Easing the long years in college is the fact that students aren’t required to pay tuition. The state also provides grants of as much as 500 euros ($670) a month plus meal support and loans of as much as 400 euros a month. While education is a safe haven for students, the economy suffers when they put off joining the job market and don’t have skills the labor market needs, said Hannu Kaseva, an economist at ETLA research institute in Helsinki.
“Our education system is generating more bums for us,” he said by phone. “Think about the wasted investment when just half of all graduates find work suitable for their education.”
Encouraging universities to cooperate with potential employers would reduce the theoretical nature of studies and help bridge the skills gap, he said. The country doesn’t train enough doctors, nurses and dentists, according to the Economy Ministry. Finland has an oversupply of office workers and IT engineers after Nokia’s success making mobile phones in the early 2000s soured, culminating in the sale this year of its flagship handset unit to Microsoft Corp. (MSFT)