Key Takeaways
- Finland’s job market in 2025 is experiencing delayed recovery, with employers navigating persistent skill shortages and shifting workforce demands.
- Structural changes in recruitment highlight the growing role of digitalization, automation, and flexible employment models in Finland.
- Companies must adapt hiring strategies to address talent gaps, support reskilling, and remain competitive in Finland’s evolving labor market.
The Finnish labor market in 2025 stands at a critical juncture, shaped by a mix of economic headwinds, shifting demographics, and the impact of rapid digital transformation. Following a period of uncertainty in recent years, Finland’s hiring and recruitment landscape is experiencing a slower-than-expected recovery. While many sectors are showing resilience, others are grappling with structural changes that demand new strategies from both employers and policymakers. As organizations adapt to these evolving dynamics, the state of hiring in Finland offers a compelling case study of how economies navigate delayed recovery in a globalized and technologically advanced world.
One of the most pressing challenges driving recruitment trends in Finland is the country’s demographic reality. With an aging population and declining birth rates, the supply of skilled labor continues to shrink, creating a talent gap that businesses must urgently address. This demographic shift is further complicated by the need to attract international talent to sustain economic growth. Employers are increasingly competing not only within domestic borders but also on a global scale, where remote work opportunities and migration policies play significant roles in shaping workforce availability.
At the same time, structural changes within industries are reshaping the types of skills in demand. Finland’s strong focus on innovation, green transition initiatives, and digitalization has created rising demand for technology specialists, engineers, and sustainability experts. Yet, traditional sectors such as manufacturing, healthcare, and logistics are also under pressure to modernize their workforce strategies to stay competitive. The mismatch between available talent and the skills required by employers has become one of the defining features of the Finnish recruitment landscape in 2025.
Economic conditions also continue to weigh heavily on hiring decisions. The Finnish economy, while stable, has faced slower growth compared to its Nordic neighbors. Inflationary pressures, cautious business investment, and global economic uncertainties have contributed to delayed recovery in employment levels. Many organizations are adopting more cautious recruitment strategies, focusing on flexible staffing, contract work, and selective hiring to navigate volatility. This has led to a transformation in the traditional employment model, with agility and adaptability becoming central to workforce planning.
Beyond economics, Finland’s recruitment environment is also being reshaped by evolving workplace expectations. Candidates now prioritize flexible working arrangements, opportunities for professional development, and alignment with organizational values. The growing emphasis on employer branding, diversity and inclusion, and employee well-being is compelling companies to rethink their talent acquisition approaches. Employers who fail to adapt to these expectations risk losing out in an increasingly competitive labor market.
The role of government policies and international collaboration cannot be overlooked in this context. Finland has been actively working on initiatives to attract foreign professionals, streamline immigration processes, and invest in education and training programs. However, challenges remain in ensuring that labor market reforms align with both business needs and employee expectations. The state’s ability to balance economic resilience with social inclusivity will play a crucial role in shaping recruitment outcomes in the coming years.
In essence, the state of hiring and recruitment in Finland in 2025 reflects a story of delayed recovery intertwined with profound structural change. Employers, job seekers, and policymakers alike are navigating a complex environment where resilience, innovation, and adaptability are essential. This report delves deeper into the factors driving these trends, examining how Finland’s labor market is evolving, the challenges it faces, and the strategies being deployed to secure long-term competitiveness in an era of transformation.
Before we venture further into this article, we would like to share who we are and what we do.
About 9cv9
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With over nine years of startup and business experience, and being highly involved in connecting with thousands of companies and startups, the 9cv9 team has listed some important learning points in this overview of The State of Hiring and Recruitment in Finland for 2025.
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The State of Hiring and Recruitment in Finland for 2025
- Macroeconomic Environment: A Tentative and Uncertain Recovery
- The State of the Labor Market: A Paradox of Supply and Demand
- Sectoral Performance: A Segmented Hiring Landscape
- Skills in Demand: Bridging the Structural Mismatch
- Evolving Recruitment Methodologies and Candidate Experience
- Demographic Challenges and the Evolution of Immigration Policy
- Strategic Outlook and Recommendations for 2026
1. Macroeconomic Environment: A Tentative and Uncertain Recovery
Macroeconomic Environment: A Fragile and Uneven Recovery
- Finland’s hiring and recruitment market in 2025 reflects the complexities of an economy transitioning from two consecutive years of contraction.
- Between 2023 and 2024, real GDP recorded back-to-back declines of -1% and -0.1%, mainly caused by:
- Severe drops in construction-related investment
- Postponement of large-scale household consumption purchases
- Fiscal tightening through reductions in social benefits
- Geopolitical uncertainties affecting trade and investor sentiment
- Service exports acted as one of the few stabilizing forces during this downturn, preventing further economic deterioration.
- However, the overall macroeconomic picture in early 2025 remains cautious and marked by a tentative recovery.
