HELSINKI: Harsh economic headwinds are sending a chill through the world’s happiest country.
But after 1,000 days of unemployment, 33-year-old Juho-Pekka Palomaa hasn’t let Finland’s problems get him down just yet.
Finland is grappling with economic stagnation, rising joblessness and strained public finances, but still managed to secure the title of world’s happiest country for the eighth year in a row in this year’s annual World Happiness Report.
Its success, experts said, is due in no small part to a generous welfare state, but that is now being trimmed back as ministers confront the surging social costs of an aging population.
“I’ve been grateful that in Finland there has been a safety net and social security that have supported me financially. So maybe I’m not more unhappy than I was before,” said Palomaa, who marked his 1,000 days of unemployment with a bring-your-own-food protest on the steps of parliament.
“But I don’t feel there is very much I can do to change my situation,” said the former video producer, who has submitted countless job applications.
While unemployment benefits have been cut, the government has left untouched “almost sacred” pensions, he complained.
Finland’s export-dependent economy has struggled since the phone business of Nokia, once Europe’s most valuable company, collapsed in 2014 after it fumbled the switch to touch-screen smartphones.
Sanctions on neighbouring Russia over its war in Ukraine have also hit exports and tourism, while uncertainty over tariffs and global trade present a further challenge.
The Bank of Finland is forecasting economic growth of 0.3% this year, down from 0.4% in 2024. Unemployment is among the worst in the European Union (EU), at nearly 10%, with the rate more than twice as high at 21.2% among 15 to 24-year-olds.
The EU is expected to decide whether to propose placing Finland in what it calls an “Excessive Deficit Procedure”, after it forecast Finland will have a budget deficit above the 3% EU limit for the next three years. — Reuters
