Recent statistics from Kunta- ja hyvinvointialueyhteisöjen (KT) reveal that municipalities and welfare regions in Finland have faced a significant rise in layoffs, with nearly 1300 individuals dismissed last year, which is double the previous year's estimates. This alarming figure indicates a critical turning point for the sector, as the layoffs typically related to production and economic reasons have been minimal in the municipal and welfare sectors until now. The last time such high numbers were recorded was during the economic downturn of the 1990s.

The KT highlighted that these layoffs are not entirely unexpected, as the financial challenges currently confronting welfare regions have been known for some time. Juho Ruskoaho, KT's chief economist, pointed out that changes in population structure are forcing municipalities to streamline their service networks further. Furthermore, the most significant layoffs have been concentrated in a few welfare regions, and some of the execution processes are still ongoing. Alongside layoffs, approximately 12,200 individuals in welfare regions and 600 in municipalities faced temporary layoffs in 2025, showcasing the extent of the crisis facing public health and welfare services.

This situation raises concerns regarding the future of health and welfare services in Finland, putting pressure on both local authorities and service users. The increased unemployment among welfare-sector workers can lead to a ripple effect on community health services, which already face challenges due to demographic changes. As municipalities brace for further adjustments in their service provisions, there remains an urgent need for strategic planning to mitigate the impact of these layoffs and ensure that essential services are maintained for the population, particularly those relying heavily on welfare services.