Diverging Forecasts and Market Uncertainty
- The lack of consensus among economic authorities underscores Finland’s unpredictable outlook:
- Bank of Finland: 0.5% GDP growth forecast
- European Commission and State Treasury: 1.0% growth forecast
- Ministry of Finance: 1.3% growth projection
- Industry analyses: optimistic estimates of 1.5–1.6% growth
- Despite projections, real-time data indicates stagnation:
- GDP growth was flat (0.0%) in both Q1 and Q2 of 2025
- The weak momentum reflects vulnerabilities tied to global trade policies and geopolitical instability
- This wide range of forecasts complicates long-term business planning, particularly in workforce hiring, restructuring, and expansion.
Business Confidence and Investment Outlook
- Business sentiment remains mixed:
- February 2025: Confidence increased by 4.7% but slowed from 6.7% the previous month
- July 2025: Most industries reported subdued confidence, except manufacturing which showed slight resilience
- Investment climate:
- Private investment: Expected to contract further in 2025 due to policy and trade uncertainties
- Public investment: Military expenditure is projected to support growth in 2025–2026
- Fiscal stance:
- Finland’s fiscal deficit will remain significant, ranging between 3.7%–3.8% of GDP in 2025
- Debt-to-GDP ratio is projected to surpass 86% in 2025, limiting fiscal flexibility for future labor market reforms
Inflation, Wages, and Household Purchasing Power
- Some stabilizing trends are emerging in consumer dynamics:
- Inflation (HICP) is forecasted at 1.7% for 2025, remaining under the 2% target
- Wage growth reached 1.5% year-over-year by June 2025
- Average monthly earnings hit 4,107 EUR in Q1 2025, a record level
- Rising real incomes are expected to stimulate private consumption in the latter half of 2025, creating moderate demand for new jobs in retail, services, and domestic industries.
- However, with unemployment remaining high, job creation will likely be insufficient to offset labor market slack.
Labor Market Dynamics: Employment Pressures and Hiring Challenges
- Unemployment remains persistently elevated, reflecting slow-paced recovery:
- Forecast range for 2025: 8.6–9.1%
- Jobseekers are expected to increase slightly to 323,000 in 2025, up from 313,000 in 2024
- Employment rate for the 15–64 age group will likely dip from 72.1% (2024) to 71.6% (2025), before a modest rebound in 2026.
- Structural hiring challenges are evident:
- Shortages in digital, green technology, and healthcare-related professions persist
- Regional disparities in job creation, with urban areas showing higher resilience than rural economies
- Employers remain cautious in recruitment decisions, balancing wage pressures against productivity concerns
Key Finnish Economic & Labor Market Indicators, 2024–2026
| Indicator | 2024 | 2025 (Forecast) | 2026 (Forecast) |
|---|---|---|---|
| GDP Growth (%, yoy) | -0.1 | 0.5–1.3 | 1.3–1.6 |
| HICP Inflation (%, yoy) | 1.0 | 1.7 | 1.5 |
| Unemployment Rate (%) | 8.4 | 8.6–9.1 | 8.3–9.0 |
| Employment Rate (15–64, %) | 72.1 | 71.6 | 71.8 |
| Unemployed Jobseekers (thousands) | 313 | 323 | 319 |
2. The State of the Labor Market: A Paradox of Supply and Demand
The Labor Market Paradox: High Employment Yet Persistent Unemployment
- Finland’s labor market in 2025 presents a striking paradox: a historically strong employment rate exists alongside a persistently high unemployment rate.
- Unlike a traditional post-recession downturn—where job losses directly drive unemployment—the Finnish case is shaped by structural supply-side shifts.
- Employment trends:
- Employment rate for the 20–64 age group remained strong, standing at 76.2% in April and climbing to 77.2% in June 2025.
- Unemployment dynamics:
- January 2025: Unemployment peaked at 12%
- Spring 2025: Declined slightly but remained high, with 10.5% in May and 9.9% in June
- Official annual forecast: 8.6% average unemployment
- Ministry of Economic Affairs and Employment forecast: 9.1%
Rising Labor Force Participation: Drivers of Supply-Side Pressure
- The core explanation for this paradox lies in the rapid expansion of the labor force rather than a collapse in employment.
