Despite facing severe economic stagnation, skyrocketing unemployment rates, and tight public finances, Finland has once again topped the global happiness rankings in this year’s World Happiness Report for the eighth consecutive year, showcasing the remarkable resilience of this Nordic nation.
Finland was formerly renowned for its generous welfare state system, but with an aging population and rising social costs, the government has started to make cuts to this safety net.
Juho-Pekka Palomaa, a 33-year-old former video producer who has been unemployed for 1,000 days, shared with Reuters that he organized a “Potluck” protest on the steps of Parliament on October 30 to commemorate his experience.
“I am grateful that in Finland, there is a safety net and social security that supports me financially… so maybe I am not unhappier than before,” Palomaa said, noting that the government has reduced unemployment benefits but has not touched essential pensions.
Upon closer examination of Finland’s fiscal and employment data, the joy from holding the title of the “world’s happiest” sharply contrasts with the country’s economic challenges:
– High Unemployment Rate:
In October, the unemployment rate rose to 10.3%, reaching its highest level in at least 15 years and ranking among the top in EU countries. The youth unemployment rate for those aged 15-24 is even higher at 22.4%.
– Fiscal Deficit:
Finland is projected to exceed the EU’s 3% budget deficit limit for the next three years, with public debt as a proportion of GDP expected to reach 90% by 2030.
– Welfare Cuts:
The government has begun cutting unemployment benefits, housing subsidies, and some medical facilities to control the growing debt.
According to Finnish welfare agency data, some policies include extending the waiting period for unemployment benefits from 5 days to 7 days and reducing allowances for partially employed individuals.
Another unemployed Finnish individual, Hanna Taimio, expressed, “I genuinely fear for the young people… all these cuts and downgrades are truly frightening.”
Despite worrisome economic data, how can Finns maintain their happiness?
John Helliwell, the founding editor of the World Happiness Report, pointed out that the evaluation of a country’s quality of life depends more on social resilience and the “ability to respond to difficult times in a cooperative and constructive manner.” Finland’s remarkable happiness resilience stems from its unique culture of equality and community support.
As a Finn, Palomaa deeply appreciates his country’s culture of equality, which has provided crucial non-material support for him during unemployment. He cited Helsinki’s free public saunas as an example: “Saunas are such an equal place for everyone… (so much so) that you cannot judge someone’s occupation or status based on their appearance.”
Furthermore, the collaborative resilience of Finnish society has empowered him. When Palomaa openly shared his 1,000 days of unemployment on social media, he received a million views and numerous suggestions. This surge of community empathy turned his initially critical “Potluck” protest against policies into a celebration filled with collective support.
He remarked, “This moment belongs to me.”