“I Feel Like a Failure” – The Impact of Unemployment on Immigrants’ Mental Health in Finland

Unemployment is more than just a financial challenge. For immigrants in Finland, not finding a job can shake professional identity, lower self-esteem, and lead to feelings of exclusion. Drawing on interviews with unemployed immigrants, this article explores the hidden mental health impacts of joblessness, the structural barriers the immigrants face, and how policies and services could better support their well-being and social inclusion.
Lubica Vysna

Project work is rewarding in many ways. The process is often creative, and there is special satisfaction that comes with achieving your goals. What excites me even more, however, is when a project produces unexpected outcomes—like those explored in this article.

Työskentelen asiantuntijana ESR+-rahoitteisessa Aktiivinen toimijuus – yhdenvertaisuutta, syrjimättömyyttä ja osallisuutta edistävät palvelut -hankkeessa. Työssäni keskityn maahan muuttaneiden sosiaalipalveluiden kehittämiseen. Haastatellessani maahan muuttaneita kotoutumisesta, sosiaalipalveluista ja heidän arjestaan Suomessa, yksi teema nousi toistuvasti esiin: työttömyys. Moni puhui paitsi urakatkoksista, myös työttömyyden mielenterveysvaikutuksista, jotka jäävät usein työttömyyskeskustelussa vähemmälle huomiolle.

My interest in this topic is highly personal. Before landing my first full-time job in Finland, I was unemployed for nearly three years. During that time, I studied Finnish and did occasional gig work, but I still felt desperate. For the first time in my life, I doubted whether my efforts would ever pay off. My self-esteem suffered, depression was knocking on my door, and even the balance of my marriage was shaken. Having experienced unemployment’s impact on my mental health firsthand, I understand why access to meaningful work opportunities is crucial.

This article, based on interviews with immigrants in Finland, explores the limitations of job-focused integration and highlights ways employment services could better support immigrants’ well-being.

 

What Research Says about Unemployment and Mental Health

In Finland, immigrant integration policies strongly emphasise labour market participation. This assumes that economic integration equates to social inclusion. It is not only the Finnish state that prioritises economically active immigrants: the migrants themselves are equally motivated to seek employment. However, systemic barriers—including economic conditions, discriminatory hiring practices, and structural obstacles—often prevent immigrants from finding jobs that match their qualifications and aspirations.

Work serves not only as a means of financial support, but also as a source of social acknowledgement. Gross et al. (2020) noted that the prejudices against the unemployed create a vast threat to their self-assurance and can negatively influence their return to the labour market. Such stigma may be especially acute for immigrants, who are often expected to embody the ideal of the “good migrant”—economically productive and independent of social welfare (Hackl, 2020).

The psychological toll of unemployment has been extensively documented in research internationally. A meta-analytic study by Paul and Moser (2009) concluded that an average of 34 percent of unemployed people develop some psychological issues in comparison with 16 percent of the employed ones. These include depression, anxiety, psychological distress, psychosomatic symptoms, worse subjective well-being, and lower self-esteem. Kim and von dem Knesebeck (2016) stated that unemployment and job insecurity are significantly linked to the risk of the development of depression symptoms. Yang et al. (2024) found an association between unemployment and depression, anxiety, bipolar disorder, as well as increased drug use and the onset of eating disorders.

In Finland, Junna et al. (2022) found that unemployment, especially long-term, correlates with increased use of specialised psychiatric care, particularly among men in their 30s. Robertsson et al. (2023) similarly identified unemployment as a key factor in the psychological distress of foreign-born residents. Despite these findings, little research has addressed the mental health consequences of unemployment for immigrants in the Finnish context. However, international studies suggest that migrants may experience similar mental health effects as native populations, though often compounded by precarity, marginalisation, and lack of culturally appropriate services (Koseoglu Ornek et al., 2022; Maheen & King, 2023).

The unemployment rates of immigrants are high in Finland, and immigrants are underrepresented in the mental health services (Castaneda et al., 2020). This is why we need a better insight into the consequences of unemployment on the well-being of the migrant population. Without research data, the challenges faced by unemployed immigrants remain largely invisible in public discourse and policy development.