- Key drivers include:
- Extended retirement age policies keeping older workers in the market longer
- Higher participation from younger cohorts entering the labor market earlier
- Increased immigration contributing to overall workforce supply
- Resulting effects:
- While total employment levels held steady in early 2025, the surge in job seekers intensified competition for available roles
- The mismatch between growing labor supply and limited new job creation has constrained absorption capacity, pushing unemployment upwards despite high employment rates
Declining Job Vacancies: Weakening Demand-Side Dynamics
- On the demand side, the most pressing issue is the sharp contraction in job openings:
- Q2 2025: Job vacancies fell by nearly 40% year-on-year, dropping from 47,000 in Q2 2024 to 28,900
- Private sector contraction: Vacancies declined by 46%, from 34,700 to 18,800, reaching pre-2015 levels
- Employer advantages:
- Hard-to-fill positions declined from 43% to 37% of vacancies, indicating a broader availability of talent
- This shift reflects an employer-driven market, with greater bargaining power for companies in most sectors
- Sectoral nuances:
- While general vacancies declined, highly specialized fields—such as advanced technology, healthcare, and green innovation—continue to face shortages, maintaining competition for niche expertise
Long-Term Unemployment: A Persistent Structural Challenge
- The decline in vacancies has intensified the risk of entrenched long-term unemployment:
- Forecast for 2025: 136,000 individuals classified as long-term unemployed
- Forecast for 2026: Expected to rise further to around 140,000
- Key implications:
- This growing figure represents one of Finland’s most serious labor market vulnerabilities
- Without stronger recovery or active labor policies, structural unemployment risks becoming a permanent fixture
- Youth labor dynamics:
- Youth unemployment is projected to decline at a faster rate than other demographic groups, suggesting stronger absorption of younger talent compared to older displaced workers
Finnish Job Vacancies by Sector and Region (Q2 2024 vs. Q2 2025)
| Category | Q2 2024 Vacancies | Q2 2025 Vacancies | % Change |
|---|---|---|---|
| Total Vacancies | 47,000 | 28,900 | -39% |
| Private Sector | 34,700 | 18,800 | -46% |
| Construction Sector | 7,200 | 4,100 | -43% |
| Helsinki-Uusimaa | 20,000 | 12,000 | -40% |
| Northern & Eastern FI | 9,500 | 5,600 | -41% |
| Western Finland | 10,200 | 6,200 | -39% |
| Southern Finland | 7,300 | 5,100 | -30% |
3. Sectoral Performance: A Segmented Hiring Landscape
A Segmented Hiring Landscape: Contrasting Realities Across Sectors
- The Finnish labor market in 2025 reveals a strikingly uneven recovery, where industries are diverging into winners and losers.
- Instead of a uniform downturn, the economy reflects a “two-speed” structure:
- Certain sectors such as construction remain in deep recessionary conditions
- Others, particularly technology and healthcare, are experiencing sustained growth and talent shortages
- This divergence has profound implications for recruitment, creating both contraction-driven unemployment in some sectors and critical hiring pressures in others.
Construction Sector: The Epicenter of Decline
- Confidence in construction has deteriorated to unprecedented levels:
- July 2025: Confidence balance index fell to -37, the weakest reading across the entire European Union
- Core drivers of the collapse include:
- Elevated interest rates restricting financing for new development projects
- Escalating costs of raw materials and building inputs
- Investor hesitancy and postponed infrastructure commitments
- Employment and vacancy trends:
- Job vacancies contracted by 74% year-on-year
- Decline from 5,800 vacancies in Q2 2024 to only 1,500 in Q2 2025
- Recruitment in construction has effectively stalled, reflecting a systemic freeze in demand
Technology and Innovation: A Resilient Growth Engine
- Technology remains Finland’s strongest-performing sector, underpinned by global digitalization trends:
- Contribution to GDP: 15% in 2025
- Direct employment: 330,000 workers
- Sector growth projection: 4.2% expansion in 2025 despite broader economic slowdown
- Long-term labor demand is robust:
- Estimated 130,000 new skilled professionals needed by 2035
- Approximately 18,000 new IT job openings expected in 2025 alone
- Sub-sectors driving momentum:
- Photonics:
- Growth of 25% between 2023–2025, reaching a business volume of €2.5 billion
- Creation of 1,500 new jobs in two years
- Expected to expand by 48% over the next three years
- Cybersecurity:
- Sustained growth of 15% annually through 2025
- Future growth forecast at 7.23% annually until 2029
- Driven by escalating global cyber threats and the protection of critical infrastructure
- Artificial Intelligence (AI):
- Generative AI technologies projected to add €20–25 billion to Finland’s GDP in the coming years
- Strong recruitment demand for machine learning engineers, data scientists, and AI specialists
- Photonics:
Healthcare Sector: Persistent Structural Shortages
- Healthcare remains under acute pressure, with demographic shifts intensifying labor shortages:
- Finland’s aging population has sharply increased demand for nursing staff and medical specialists
- Chronic understaffing has placed stress on hospitals, elderly care facilities, and primary health providers
- Policy recognition and intervention:
- The government maintains an official list of shortage occupations, with healthcare roles consistently at the top
- Inclusion on this list allows greater flexibility for recruiting foreign professionals to offset domestic gaps
- Implications for recruitment:
- Healthcare employers face one of the most competitive talent markets, with reliance on international hiring set to increase
- This labor scarcity underscores the structural imbalance between shrinking vacancies in sectors like construction and expanding demand in healthcare
Table: Sectoral Hiring and Vacancy Trends in Finland, 2024–2025
| Sector | Vacancies Q2 2024 | Vacancies Q2 2025 | % Change | Employment Outlook |
|---|---|---|---|---|
| Construction | 5,800 | 1,500 | -74% | Severe decline |
| Technology (overall) | 15,000* | 18,000 (proj.) | +20% | Strong growth |
| Photonics | 600 | 2,100 | +250% | Rapid expansion |
| Cybersecurity | 2,000 | 2,300 | +15% | Sustained growth |
| AI-related roles | 2,500 | 3,200 | +28% | High demand |
| Healthcare | 4,000 | 4,500 | +12% | Structural shortage |
*2024 figure based on estimated IT vacancies across sub-sectors.
