Työttömien Keskusjärjestö Demands Reversal of Benefit Cuts as Long-term Unemployment Hits 146,000

According to a press release from Työttömien Keskusjärjestö, official figures show 146,000 people had been unemployed for more than a year at the end of July 2026, up 17,200 (13 percent) from a year earlier. More than 80,000 had been unemployed for over two years, compared with roughly 20,000 in 2009. The increase is stark. The release calls on the government to reverse recent cuts to social security and employment services.

The press release argues the government's social security cuts have failed to deliver the promised 100,000 new jobs and that unemployment has risen despite the economy turning upward.

A Kela survey cited in the release finds 67 percent of basic social assistance recipients feel more anxious because of the cuts, 62 percent have reduced spending on food, and 45 percent report increased social isolation. The number relying on basic social assistance has also grown, adding pressure to services meant to help people back into work.

The release calls for more resources for municipal employment services, saying responsibilities transferred to municipalities were accompanied by cuts to measures such as wage-subsidised work and rehabilitative work activities. It demands those cuts be reversed and the use of employment services expanded where needs are greatest.

One rapid policy change proposed is the restoration of the 500-euro protected amount in unemployment benefits. The release cites a study by the Labour Institute for Economic Research (Laboren), Tampere University and the Government Institute for Economic Research (VATT) showing the protected amount increases part-time work and can help people transition to full-time employment. Restoring the protected amount would be a concrete, quick measure that also responds to rising prices and living costs.

The group wants cuts to STEA grants cancelled, noting civil society organisations use those funds to reach people who fall outside public services and to prevent social exclusion. "It is irresponsible to cut both people's income and the services that help those in difficult situations," the release says. It cites the KEHA employment review for July 2026 and recent Helsingin Sanomat reporting as sources for the figures and survey results.

Tampere organisations have already felt the effects: a Tampere disability group warned of up to 20 job losses after its STEA general grant was cut Tampere disability group's change negotiations, and Pirkanmaa wellbeing services reported a surge in help requests after Kela tightened basic social assistance earlier this year Kela cuts sparked help calls in Pirkanmaa.