This article addresses the research gap by presenting qualitative findings from interviews with unemployed, highly educated immigrants in Finland. Rather than focusing on clinical diagnoses, the findings centre around participants’ personal accounts of well-being and distress during joblessness.

 

Theoretical Perspectives on Unemployment

The mental health impact of unemployment can be understood through several theoretical approaches. One influential framework is Jahoda’s (1982) theory oflatent deprivation. Jahoda challenged the traditional focus on income loss alone, highlighting instead the “latent functions” of work—those hidden benefits that employment provides. These include a structured daily routine, regular social contacts outside the family, connection to collective goals, social status and identity, and the opportunity for meaningful activity.

According to Jahoda, losing these functions can be more damaging to mental health than losing income itself. Research shows that unemployed people often experience despair, apathy, loss of energy and ambition, and a sense of meaninglessness. Her theory implies that unemployment affects self-esteem, motivation, and overall mental well-being, but these human costs are often overlooked when policy focuses mainly on economic indicators.

Later research has refined Jahoda’s ideas. Paul and Moser (2009) note that not everyone experiences job loss in the same way. Factors such as satisfaction with previous work or the balance between salary and social benefits can influence the impact. Beck et al. (2025) highlight that underemployment—working below one’s skills, hours, or qualifications—can also harm mental health. Simply having any jobis not automatically better than not having a job at all. Modern work structures, including gig work, remote work, and technological changes like AI, further complicate how work fulfils these latent functions.

Sage (2018) offers an alternative perspective, framing unemployment as a broader process of loss. Beyond income, unemployment may mean losing control, autonomy, respect, status, structure, and skills. Based on interviews with 12 unemployed individuals in England, Sage found that these losses have economic, health, and psychological consequences. Rather than contradicting Jahoda, Sage expands the understanding of how unemployment affects overall well-being.

 

Conducting the Study

Between winter 2024 and spring 2025, I spoke with nine highly educated immigrants about their experiences with services in Finland. Five of them identified as women, four as men. In our conversations, we focused especially on mental health challenges, unemployment, and the sense of losing one’s professional identity. While this was not the original focus of the project, I was curious to learn how people with a migrant background experience integration when unemployed.

All participants were fully informed about the purpose of the interviews and gave their consent. They also reviewed parts of the data analysis, and their feedback was considered in the final article to ensure credibility (see Stenfors et al., 2020).

The participants had at least five years of work experience and were registered as job seekers with the employment services (TE-toimisto, from 1.1.2025 Työvoimapalvelut). They had come to Finland from Asia, the Middle East, and South America, arriving as asylum seekers, refugees, international students, or through family migration.

 

Entering Unemployment: Expectations vs. Reality

All the people I spoke with had established careers before moving to Finland, so finding themselves unemployed upon arrival was a major disappointment. Most had not been fully prepared for the realities of the Finnish labour market before immigrating.

To give some context, Finland’s average unemployment rate between June 2024 and May 2025 was around 8.5 percent (Trading Economics, n.d.), among the highest in the EU (Statista, May 2025). In October 2025, after the interviews had been conducted, it rose to 10,4 percent, making it the highest in the EU (Eurostat, 2026). Statistics Finland further reports that unemployment among people with a migrant background is roughly twice as high as among the native population (Myrskylä, 2023).

Unsurprisingly, all participants described their unemployment experiences as deeply negative. They had expected better opportunities and a smoother continuation of their professional lives. The gap between these expectations and reality forced many to confront how different their lives had become. Regardless of the reasons for them moving to Finland, they had left behind stable jobs and strong professional identities and now had to start over from scratch.

 

When Your Career Vanishes Overnight

Several structural factors contribute to immigrants’ precarious position in the Finnish labour market. Research has identified key barriers such as labour market segmentation, residence permit regulations, language requirements, limited professional networks, and difficulties in recognising foreign qualifications (Khan et al., 2021).