4. Skills in Demand: Bridging the Structural Mismatch
Structural Skills Mismatch in Finland’s Labor Market
- Finland’s employment challenges in 2025 are defined not only by weak economic recovery but by a deep structural imbalance between workforce skills and labor market demand.
- The paradox:
- Rising unemployment rates signal a growing pool of job seekers.
- Yet, thousands of specialized positions remain unfilled across critical industries.
- This mismatch is not temporary or cyclical—it reflects long-term transformations in the economy where technological innovation, demographic shifts, and globalization demand skills that many job seekers do not currently possess.
Technology and Digital Competencies: The Core of the Deficit
- The Finnish technology sector is expanding at a pace that labor supply cannot match.
- Current demand projections:
- 130,000 additional skilled workers required in ICT and technology roles by 2035.
- Approximately 18,000 new IT roles anticipated in 2025 alone.
- Critical skills shortages within the sector:
- Cybersecurity
- Rising global threats, data breaches, and infrastructure vulnerabilities increase urgency.
- Financial, energy, and government sectors are most affected.
- Artificial Intelligence & Machine Learning
- 70% of Finnish companies consider AI essential for future competitiveness.
- Generative AI is projected to add €20–25 billion to GDP, yet demand for specialists far exceeds supply.
- Cloud Computing, DevOps, and Blockchain
- Digital transformation across industries drives demand for infrastructure and integration expertise.
- Programming Languages
- Python and JavaScript dominate hiring requirements across AI, data science, and web development.
- Proficiency in these languages has become a threshold requirement for advanced digital roles.
- Cybersecurity
Healthcare Sector: Acute and Persistent Shortages
- Finland’s aging population continues to generate sustained demand for healthcare professionals.
- Skills and role shortages include:
- General practitioners, chief physicians, and specialized doctors
- Nurses and practical nurses
- Dental hygienists and audiologists
- Firefighters and funeral service workers (linked to broader essential service provision)
- Challenges intensifying the shortage:
- Language barriers for foreign recruits
- Migration policies that have yet to fully adapt to healthcare’s urgent needs
- Training pipelines that cannot meet the volume of retiring workers leaving the sector
- Policy measures:
- The Government Decree on Labor Shortage Sectors (June 2025) formalized an official list of shortage occupations to enable faster international recruitment.
Surplus Occupations and the Need for Reskilling
- While certain roles remain in chronic shortage, others are oversupplied:
- Secretaries
- Graphic designers
- Architects
- This imbalance illustrates the divergence between traditional professional fields and emerging digital/healthcare-driven demand.
- Reskilling and lifelong learning initiatives are becoming central:
- It is estimated that 50% of employees in Finland will require reskilling or upskilling by 2025.
- Employers are increasingly expected to play an active role in training rather than relying solely on external recruitment.
- Soft skills such as adaptability, problem-solving, and collaboration are now considered equally important as technical proficiency.
Table: Finland’s Labor Market Skills Landscape, 2025
| Category | High-Demand Skills & Roles | Oversupplied Roles | Policy/Market Implications |
|---|---|---|---|
| Technology & ICT | Cybersecurity, AI, Machine Learning, Cloud, Python, JavaScript, Blockchain | Secretaries, Graphic Designers | Persistent shortage; urgent reskilling and foreign recruitment needed |
| Healthcare | Doctors, Nurses, Dental Hygienists, Audiologists, Firefighters, Funeral Service Workers | – | Migration reforms and workforce planning critical |
| Traditional Professions | – | Architects, Secretaries, Designers | Oversupply indicates declining relative demand |
| Cross-Sector Soft Skills | Adaptability, Problem-Solving, Collaboration | – | Employers must integrate training and development strategies |
5. Evolving Recruitment Methodologies and Candidate Experience
Transformation of Recruitment Practices in Finland
- Recruitment in Finland during 2025 is undergoing a paradigm shift, combining advanced digital solutions with people-centered hiring philosophies.
- The emphasis is shifting from rigid, traditional hiring methods toward data-driven recruitment strategies and holistic candidate experiences.
- Companies are increasingly recognizing that the competition for talent is not simply about filling vacancies but about creating sustainable workforce pipelines in a labor market defined by shortages and mismatches.
Rise of Talent Intelligence Platforms
- The most notable development has been the adoption of talent intelligence platforms, which extend beyond conventional applicant tracking systems.
