Finland recorded 348 bankruptcy filings in October, marking a potential turning point in the country's economic landscape. This figure represents just 9 more bankruptcies than the same period last year, according to official statistics.
The total number of person-work years in companies filing for bankruptcy reached 1,190. This shows a decrease of 279 person-work years compared to October of last year.
Economists detect a shift in the October numbers. Bankruptcy numbers had been climbing steadily since January 2021. Meanwhile, employment figures in bankrupt companies have been declining for much longer.
Timo Vesala, chief economist at a leading financial institution, commented on the trend. He noted that while the 12-month rolling sum of bankruptcies remains at peak levels in September, the situation appears to be easing when measured by staffing numbers.
The 12-month rolling annual change in bankruptcy filings stood at 7% in October.
Small service sector companies continue to dominate bankruptcy applications. Trade and construction sectors also face substantial challenges, according to Tiina Toivonen, legislative affairs director at Finland's Entrepreneurs organization. She shared these observations with media on Wednesday.
Despite the ongoing challenges, business outlook shows modest improvement. Nearly half of companies (49%) rate their financial situation as very or fairly good. Specialist sector companies and those employing more than 10 people provide the most optimistic assessments, based on recent survey data.
Toivonen points to encouraging signals from entrepreneur surveys. She suggests the economy may have turned toward improvement. She reminds observers that bankruptcy numbers represent just one economic indicator among many.
Official statistics reveal another positive trend. Finland registered 14,040 new businesses during the third quarter. This represents a 6% increase compared to the same period last year.
This mixed picture reflects Finland's current economic transition. The country faces structural challenges common to Nordic economies, including high labor costs and global market pressures. Yet the stabilization in bankruptcy rates combined with growing business registrations suggests resilience in the Finnish entrepreneurial ecosystem.
International observers should note Finland's robust social safety nets, which help cushion economic transitions. The country's strong education system and innovation infrastructure continue supporting business formation despite economic headwinds. These factors help explain why Finland maintains competitive economic rankings despite periodic challenges.
For expatriates and international investors, these trends indicate both caution and opportunity. The service sector restructuring creates openings for new business models, while established companies in specialist fields show particular strength. The construction sector's difficulties may present buying opportunities for those with longer investment horizons.