This chapter begins by introducing the OECD project on vocational education and training (VET) and the green transition, highlighting the relevance of this topics and key terms and definitions. It then outlines Finland’s environmental policies and goals, followed by a discussion on the skills needed to achieve these ambitious objectives. In this context, the chapter also examines Finland’s education system, with a particular emphasis on VET and its role in delivering the skills and competencies that are essential for the green transition.
Vocational Education and Training and the Green Transition in Finland
Abstract
The green sector is a vital and expanding component of Finland’s economy, encompassing industries and initiatives that promote environmental sustainability, resource efficiency, and low-carbon solutions. For example in 2023 bioeconomy – the part of the economy that uses renewable biological resources, particularly from forests, for producing energy, materials, and chemicals, generated a value added of EUR 29.3 billion, accounting for 12% of Finland’s total value added (Natural Resources Institute Finland (LUKE), 2024[1]). The sector employed approximately 300 000 people, representing about 11% of the national workforce. The country aims to double the value added of the bioeconomy by 2035, targeting an increase from 13% to 26% of GDP (Finnish Government, 2022[2]).
The green transition has implications for skill needs
Measures to combat climate change by reducing carbon emissions have significant implications for labour markets and skills. Stricter environmental policies and green financial incentives can reduce reliance on fossil fuels, lower greenhouse gas emissions, and support renewable energy development. A skilled workforce is crucial to utilising greener technologies, adopting sustainable practices, and innovating within evolving industries. For instance, new regulations require workers who can monitor compliance, redesign production processes, and drive innovation to meet environmental goals.
Green policies may reduce employment in high-emission sectors such as oil and gas, while creating jobs in renewable energy and other sustainable industries. In many sectors, the impact of the green transition will be more nuanced, requiring workers to adapt to new technologies and practices. For example, car mechanics must now acquire skills to work on both electric and traditionally powered vehicles as demand shifts towards sustainable consumption.
All of these changes highlight the need for education and training systems to quickly adapt to shifting labour market demands. They must also ensure equity, particularly for vulnerable groups like older workers, by equipping them with relevant skills.
Alongside new skills, learners will need to develop greener values that will not only be important in the labour market, but in society more broadly. While recognising the challenges involved in teaching values, such competences will need to be recognised in education and training curricula, complementing other transversal skills such as problem-solving and critical thinking.
Vocational education and training (VET) is uniquely positioned to support the green transition, bridging the gap between education and the labour market. VET systems must proactively address changing skill needs and foster green innovations by updating curricula to reflect both immediate job requirements and anticipated skill shifts. Teachers and trainers should also receive opportunities to enhance their green awareness to better prepare students for the transition. Additionally, VET systems must be accessible to workers most affected by the transition, providing high-quality upskilling and reskilling opportunities.
The green transition poses challenges for VET in terms of content, design and delivery. But it also brings many opportunities. VET can be a catalyst for the green transition, facilitating knowledge exchange and fostering innovation through the interaction between training providers, employers and students. The OECD project on VET and the green transition aims to support countries with addressing these challenges, see Box 2.1 for more details. This report is one part of the project, focusing on the opportunities and challenges facing Finnish VET in the context of the green transition, and offering tailored policy recommendations.
To support Finland in adapting its VET system to contribute to the green transition and achieve its ambitious environmental goals, this report examines the role of various VET qualifications in this process, and how they are revised and updated. It also assesses teacher preparedness for the green transition and highlights the importance of providing information on green jobs and related training opportunities to both current and prospective learners. Chapters 3-5 explore these issues in depth. Each chapter begins with an overview of the current situation in Finland, highlights the strengths of the Finnish system, and identifies key challenges. Finally, the chapters present policy options that Finland may consider to address these challenges. To provide additional context and insights, the report includes international comparisons and relevant country examples throughout.
The OECD project “VET and the green transition” aims to advise countries on how the green transition impacts VET and how VET systems can adjust to support the green transition, by evaluating existing evidence and completing it with further findings from data and policy analysis. The project was endorsed by the OECD’s Group of National Experts on VET.1 Countries participating in the project include: Canada, Finland and Sweden.
This work is carried out through cross-country data analysis and the collection of relevant policy examples, as well as country studies. All three participating countries contribute to the cross-country policy and data analysis, and Finland has also chosen to conduct a country-specific study.
Cross-country data and policy analysis
The cross-country data analysis explores labour force survey data and job vacancy data to fill the knowledge gap in relation to VET and the green transition, to facilitate comparison across countries and promote peer learning. It looks at questions such as i) what type of green occupations are held by VET graduates? ii) does access to green occupations differ between graduates from different levels of VET programmes, and between VET and higher education graduates? iii) how effectively do different VET programmes prepare for VET occupations? The results from the data analyses are presented in dedicated OECD working papers.