- Key functions include:
- Use of AI and machine learning to analyze candidate behavior and workforce trends.
- Integration of multiple data sources, including professional networks and HR systems, for predictive hiring.
- Identification of passive candidates who are not actively job-seeking but open to opportunities.
- Example: Jobilla, a Finland-based recruitment platform, demonstrates how AI-driven tools expand the accessible talent pool and improve recruitment efficiency.
- 9cv9 Recruitment Agency is also leveraging AI-driven recruitment technologies, offering employers the ability to access wider talent markets across Finland, the Nordics, and beyond. The agency specializes in helping organizations bridge talent shortages with a mix of advanced tools and personalized advisory services.
Social and Professional Networks as Recruitment Channels
- Digital professional networks remain central to talent acquisition strategies in Finland.
- Evidence from the Finnish recruitment market highlights:
- LinkedIn is used by approximately 85% of recruiters, making it the most influential recruitment channel.
- Recruiters consistently report high success rates in securing candidates via LinkedIn, both active and passive.
- Gig and freelance platforms such as Upwork are gaining prominence, particularly for niche roles like SEO specialists, social media managers, and content strategists.
- This indicates that recruitment is no longer confined to national labor pools but increasingly internationalized and platform-driven.
Shift in Hiring Philosophy: From Rigid Skills to Human Potential
- Finnish employers in 2025 are reevaluating what makes a strong candidate.
- Emerging recruitment philosophy emphasizes:
- Motivation, cultural alignment, and values over strictly industry-specific experience.
- Recognition of transferable skills and adaptability as crucial qualities.
- Growing acceptance of employment gaps, reflecting broader shifts in work-life patterns and career trajectories.
- Companies adopting this perspective report greater employee retention and long-term performance, as they are hiring based on potential rather than immediate technical match.
Employer Branding and Candidate Experience
- In a labor market defined by structural shortages, employer branding has evolved from a desirable add-on to a strategic necessity.
- Critical aspects of employer branding in 2025 include:
- Flexible work arrangements: More than 60% of Finnish companies now offer remote or hybrid work, particularly appealing to international talent.
- Values-driven cultures: Employees increasingly select employers aligned with sustainability, equity, and innovation values.
- Transparent career pathways: Candidates demand clarity on professional growth and development opportunities.
- Recruitment agencies such as 9cv9 emphasize employer branding as a decisive factor, helping organizations present themselves as employers of choice to both domestic and international candidates.
Table: Evolution of Recruitment Practices in Finland, 2025
| Recruitment Dimension | Traditional Approach | 2025 Modern Approach | Implications for Employers |
|---|---|---|---|
| Candidate Sourcing | Job boards and print advertisements | AI-driven talent intelligence platforms, LinkedIn, 9cv9 | Access to broader and more diverse talent pools |
| Evaluation Criteria | Rigid technical requirements | Motivation, adaptability, values alignment | Enhanced retention and long-term fit |
| Recruitment Channels | Local labor market focus | International, digital-first networks | Attracting both active and passive candidates |
| Employer Branding | Secondary consideration | Strategic necessity with focus on culture and flexibility | Competitive advantage in talent-scarce sectors |
| Work Arrangements | Predominantly in-office | Remote, hybrid, flexible setups | Essential for attracting global talent |
6. Demographic Challenges and the Evolution of Immigration Policy
Demographic Pressures and Workforce Contraction
- Finland’s labor market in 2025 is shaped by severe demographic constraints that threaten long-term economic sustainability.
- Key demographic trends:
- Finland records one of the lowest fertility rates in Europe, with an average of 1.26 children per woman.
- The working-age population (15–64 years) is projected to shrink by 76,000 by 2040 and by 310,000 by 2060.
- Despite increases in the effective retirement age (63.1 years in 2024), it remains below the official retirement threshold of 64.75 years.
- The combination of aging citizens, declining births, and early retirement translates into fewer domestic workers supporting a growing elderly population.
- This imbalance exerts pressure on public finances, healthcare, and labor supply, creating an urgent reliance on immigration as the key stabilizer for economic growth.
Evolution of Immigration Policy in 2025
- The Finnish government introduced a series of legislative amendments in June 2025 to modernize immigration and labor permit regulations.
- Core changes include:
- Introduction of a “protection period”:
- Standard work permit holders have three months to secure new employment after premature termination.
- Specialists and long-term residents are granted six months.
- Mandatory employer reporting:
- Employers must notify the Finnish Immigration Service (Migri) within 14 days if a foreign employee’s contract ends prematurely.
- Linking permits more tightly to employment relationships, ensuring closer regulatory oversight.
- Introduction of a “protection period”:
Flexibility for Shortage Sectors
- To balance stricter monitoring, the reforms also introduced greater mobility for foreign workers:
- Residence permit holders can now transition between roles in official labor shortage sectors without applying for a new permit.
- Previously, such a change required a lengthy reapplication process.
