Businesses in Finland raise alarms over adult education support cancellation amid labor shortages

The cancellation of adult education support is raising concerns among businesses already struggling with labor shortages. One such company is Vilpe, a construction firm based in Mustasaari, Ostrobothnia, which employs nearly a hundred people. For them, adult students are essential. CEO Tuomas Saikkonen emphasizes the importance of attracting workers without formal training or those looking to switch careers. “We also employ career switchers and individuals with varying levels of qualifications,” he states.

Similarly, the energy company Hycamite in Kokkola is hiring career changers. HR manager Petra Maunula notes a demand for specialists in technology and natural sciences. Saikkonen believes the changes will diminish workplace flexibility and worries about the future labor supply for regional companies. “People often start in industries without prior education to see if they enjoy the work, and a few years later they pursue studies. This process is now being made more difficult,” he laments.

Adult education support, funded through unemployment insurance contributions from both employers and employees, is not included in the state budget. Therefore, its cancellation does not result in immediate savings for the government, unless legislation is amended. Last year, this support amounted to around €190 million, with approximately €4 million allocated to entrepreneurs.

The labor shortage is currently affecting all of Finland, with significant gaps in industries, transport, and energy. Saikkonen expresses urgency as his company faces challenges recruiting specialized engineers, such as those skilled in IoT. While he raises concerns about the government’s contradictory messages regarding support for industry, some, like Juhana Brotherus from Suomen Yrittäjät, believe the impact will be limited to individual businesses.