a bad thing?… You be the judge.
It is important to notice that the shadow economy is often not taken into consideration in these statistics, and while not much of a factor in Finland, it is in some other places where informal, gray, and black markets runs rampant.
The nature of why a place can support unemployment more than another is often different, from being a warm more community driven place where there’s less need to work to survive, to just having plenty of available resources due to a welfare system in a rich country; whatever it is, if it can happen, it will happen; until it reaches balance, where it cannot support anyone else, (at least not to the quality standards of the person in question, where all others are satisfied or otherwise have no better alternative)
I would imagine that there are multiple variables at play here.
At the one hand, Finnish economy is very export oriented which means that economic downshifts affect us later than others.
On the other hand, for long Finnish economy was structured around Nokia and paper products. Apple killed both those businesses which left Finland with a lot structural issues, like having a lot specalized workers for those industries who have struggled to find work.
Lastly, as many have mentioned here, social benefit network is more extensive than in many other countries. This means that there is a section of population that has been so long unemployed that no one is willing to hire them. Thus, even during economic booms, Finnish unemployment % rarely drops below 5 %.
Finland has large amount of long term unemployed, who have it permanently hard to find work. There are several identified reasons for this. They include:
* people with significantly reduced health.
* people who are taking care of a relative in permanent need of a care-giver.
* people who live in a place with very few employment opportunities, with no possibility of relocation.
* people who have lost control of their life.
Not an expert in any way, but to my understanding this is a reason for relatively high structural unemployment in Finland.
I got fired a few months ago and still havent found a job. Even applied for cleaning and didnt get it. Eventhough i got a ammattitutkinto and 3 years of experience at a full time job 😍😍😍
Bad leadership, lack of investment into the only things in which Finland has any competitive advantages while sharing border with a warmongering rogue state add to a cumulative effect of poisoning Finland’s job market.
Strong welfare system, making it relatively comfortable to be unemployed. Alcohol. Stagnant economy.
Salaries are low, companies going ruptcy, layoffs to save money, not enough job openings, companies are secretly transitioning to hiring 0 hours contract workers to take advantage of people. There’s a big list tbh
Working hardly pays well enough these days.
The way it was explained somewhere is that in Finland and Sweden the European Central Bank (ECB) interest rates are reflected more directly in the interest rates that companies and private individuals pay. We use a lot of loans tied to Euribor rates.
This meant that the interest rate raises by the ECB during the pandemic impacted Finnish and Swedish economies more than most of EU. I’m sure there are other reasons too.
There are many reasons.
-Russian sanctions hits both ways, and many companies were using russian rawmaterials that they refined and sold westward. New more expensive sources with long transport routes make the final product uncompetitive
-Covid disruptions and post covid inflation.
-Government cuts can have impacted domestic spending
-Two right wing governments have indirectly (some may argue directly) interfered in job market negotiations to the employers benefit. Creating strained relations between the employees towards the employers and government, leading to inflamed negotiations and potentially avoidable strikes.
because of kela and kannustinloukku
I can only talk about personal experience, I won’t dare to make generalization or comments.
I have 2 friends that graduated from masters in january and april. There’s no job in their degree because the corresponding industries don’t take entry level/juniors in their fields.
No private sector and minimum wage being close to what you get on benefits i’d say
These are just my two cents, but I would say that the main things currently holding down our economy are: high interest rates, geopolitics and the fact that the government has decided implement austerity measures during a recessions, which prolongs the economic downturn at least temporarily.
There are many side expenses when hiring an employee in Finland. One has to be worth twice as their wage because of income taxes and pension taxes. Aging demographics, pension scheme and healthcare are expensive and they are fund by side expenses of current workers.
I don’t buy the claim that people wouldn’t want to work if there were proper jobs open. If one applies to simple jobs in major cities (Helsinki or Tampere), there will be 500 other applicants. There is a lack of jobs in Finland.
Until the mid 80’s, there were basically no jobless people in Finland.
I don’t like how top comments blame lazy people living of Kela benefits for lack of jobs in Finland. The current right-wing government has created 100 000 jobless more – are they all just lazy?
Our biggest neighbour in business is doing some real dum shit and it’s affecting a lot of indurstries in our country… To top it with all the global problems. Finland is a small country going through some rough times.
Sadly things seem to have to get a lot worse before they get any better. Kyllä se tästä.
Perkele.