- The government continues to promote the Talent Boost Program, aimed at attracting:
- Highly skilled professionals in ICT, engineering, and healthcare.
- International students and researchers seeking long-term integration into the Finnish economy.
- Minimum income thresholds for residence permits increased from 1,399 EUR to 1,600 EUR per month in January 2025, aligning wages with Finland’s high cost of living and ensuring a baseline of financial security for incoming workers.
Decline in Foreign Talent Attraction
- Despite reforms, Finland is witnessing reduced inflows of foreign labor:
- Work permit applications fell by 13.76% in 2023.
- In 2024, applications dropped further, with 4,000 fewer compared to the previous year.
- The IT and technology sector—previously a strong magnet for international professionals—has been disproportionately affected, recording fewer approvals.
- Underlying causes:
- Perceived insecurity due to the “protection period” regulation, which ties residency more strictly to employment.
- Weaker economic outlook and slower-than-expected recovery in Finland’s key industries.
- Administrative complexity and concerns about bureaucratic risk.
Balancing Short-Term Risks with Long-Term Gains
- The success of these policies hinges on whether flexibility and sectoral mobility outweigh fears of instability among foreign workers.
- Finland’s government strategy is built on a dual mandate:
- Safeguarding labor markets by ensuring stricter oversight.
- Enhancing attractiveness for highly skilled professionals through mobility and opportunity.
- Employers and recruitment agencies must adapt by:
- Offering clearer communication about residency rights to international candidates.
- Highlighting opportunities in shortage sectors such as healthcare, ICT, and engineering.
- Building stronger employer branding campaigns that emphasize Finland’s stability, safety, and quality of life to offset negative perceptions.
Table: Finland’s Immigration Policy Changes, 2025
| Policy Dimension | Pre-2025 Framework | Post-June 2025 Framework | Implications for Recruitment |
|---|---|---|---|
| Protection Period for Foreign Workers | No formal grace period | 3 months (general), 6 months (specialists) | Higher risk perception among candidates |
| Sectoral Mobility | New permit required for job/sector change | Free mobility within shortage sectors | Increased flexibility for employers |
| Employer Reporting Obligations | No strict reporting | Mandatory 14-day notification to Migri | Tighter oversight of employment |
| Minimum Monthly Income | 1,399 EUR | 1,600 EUR | Ensures financial stability but raises barriers |
| Talent Attraction Initiatives | Limited initiatives (Talent Boost in pilot phase) | Talent Boost expansion to ICT, healthcare, research | Targets skilled professionals |
7. Strategic Outlook and Recommendations for 2026
Strategic Outlook for 2026: Navigating a Fragmented Labor Market
- The Finnish labor market in 2025 has been marked by delayed recovery and structural volatility.
- A paradox defines the year:
- On one hand, the labor supply is expanding, partly due to demographic shifts and immigration.
- On the other hand, job vacancies have sharply contracted, reflecting economic fragility.
- The result is a two-speed economy:
- Certain industries, such as cybersecurity, photonics, and green technology, are experiencing strong growth and fierce competition for skilled professionals.
- Simultaneously, traditional sectors in manufacturing and retail face contraction, leaving many candidates competing for limited opportunities.
- Employers and policymakers must acknowledge this fragmented hiring environment, developing strategies tailored to sector-specific realities rather than relying on broad, market-wide approaches.
Employer Strategies for 2026
- To thrive in the evolving recruitment landscape, organizations must adopt differentiated and forward-looking strategies:
Segmented Hiring Approaches
- High-growth industries should focus on:
- Enhancing employer branding to stand out in a crowded talent marketplace.
- Offering competitive remuneration packages and performance-linked incentives.
- Providing flexible, purpose-driven workplaces to appeal to younger professionals and international talent.
- Struggling sectors can benefit from:
- Access to a larger candidate pool, enabling more selectivity in hiring.
- Leveraging surplus labor to identify talent with transferrable skills for reskilling opportunities.
Reskilling and Upskilling Imperatives
- The scale of the structural skills gap is substantial:
- Forecasts suggest that 50% of Finland’s workforce will require reskilling or upskilling by 2025–2026.
- Employers cannot depend solely on external recruitment to fill specialized roles.
- Key actions include:
- Establishing continuous training frameworks for both current employees and new hires.
- Partnering with vocational institutions and universities to build talent pipelines aligned with high-growth sectors.
- Prioritizing digital literacy, AI integration, and sustainability-focused competencies.
Navigating New Immigration Policies
- Immigration will remain central to alleviating demographic decline, but employers must adapt to regulatory changes:
- The “protection period” for foreign workers may appear restrictive, but companies can reframe it as a guarantee of mobility and security within shortage sectors.
- Proactive measures include:
- Supporting international hires with legal, cultural, and administrative integration.
- Communicating the benefits of the Talent Boost Program and the ability to change roles without reapplying for permits.