Among the interviewees, the recognition of foreign education and work experience emerged as a particularly painful issue, especially for those in so-called regulated or certified professions. Many described how years, sometimes decades, of education and professional experience were not fully acknowledged. As a result, they were asked to undertake additional studies, often at a much lower level than their existing qualifications.

“I feel quite handicapped… If I must do another master, I would be fine with that. But they are basically sending me back to bachelor studies. After 12 to 15 years invested in my career, it feels like being pushed back to high school level.”

For the participants, work was not just a source of income, it was a core part of their identity. Being a professional, whether a psychologist, specialist, or expert, was as central to their sense of self as being a parent, partner, or friend. Many had spent most of their adult lives building this identity. Losing it, often due to administrative decisions beyond their control, was described as deeply distressing.

“This is who I am… (crying). Psychology can only be studied in Finnish, and that would mean another six to eight years—learning the language, studying again from scratch—just to get a degree I already have and working in a profession that I have already practiced for years. I don’t know what to do anymore.”

Professional identity also involves belonging to a community of peers, not just possessing specific skills or qualifications (Trede et al., 2011). A strong professional identity has been shown to support mental well-being (Toubassi et al., 2022). Immigration, however, often disrupts this sense of belonging. Ties to professional communities in the country of origin are severed, while access to new professional networks in the host country remains limited, especially during unemployment.

As a result, many participants described feelings of exclusion not only from society at large, but also from their own professions. This loss of belonging was linked to declining motivation, sadness, and a growing sense of meaninglessness or even despair.

“Honestly, I feel my life has no meaning right now. I keep asking myself what my future here will be.”

Repeated job rejections further eroded participants’ professional identities. When applications went unanswered and interview invitations failed to materialise, many began to question their own competence and skills. Self-esteem declined, confidence weakened, and feelings of inadequacy intensified.

“My first reaction after rejection is that I am a failure— that my whole life is a failure and I am not good for anything. I must pause and consciously remind myself of everything I’ve achieved.”

 

Isolation and Legal Stress

Participants repeatedly highlighted the social impact of unemployment. Immigrants who are new to Finland often experience both physical and social isolation, which can lead to profound loneliness. Many had previously led active lives with structured daily routines, and the sudden loss of this rhythm was overwhelming and disorienting.

“I don’t have a job. I have nothing to do and very limited opportunities to meet new people. I stay 24 hours in the same place, and it is very stressful.”

Legal pressures add another layer of stress. Finland has recently tightened regulations for foreign residents on work-based permits. Since 11 June 2025, the so-called “3 months/6 months” rule (Ulkomaalaislaki 301/2004) requires foreign workers to secure new employment within three or six months—depending on their professional background and previous contract length—or risk losing their residence permit. This has caused significant anxiety, especially among non-EU nationals and temporary permit holders.

“You need to be worried all the time; it affects your residence permit, and you are stressed about what will happen. Will I have to leave the country?”

Beyond legal worries, bureaucratic hurdles also weigh heavily. Immigrants with limited Finnish language skills face challenges in registering as job seekers and accessing support from employment services. Limited opportunities for personal interaction, delayed responses to emails, and frequent staff changes create uncertainty and frustration. Combined with the difficulties of unemployment itself, these administrative barriers intensify stress.

“As being unemployed, I am worried about having everything in order. I have anxiety because of it. I want to do everything the right way, but I often don’t know what to do.”

This combination of social isolation and legal uncertainty can create a heavy psychological burden, compounding the already challenging experience of unemployment for immigrants.

 

Facing Discrimination: Unseen Barriers in the Job Market

Discrimination in the Finnish job market is a reality many immigrants face. Several studies confirm that recruitment practices often favour native applicants (Koivunen et al., 2015; Liebkind et al., 2016; Ahmad, 2020). Many respondents described experiences that illustrate this harsh reality, such as being “ghosted” after applying for jobs or perceiving the selection process as biased, which they interpreted as signs of structural discrimination.