Because we keep increasing taxes and drive all of the investments away from Finland
Recession, stagnant wages and economic growth + government cuts. Very few would stay home for the measly ~900-1000 euros you’d get unemployed IF they could get full-time, livable-wage job. (Remember that while 1k may sound a lot, it hardly covers rent in Helsinki and proportionally decreases outside of it due to asumistuki)
There’s quite common misconception that to be sure not to hire someone, unless in big need. I don’t know how we could change that misconception. We should be ready to hire whenever a good guy comes along.
I bet it’s something to do that many entrepreneurs don’t want to put their savings into Finland.
The employers do not want to take risks, the either want the perfect employee or the cheapest, the inbetween positions have already been filled.
For the work seekers the situation is worse as they are expected to move to where the is work and compete against 30 other locals +500 indians or more for every position they apply for.
The wages are also worse in most cases than in Sweden or Norway
Companies have been doing mass layoffs because there are simply no orders to keep people employed. Many companies have gone under. Even the IT sector doesn’t have much work available, there are fewer clients, and the remaining ones have significantly raised their requirements. You can’t even blame the safety nets when job postings have been declining every year, and unemployment continues to rise.
Hello!
What do you think / know the reason in Sweden is?
Im genuinely curious (and worried tbh..)
Regards
/Sweden
Sorry for off topic!
No point to work if I am sitting at home and get more money, than if I would have a 40h job.
let me be honest to you. Finland is very hostile to startups and new business leaders. Thats the only reason. Dont worry about anything else.
Finland is an expensive country to hire labor.
From mainland Europe, Finland is an island.
Most blossoming finnish companies are sold to larger foreign companies.
Lots of jobs are cheaper to do abroad by foreign labor.
Many small things which make running a company in Finland. Including costs, bureaucracy, laws and regulations and so on.
31 comments
Kela?
source?
Ask yourself, if the government pays your rent, your food and even extra on top of that without working, why would you work?
Imagine having a extremely expensive country that pays your bills if you are poor enough. The gap between a poor salary and government handouts is so small that it is worth it for some people to just do nothing and pretend to be looking for work – also if you are broke as shit, all your extra expenses that employed people have to pay for themselves get paid by kela.
Atleast it’s not as bad as sweden, way to go Finland!
Imagine two decades of stagnant wages while inflation marches on, combined with huge CoL. Our economy has sucked for a long time and the decay continues for the foreseeable future
this is of course only part of the problem, but a main one. Less money, less spending, less jobs
As much as people can give you a million economic reasons, the main reason is because it can.
It’s just how infrastructure in a warm equatorial area with little to no natural disasters can be so mediocre, but in Finland you can’t do that, not because or regulation, but because it will fall down the first winter.
Similarly if your economy can support unemployment, and by what amount it can support it, it will.
Is it a good thing? is it a bad thing?… You be the judge.
It is important to notice that the shadow economy is often not taken into consideration in these statistics, and while not much of a factor in Finland, it is in some other places where informal, gray, and black markets runs rampant.
The nature of why a place can support unemployment more than another is often different, from being a warm more community driven place where there’s less need to work to survive, to just having plenty of available resources due to a welfare system in a rich country; whatever it is, if it can happen, it will happen; until it reaches balance, where it cannot support anyone else, (at least not to the quality standards of the person in question, where all others are satisfied or otherwise have no better alternative)
I would imagine that there are multiple variables at play here.
At the one hand, Finnish economy is very export oriented which means that economic downshifts affect us later than others.
On the other hand, for long Finnish economy was structured around Nokia and paper products. Apple killed both those businesses which left Finland with a lot structural issues, like having a lot specalized workers for those industries who have struggled to find work.
Lastly, as many have mentioned here, social benefit network is more extensive than in many other countries. This means that there is a section of population that has been so long unemployed that no one is willing to hire them. Thus, even during economic booms, Finnish unemployment % rarely drops below 5 %.
Finland has large amount of long term unemployed, who have it permanently hard to find work. There are several identified reasons for this. They include:
* people with significantly reduced health.
* people who are taking care of a relative in permanent need of a care-giver.
* people who live in a place with very few employment opportunities, with no possibility of relocation.
* people who have lost control of their life.
Not an expert in any way, but to my understanding this is a reason for relatively high structural unemployment in Finland.
I got fired a few months ago and still havent found a job. Even applied for cleaning and didnt get it. Eventhough i got a ammattitutkinto and 3 years of experience at a full time job 😍😍😍
Bad leadership, lack of investment into the only things in which Finland has any competitive advantages while sharing border with a warmongering rogue state add to a cumulative effect of poisoning Finland’s job market.