- Positioning Finland as a long-term career destination, not merely a short-term employment opportunity.
Labor Market Forecast for 2026 and Beyond
- According to projections from the Ministry of Economic Affairs and Employment:
- The labor market is expected to begin gradual recovery in early 2026.
- Employment is forecast to grow steadily, while the number of unemployed jobseekers begins to decline.
- The national unemployment rate is projected to fall:
- 9.0% in 2026
- 8.4% in 2027
- Challenges remain:
- The number of long-term unemployed is forecast to increase to 140,000 in 2026, posing social and economic risks.
- Without effective intervention, Finland risks a scenario where structural unemployment persists even amidst sectoral growth.
Table: Finland’s Labor Market Outlook, 2025–2027
| Indicator | 2025 (Current) | 2026 (Forecast) | 2027 (Forecast) |
|---|---|---|---|
| Unemployment Rate | 9.4% | 9.0% | 8.4% |
| Long-Term Unemployed | 132,000 | 140,000 | 137,000 |
| High-Growth Sectors | Cybersecurity, Photonics, Green Tech | Strong expansion continues | Consolidated global competitiveness |
| Contracting Sectors | Retail, Manufacturing | Ongoing decline | Stabilisation possible |
| Skills Gap Projections | 48% workforce requiring reskilling | 50% workforce requiring reskilling | Reduction possible with intervention |
Strategic Recommendations for Policymakers and Employers
- Develop multi-sector recruitment policies that reflect labor market asymmetries.
- Invest in national reskilling programs to align displaced workers with high-growth opportunities.
- Strengthen Finland’s global positioning by:
- Highlighting its innovation ecosystem in photonics, AI, and clean energy.
- Promoting flexible immigration rules to attract international expertise.
- Collaborate with recruitment agencies such as 9cv9 to bridge international talent pipelines and connect Finnish employers with global professionals.
Conclusion
The state of hiring and recruitment in Finland in 2025 highlights a complex landscape shaped by both opportunities and challenges. While signs of recovery are visible following years of economic turbulence, the process remains slower than expected, largely due to structural shifts in the labor market, demographic constraints, and sector-specific disparities. Employers are navigating a transitional period where traditional hiring methods are no longer sufficient, and long-term solutions require adapting to new realities.
One of the most pressing factors influencing Finland’s recruitment market is demographic change. With an aging workforce and a shrinking pool of working-age citizens, organizations are increasingly struggling to fill critical roles, particularly in healthcare, technology, and engineering. This labor shortage not only affects domestic companies but also multinational firms seeking to expand their presence in Finland. As a result, recruitment agencies and employers are placing greater emphasis on international talent acquisition, cross-border hiring, and policies that attract skilled migrants to sustain growth.
At the same time, structural changes within industries have further reshaped demand for talent. Traditional manufacturing continues to face competition from automation and global supply chain disruptions, while knowledge-based sectors such as IT, clean energy, and digital services are experiencing rapid expansion. This uneven distribution of growth means recruitment strategies must evolve to align with sector-specific requirements, with a clear focus on reskilling and upskilling initiatives to ensure workforce adaptability. The growing reliance on digital platforms, AI-driven recruitment tools, and data-based decision-making also marks a shift towards efficiency and innovation in hiring practices, allowing employers to streamline candidate sourcing while addressing skills mismatches.
However, despite these advancements, the delayed pace of recovery remains evident. Many businesses continue to operate cautiously, prioritizing stability over aggressive expansion. This has translated into slower job creation in some industries, heightened competition for available roles, and more stringent hiring criteria. For job seekers, this underscores the importance of flexibility, continuous learning, and aligning personal skill sets with emerging labor market needs. For employers, it reinforces the need to balance short-term workforce requirements with long-term talent pipeline strategies.
Looking ahead, Finland’s recruitment market will likely depend on several key drivers: government policies to boost labor participation, targeted investment in education and vocational training, and proactive measures to attract and retain international professionals. If these efforts are effectively aligned, Finland has the potential to overcome its demographic challenges and establish a more resilient and future-oriented labor market.
In conclusion, the hiring and recruitment landscape in Finland in 2025 can best be described as a transitional phase marked by delayed recovery yet underscored by structural transformation. Employers, policymakers, and job seekers alike must recognize that the labor market is no longer defined by traditional patterns but by adaptability, innovation, and inclusivity. Those who can embrace these shifts will be best positioned to thrive in the coming years, making Finland a competitive and forward-looking destination for both businesses and professionals.
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People Also Ask
What are the key hiring trends in Finland for 2025?
Hiring in Finland is marked by slow recovery, skill shortages, and structural changes in industries like tech, healthcare, and green energy.
Why is Finland experiencing delayed hiring recovery in 2025?
The delayed recovery stems from economic slowdown, labor mismatches, and cautious employer hiring strategies amid market uncertainty.
Which industries are driving recruitment growth in Finland in 2025?
