Finland’s rising youth disability applicants: How to support younger workers

An increasing number of young people in Finland are applying for disability pensions due to mental health issues. Elo’s EVP of workability, Kati Korhonen-Yrjänheikki, highlights the available solutions to support these young workers

Mental health disorders among young people are increasing, leading to higher rates of disability pensions in Finland and globally. Although the overall incidence of new disability pensions has been declining in Finland for a long time, the application rate among those under 30 has increased.

Between 2018 and 2023, the number of disability pension applications received by Elo due to mental health reasons among those under 35 grew by 41 per cent. The largest increase within this group has been among young adults earning between €20,000 and €50,000. This is particularly concerning because the growth is greatest among young people who, on paper, are doing well and are integrated into the workforce.

This increase in young persons’ mental disorders is a significant societal challenge, causing human suffering, costs for companies and society, and potentially leading to social exclusion among young adults. The demographic structure of Finland and other Western countries requires solutions to young people’s mental health problems to ensure a sufficient workforce in the future. Schools, educational institutions, and workplaces play a crucial role in detecting and addressing mental health problems.

Mood disorders, particularly depression, and anxiety diagnoses are prevalent in disability pension applications. Long absences from work due to mental health issues are increasing and pose a significant risk to the future workability of young people.

Behind the challenge are several phenomena. The digital age has changed how we live and interact, leading to loneliness, immobility, and obesity. Increased uncertainty due to factors like climate change, war, and economic instability also contribute to anxiety, particularly among young people. The requirements of working life have increased. The pace of work, the level of demands, and the requirement for continuous learning have increased in working life – this needs to be acknowledged in workplaces. It is very detrimental if workplaces are unclear about what is expected of employees or if there are obstacles to success at work. These issues must be addressed.

We also observe a trend where normal life challenges and unpleasant feelings are increasingly being viewed as mental health problems. Mental health issues must be taken seriously and treated properly, but we must also ensure that young people develop the resilience to withstand life’s hardships.

The good thing is that there are really many ways to strengthen young people’s ability to work and we have a lot of tools at workplaces. Early identification and appropriate treatment of mental health disorders can prevent disability pensions. A balanced workload and early support, if problems arise, are the best medicine.

Supervisory work is crucial for work wellbeing. Clear goals, clear roles, a reasonable amount of work, and a supportive environment are key. Many young people demand too much from themselves, and there may be deficiencies in basic work life skills. Effective early support models and investing in the skills of supervisors are essential. Occupational healthcare and pension providers are key partners for companies in supporting and strengthening employees’ ability to work.



Share Story:

Recent Stories


Podcast: Stepping up to the challenge
In the latest European Pensions podcast, Natalie Tuck talks to PensionsEurope chair, Jerry Moriarty, about his new role and the European pension policy agenda

Podcast: The benefits of private equity in pension fund portfolios
The outbreak of the Covid-19 pandemic, in which stock markets have seen increased volatility, combined with global low interest rates has led to alternative asset classes rising in popularity. Private equity is one of the top runners in this category, and for good reason.

In this podcast, Munich Private Equity Partners Managing Director, Christopher Bär, chats to European Pensions Editor, Natalie Tuck, about the benefits private equity investments can bring to pension fund portfolios and the best approach to take.

Mitigating risk
BNP Paribas Asset Management’s head of pension solutions, Julien Halfon, discusses equity hedging with Laura Blows

Advertisement