Unemployment for Low-Educated Young Adults in Finland Reaches 23% as Education Levels Decline

Finland, once lauded as a global education leader, is grappling with a significant downturn in educational outcomes, directly impacting its youth labor market. The unemployment rate for young adults aged 25-34 without an upper secondary qualification has surged to 23.1% in 2024, a notable increase from 17% in 2019, positioning Finland among the OECD countries with the highest rates in this demographic. This concerning trend has drawn sharp criticism, with entrepreneur Peter Vesterbacka publicly questioning the nation's educational strategy.

Vesterbacka, known for his role with Angry Birds and the Finest Future initiative, took to social media to highlight the severity of the situation. > "Koulutuksen kärkimaa Suomi romahti – näin suoraan koulutustaso näkyy työttömyytenä," he stated in a recent tweet. He further questioned, "Voisi keskustella suunnitelmatalouden toimivuudesta Suomessa ja koulutuksessa, @okmfi? Aika huonosti näyttäisi toimivan, trendi laskeva jo vuosikausia." (Finland, a top country in education, collapsed – this is how directly the education level is reflected in unemployment. One could discuss the functionality of the planned economy in Finland and in education, @okmfi? It seems to be working quite poorly, with a declining trend for years.) His remarks point to a perceived failure in the centralized planning of the education system.

Data from the Programme for International Student Assessment (PISA) corroborates a sustained decline in Finland's performance across mathematics, reading, and science since 2012. The most recent PISA results from 2022 revealed that 21% of 15-year-olds in Finland lack the functional literacy skills necessary for further study and societal participation, a significant rise from 8.1% in 2009. This widening gap between high and low-achieving students underscores growing educational inequalities and contributes to the challenges faced by young adults entering the workforce.

The Ministry of Education and Culture (OKM) has acknowledged these challenges and implemented various reforms. These include extending compulsory education to 18 years and adjusting higher education funding models to encourage timely degree completion. Additionally, the Ministry plans to introduce tuition fees for non-EU/EEA students in non-Finnish/Swedish degree programs from August 2026, alongside an application fee from August 2025, to bolster university finances and manage application volume.

Despite these efforts, the decline in educational attainment is evident, with the proportion of young adults (25-34) without upper secondary qualifications increasing from 9% to 10% between 2021 and 2024, contrasting with the overall OECD trend. The direct correlation between lower educational attainment and higher unemployment rates emphasizes the urgent need for effective interventions to reverse Finland's educational decline and secure its future workforce.