Technology, healthcare, renewable energy, and logistics are leading recruitment growth as Finland adapts to global and digital transformation.
What structural changes are shaping Finland’s job market in 2025?
Automation, remote work adoption, and the green transition are driving major structural changes across Finland’s recruitment landscape.
How is the Finnish labor shortage affecting hiring in 2025?
Talent shortages in IT, engineering, and healthcare are pressuring employers to rethink recruitment, upskilling, and global hiring strategies.
Is remote work still popular in Finland in 2025?
Yes, remote and hybrid work remain central to Finland’s labor market, with companies using them to attract and retain skilled professionals.
What skills are most in demand in Finland in 2025?
Digital expertise, AI, data analysis, healthcare skills, and sustainability-focused roles are highly sought-after in the Finnish job market.
How is Finland addressing the talent shortage in 2025?
Finland is tackling talent shortages by upskilling workers, investing in education, and attracting international professionals.
What role does technology play in Finnish recruitment in 2025?
AI-driven recruitment tools, data analytics, and automation are streamlining hiring and improving candidate-employer matches.
How is economic recovery influencing Finland’s recruitment sector?
The slow economic rebound has made employers cautious, leading to fewer job postings but more focus on long-term workforce strategies.
Are international workers in high demand in Finland in 2025?
Yes, international talent is increasingly vital, particularly in IT, healthcare, and engineering where local supply cannot meet demand.
What impact does Finland’s aging population have on hiring?
An aging workforce is intensifying labor shortages, especially in healthcare and education, prompting reforms and global recruitment.
How are Finnish companies adapting recruitment strategies in 2025?
Employers are focusing on flexible work models, employer branding, and digital recruitment platforms to remain competitive.
What are the biggest hiring challenges in Finland in 2025?
Major challenges include skill mismatches, talent shortages, an aging workforce, and adapting to global economic uncertainty.
How is AI influencing recruitment in Finland in 2025?
AI is improving candidate sourcing, automating repetitive tasks, and enabling data-driven hiring decisions across industries.
Which sectors face the toughest hiring difficulties in Finland in 2025?
IT, healthcare, engineering, and skilled trades face the greatest difficulties due to limited local talent supply and rising demand.
How does Finland’s education system impact recruitment in 2025?
While strong, Finland’s education system is adapting slowly to digital and green economy needs, creating skill gaps in key areas.
What role does sustainability play in Finland’s recruitment market?
Sustainability drives new jobs in renewable energy, circular economy, and green tech, influencing recruitment strategies.
Are Finnish employers investing more in upskilling in 2025?
Yes, upskilling and reskilling are priorities as companies aim to close skill gaps and prepare workers for digital transformation.
How does government policy affect hiring in Finland in 2025?
Policies supporting immigration, digital innovation, and workforce training are shaping recruitment and easing talent shortages.
Is Finland an attractive destination for foreign professionals in 2025?
Yes, Finland attracts foreign talent with its high living standards, remote work opportunities, and demand for global expertise.
How are recruitment agencies supporting hiring in Finland in 2025?
Agencies are bridging talent gaps by sourcing international professionals and offering specialized recruitment solutions.
What impact does digital transformation have on Finland’s workforce?
Digital transformation is creating demand for IT, cybersecurity, and AI specialists while reshaping traditional roles.
How is Finland competing for global talent in 2025?
Finland competes by offering work-life balance, strong innovation ecosystems, and incentives for international professionals.
What hiring strategies are most effective in Finland in 2025?
Flexible work, digital recruitment platforms, global hiring, and investment in employee development prove most effective.
How has recruitment in Finland evolved post-pandemic?
Recruitment has shifted to hybrid models, digital tools, and global sourcing while focusing more on long-term resilience.
Are salaries rising in Finland in 2025 due to talent shortages?
Yes, competition for top talent is driving wage increases, particularly in tech, healthcare, and green economy sectors.
How important is employer branding in Finland’s recruitment market?
Employer branding is crucial, with companies showcasing culture, flexibility, and innovation to attract scarce talent.
What is the outlook for Finland’s hiring market beyond 2025?
The outlook suggests gradual recovery, more reliance on international workers, and continued structural transformation.
Sources
European Commission – Economy and Finance
Helsinki Times
Bank of Finland Bulletin
State Treasury, Finland
Valtiovarainministeriö
Nucamp
Trading Economics
CEIC Data
Elinkeinoelämän keskusliitto
Reddit
Valtioneuvosto
Statistics Finland
Alma Career
buildData
Photonics Finland
Edstellar
Work in Finland
CEDEFOP – European Union
Dynamic Staffing Services
Fragomen
Zalaris
iSmartRecruit
Theseus
LinkedIn Business Solutions
Upwork
HR Viesti
IDEAS/RePEc
Finnish Centre for Pensions – Eläketurvakeskus
EURES – European Union
Maahanmuuttovirasto
KPMG International
iSchoolConnect
Smith Stone Walters
AtoZ Serwis Plus