Strong welfare system, making it relatively comfortable to be unemployed. Alcohol. Stagnant economy.
Salaries are low, companies going ruptcy, layoffs to save money, not enough job openings, companies are secretly transitioning to hiring 0 hours contract workers to take advantage of people. There’s a big list tbh
Working hardly pays well enough these days.
The way it was explained somewhere is that in Finland and Sweden the European Central Bank (ECB) interest rates are reflected more directly in the interest rates that companies and private individuals pay. We use a lot of loans tied to Euribor rates.
This meant that the interest rate raises by the ECB during the pandemic impacted Finnish and Swedish economies more than most of EU. I’m sure there are other reasons too.
There are many reasons.
-Russian sanctions hits both ways, and many companies were using russian rawmaterials that they refined and sold westward. New more expensive sources with long transport routes make the final product uncompetitive
-Covid disruptions and post covid inflation.
-Government cuts can have impacted domestic spending
-Two right wing governments have indirectly (some may argue directly) interfered in job market negotiations to the employers benefit. Creating strained relations between the employees towards the employers and government, leading to inflamed negotiations and potentially avoidable strikes.
because of kela and kannustinloukku
I can only talk about personal experience, I won’t dare to make generalization or comments.
I have 2 friends that graduated from masters in january and april. There’s no job in their degree because the corresponding industries don’t take entry level/juniors in their fields.
No private sector and minimum wage being close to what you get on benefits i’d say
These are just my two cents, but I would say that the main things currently holding down our economy are: high interest rates, geopolitics and the fact that the government has decided implement austerity measures during a recessions, which prolongs the economic downturn at least temporarily.
There are many side expenses when hiring an employee in Finland. One has to be worth twice as their wage because of income taxes and pension taxes. Aging demographics, pension scheme and healthcare are expensive and they are fund by side expenses of current workers.
I don’t buy the claim that people wouldn’t want to work if there were proper jobs open. If one applies to simple jobs in major cities (Helsinki or Tampere), there will be 500 other applicants. There is a lack of jobs in Finland.
Until the mid 80’s, there were basically no jobless people in Finland.
I don’t like how top comments blame lazy people living of Kela benefits for lack of jobs in Finland. The current right-wing government has created 100 000 jobless more – are they all just lazy?
Our biggest neighbour in business is doing some real dum shit and it’s affecting a lot of indurstries in our country… To top it with all the global problems. Finland is a small country going through some rough times.
Sadly things seem to have to get a lot worse before they get any better. Kyllä se tästä.
Perkele.
Because we keep increasing taxes and drive all of the investments away from Finland
Recession, stagnant wages and economic growth + government cuts. Very few would stay home for the measly ~900-1000 euros you’d get unemployed IF they could get full-time, livable-wage job. (Remember that while 1k may sound a lot, it hardly covers rent in Helsinki and proportionally decreases outside of it due to asumistuki)
There’s quite common misconception that to be sure not to hire someone, unless in big need. I don’t know how we could change that misconception. We should be ready to hire whenever a good guy comes along.
I bet it’s something to do that many entrepreneurs don’t want to put their savings into Finland.
The employers do not want to take risks, the either want the perfect employee or the cheapest, the inbetween positions have already been filled.
For the work seekers the situation is worse as they are expected to move to where the is work and compete against 30 other locals +500 indians or more for every position they apply for.
The wages are also worse in most cases than in Sweden or Norway
Companies have been doing mass layoffs because there are simply no orders to keep people employed. Many companies have gone under. Even the IT sector doesn’t have much work available, there are fewer clients, and the remaining ones have significantly raised their requirements. You can’t even blame the safety nets when job postings have been declining every year, and unemployment continues to rise.
Hello!
What do you think / know the reason in Sweden is?
Im genuinely curious (and worried tbh..)
Regards
/Sweden
Sorry for off topic!
No point to work if I am sitting at home and get more money, than if I would have a 40h job.
let me be honest to you. Finland is very hostile to startups and new business leaders. Thats the only reason. Dont worry about anything else.
Finland is an expensive country to hire labor.
From mainland Europe, Finland is an island.
Most blossoming finnish companies are sold to larger foreign companies.
Lots of jobs are cheaper to do abroad by foreign labor.
Many small things which make running a company in Finland. Including costs, bureaucracy, laws and regulations and so on.
Comments are closed.