“A vicious cycle of unemployment and weak confidence continues to drag on economic recovery in Finland,” Petri Malinen, chief economist at the Federation of Finnish Enterprises, said in a note. “High unemployment weakens consumer confidence, which reduces the growth of private spending. And weak private spending slows down recovery in the job market.”
The data add to a grim picture for the northernmost member of the euro area, which has been Europe’s worst-performing economy since 2020. Finland has been hurt by weak demand in Europe — most notably in its key export market, Germany — as well as sanctions against neighbouring Russia. Last month, bankruptcies reached the highest level in almost three decades, led by builders.
The headline unemployment rate rose to 9.7% in November from 9.6% in the prior month, the highest since June.
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“The jobless rate is clearly at a higher level than at any time in the 2000s,” said Jukka Appelqvist, chief economist at the Central Chamber of Commerce.
“We must remember that unemployment reacts to economic shifts with a delay,” he said. “That’s why unemployment is often at its highest when the economic cycle is already headed in a better direction.”
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