Only 20 percent of public sector applicants under 30 were employed before seeking a disability pension for mental health reasons, a stark new report from the Finnish pension insurer Keva reveals. The finding highlights a critical failure to connect young Finns to the workforce before severe mental health challenges permanently exclude them. The comprehensive study examined applications for disability pensions and vocational rehabilitation within the public sector from 2019 to 2025, focusing sharply on employment status before and after the claim.
Keva's data paints a troubling picture of a generation at risk. For those under 30 applying for a pension or rehab due to mental health issues, the connection to working life is tenuous at best. A full 80 percent were not in employment prior to their application. The agency notes that for many young applicants, mental health challenges begin long before they ever enter the job market, often stemming from long-term social exclusion or interrupted education.
A Deep Generational Divide
The contrast with older age groups is significant and underscores the unique nature of the youth problem. Among older applicants, between 40 and 60 percent were employed before filing their claim. This suggests a pattern where mental health issues interrupt an established career for older workers, whereas for the young, they prevent a career from ever starting. Janne Salonen, a statistical analyst at Keva, emphasized the need for targeted support. 'For young people, it is crucial to develop so-called low-threshold services in preventive youth and mental health work that support the transition to working life,' Salonen said in the agency's release.
Keva's report shows mental disorders remain the most common reason for applying for a disability pension or rehabilitation in the public sector. While the overall number of applications based on mental health grew from 2015 to 2019, the trend reversed when the coronavirus pandemic began. Application numbers saw a slight increase again in 2024. Notably, the share of young people among those starting a pension for mental health reasons has been growing.
Shifting Patterns in Diagnosis
The specific diagnoses behind these applications are also evolving. Depressive disorders remain the single largest cause in mental health-based claims. However, Keva points out their proportion has decreased in recent years. Meanwhile, the share of applications linked to anxiety and stress-related disorders has risen. This shift may reflect changing societal pressures and diagnostic patterns, pointing to a workplace and social environment where chronic stress is increasingly prevalent.
This trend places immense pressure on Finland's social safety net and long-term economic vitality. A young person entering a disability pension represents decades of lost productivity and potential tax revenue, alongside a lifetime of welfare support. The problem is particularly acute in the public sector, which is a major employer and often seen as a stable career path.
Calls for Early Intervention and Better Coordination
The report strongly advocates for preventative measures and better-coordinated services. Keva stresses that for young people, focus must be directed at the support functions of healthcare, the Social Insurance Institution (Kela), and the employment administration to prevent the transition to a pension. The agency sees a clear need for improved collaboration between pension institutions and Kela. The goal is to ensure young people are guided to the most suitable service, regardless of which agency holds the formal rehabilitation responsibility.
Practical workplace adjustments are also highlighted as key. 'Opportunities for part-time work and combining rehabilitation with work are important,' the report states, suggesting that all-or-nothing approaches to work capacity are failing this demographic. The concept of 'low-threshold' services is central to the proposed solution. These refer to easily accessible, non-stigmatizing support systems that can engage young people early, before a crisis leads to a permanent withdrawal from the labor market.
The findings arrive amid ongoing national debates in Finland about youth wellbeing, educational pressures, and the future sustainability of the welfare state. The Eduskunta has previously discussed increasing resources for school psychologists and youth mental health services, but Keva's data provides hard economic justification for such investments. It frames mental health not just as a personal or healthcare issue, but as a core economic and employment policy challenge.
A Systemic Challenge for Helsinki
For policymakers in Helsinki's government district, the report presents a complex, cross-administrative puzzle. Effective action requires breaking down silos between the Ministry of Social Affairs and Health, the Ministry of Economic Affairs and Employment, and the Ministry of Education and Culture. The report implicitly questions whether current programs are reaching those most at risk of falling into the pension system before their working life begins.
While the data is confined to the public sector, the implications are nationwide. The public sector often sets standards for employment practices and social protection. If it is struggling to integrate young people with mental health challenges, the situation in the private sector may present even greater difficulties. The report does not offer easy solutions but provides a critical evidence base. It clearly shows that without a more proactive, integrated, and youth-focused approach from health services, educational institutions, and employment supports, Finland risks losing a growing portion of a generation before they even clock in for their first shift. Can the system pivot from managing permanent exit to facilitating sustainable entry?