Cuts to unemployment benefits in Finland have disproportionately affected part-time workers, with women bearing the brunt of the impact. The number of people receiving earnings-related support has fallen by around 10 percent compared to last year, according to the Federation of Unemployment Funds (YTJ).
End of earnings exemption reduces support eligibility
The decline follows the government’s decision in April 2024 to remove the earnings exemption, which previously allowed jobseekers to earn up to 300 euros per month without deductions from their unemployment benefits. This change has particularly hurt women, who make up a large share of part-time employees, leading many to lose eligibility for income-related unemployment support and transition into full-time unemployment.
Female unemployment rises as part-time roles disappear
During Prime Minister Petteri Orpo‘s (National Coalition Party, NCP) tenure, the total number of unemployed jobseekers has risen by 66,000. According to the Ministry of Economic Affairs and Employment, the share of women among unemployed jobseekers has increased by five percentage points since early 2024.
This sharp rise is linked to the loss of part-time positions—often concentrated in sectors such as retail, healthcare support, and services—where women are overrepresented. The shift from part-time work to unemployment is leaving many women without both income and benefit support.
Finland’s jobless rate remains among Europe’s highest
At approximately 10%, Finland’s unemployment rate is one of the highest in Europe. Unemployment periods have reached record lengths, driven largely by a shortage of available jobs across multiple sectors. The persistence of high unemployment despite fewer layoffs highlights the structural vulnerabilities in Finland’s labour market, particularly for women in part-time and flexible employment.
Overall, the number of people receiving earnings-related benefits fell by six percent in the first half of 2025 compared to the same period in 2024. The YTJ attributes this to fewer layoffs but also to recent legislative reforms that have hit part-time and non-standard workers hardest. As women are more likely to hold such jobs, they are disproportionately affected by the cuts.