“I can say there is racism. If there are more people applying for the job, we are not even selected for the interview. They are always giving priority to the Finnish people. Because I don't have the white skin, this together with the lack of language are the biggest challenges to find a good employment.”

One participant even considered changing their names to sound more Finnish, hoping it might improve their chances. After searching for a job for almost 2 years, he was desperate enough to try whatever it takes.

“I do not lack the skills. What I am lacking is the Finnish name. What I am lacking is the white skin.”

Discrimination does not stop at recruitment. Data from Statistics Finland (Jokimäki and Arvonen, 4.11.2024) shows that foreign workers are often paid less than their Finnish counterparts, which can affect job satisfaction and well-being. Research also shows that racial discrimination takes a significant toll on mental health, contributing to depression, anxiety, psychological distress, post-traumatic stress, lower life satisfaction, and increased anger (Pascoe & Smart Richman, 2009; Paradies, 2006; Williams, 2018; Talbert & Ren, 2025).

‘I have gone through so much. The identity crisis, my dignity was compromised in so many ways. Some people don't want to see you beyond your skin colour and appearance, which is very challenging. Of course, if you move to another country, you expect some difference, but it should not be so much, that you start questioning your strengths, your weaknesses, your identity, your dignity…”

Beyond these personal experiences, structural issues make things worse. Employment services operate mainly as bureaucracies. Many staff lack training or resources to address the psychosocial aspects of unemployment.

“No one has ever paid attention to my mental health. I was very depressed after I received the negative decision regarding my diploma recognition. I have asked for help repeatedly, but they just refer me to some online resources. I am on my own and I don't know where to gain help…”

Although employment services are meant to support integration, many immigrants find themselves navigating the system alone, facing both unemployment and discrimination at the same time. Respondents repeatedly stated that no official had ever checked their well-being, considered the impact of unemployment on their mental health, or guided them toward support, such as services offered by NGOs.

 

How Policies and Services Can Support the Well-being of Immigrants

This study shows that unemployment for immigrants in Finland is more than just a lack of work – it affects mental health, well-being, and social life in profound ways. Participants spoke about interrupted careers, lost professional identities, and dropping self-esteem as core struggles. On top of these personal challenges, discrimination, racism, and systemic barriers made the situation even harder.

Integration is often portrayed as a choice that immigrants can make, but in reality, it is largely shaped by the host society (Jarvis & Kirmayer, 2023). Professional skills and qualifications from abroad are frequently overlooked, forcing people to redo education or training, which adds stress and delays career paths. Recognising foreign credentials and work experience could significantly impact integration, including employability and personal well-being.

The experiences of participants align with Jahoda’s (1982) theory of latent deprivation and Sage’s (2018) theory of loss. They described losing daily structure, meaningful activity, social contact, autonomy, dignity, and status – all factors that undermine well-being and make returning to work more difficult. While unemployment benefits in Finland may help financially, they do not make up for these broader social and psychological costs. They have also been drastically cut in recent years, putting about 17 percent of the population at risk of poverty (Statistics Finland, 06.03.2025).

Structural inequalities, limited access to services, and challenges recognising foreign qualifications put immigrants at particular risk. As existing research has shown, social inequities are strongly associated with elevated mental health risks (WHO, 2014). To address these challenges, policy responses must go beyond simply offering jobs. Culturally sensitive mental health services, community-based approaches, and group programs for unemployed immigrants can help combat loneliness, build social connections, and support well-being (Jarvis & Kirmayer, 2023).

Employment service staff should be trained to monitor well-being, offer guidance, and connect immigrants with support resources, including NGOs. Programs that combine job coaching with mental health support, like Germany’s 3for1 intervention program that includes short-term psychotherapy, job coaching and peer support, may be effective (Schlachter et al., 2024).

Future research should involve larger and more diverse samples, using both qualitative and quantitative methods to better understand the interplay between unemployment, mental health, and systemic barriers. Evaluating the effectiveness of support services for unemployed immigrants will be key for shaping evidence-based policy that truly meets people’s needs. We should not forget that behind every statistic is a person whose identity, self-worth and well-being are at stake

 

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