Relevant country policies and practices were reviewed through desk-based research. An OECD policy questionnaire on VET and the green transition circulated to all countries participating in the OECD’s Group of National Experts on VET provided further information on countries VET systems and specific policies. The questionnaire collected information on topics such as: how countries update their VET qualifications to keep pace with changes introduced by the green transition; how the green transition is incorporated into career guidance services; how sustainability issues are integrated into VET programmes. Insights from the questionnaire will feature in a set of OECD policy papers resulting from this project. Several of the examples presented in this report on Finland also come from this policy questionnaire.
Country review of Finland
This country-specific study examines the challenges and opportunities the green transition presents for Finland’s VET system. It provides tailored recommendations to enhance VET's role in advancing the green transition. It combines national and cross-country data and policy analysis with fieldwork, including visits and interviews with stakeholders (such as ministries and regional administration representatives, VET institutions, social partners, researchers and students). The first visit to Finland took place in September 2023, followed by online interviews with key stakeholders in September 2024. Findings from this country-specific study of Finland are presented in this report.
1. The Group of National Experts on Vocational Education and Training (GNE on VET) was established as a subsidiary body of the Education Policy Committee in April 2007. The Group shall assist the Education Policy Committee (EDPC) in helping Members and Partners to develop effective, efficient and evidence-based policies for Vocational Education and Training and Adult Learning through its continuing cross-national thematic work and country studies.
Green jobs and skills for the green transition take many shapes and forms
According to the United Nations, the green transition, or a green/greening economy, is the process of reconfiguring businesses and infrastructure to deliver better returns on investment or natural, human, and economic capital, while at the same time reducing greenhouse gas emissions, extracting, and using fewer natural resources, creating less waste, and reducing social disparities (UNEP; ILO; IOE; ITUC, 2008[3]; Inter-Agency Working Group on Work-Based Learning, 2022[4]).
The green transition drives greater demand for skills and competencies aligned with clean technologies and broader environmental objectives, while reducing the need for skills associated with high-emission activities. Skills (competencies) for the green transition can be understood in the context of labour market needs and evolving job requirements, but also in a broader sense. According to the Inter-Agency Working Group1 on work-based learning (2022[4]) ‘Skills for the green transition’ include skills and competences but also knowledge, abilities, values and attitudes needed to live, work and act in resource-efficient and sustainable economies and societies. They are:
Technical: required to adapt or implement standards, processes, services, products and technologies to protect ecosystems and biodiversity, and to reduce energy, materials and water consumption. Technical skills can be occupation-specific or cross-sectoral. In this report, these technical skills will be referred to as skills for green occupations/jobs (see below for the definition of green occupations/jobs).
Transversal: linked to sustainable thinking and acting, relevant to work (in all economic sectors and occupations) and life. Alternatively referred to as ‘sustainability competences’ in this report.
The development of these two types of skills often requires different policies and for this reason they are addressed separately in this report.
The definition of green occupations/jobs2 adopted in this report, follows the approach adopted in (OECD, 2024[5]; Kuczera, 2025[6]) focusing on the tasks performed by workers and the skills required to perform them. Similarly to many previous studies e.g. (Bowen, Kuralbayeva and Tipoe, 2018[7]; Vona et al., 2018[8]; Rutzer, Niggli and Weder, 2020[9]; OECD, 2024[5]) this approach uses information on the content of jobs drawing on the 2019 version of O*NET to classify occupations as green. O*NET is a comprehensive database developed by the US Department of Labor that uses detailed surveys of workers and inputs from experts in every occupation to document their job characteristics and knowledge requirements.3 Based on their task content occupations have been classified into different categories of “green jobs” depending on how they are impacted by the green transition.
New and emerging green jobs: The green transition results in the creation of new types of jobs. These new occupations could be entirely novel or “born” from an existing occupation. Hydrogen Vehicle Conversion Specialist modifying internal combustion engine vehicles or other machinery to run on hydrogen provides an example of such an occupation.
Green jobs with changing content. These existing occupations experience significant changes in their tasks and skill requirements due to the use of greener technologies and working practices. Workers need to update their skills to adapt. Demand for these occupations may or may not increase. Examples include the occupation of architect, where greening has increased knowledge requirements related to energy efficient materials and construction (Dierdoff et al., 2011[10]). In the original framework these jobs are referred to as “green enhanced skills”.
Green jobs with no change in content but with increasing demand. These existing occupations see employment growth due to green economy activities, but their content and skill requirements remain largely unchanged. This category includes occupations directly impacted by green activities in sectors such as renewable energy, transportation, construction, and manufacturing. Electrical power line installers and repairers are an example.
Jobs in these three categories are jointly referred to as green jobs/occupations. Any job that does not fall within these three categories are considered non-green, which means they are not directly affected by the green transition.
In addition to the above classification of green-driven jobs, jobs can also be labeled as greenhouse gas (GHG)-intensive jobs or high emission to characterise their polluting nature. The definition of GHG-intensive occupations adopted in this study is based on the definition developed in the 2024 OECD Employment Outlook (OECD, 2024[5]) and applied in the cross-country analytical part of the OECD’s “VET and the green transition” project (Kuczera, 2025[6]) (see Box 2.1). Occupations that are intensive in GHG emissions are defined as those occupations that are particularly concentrated in GHG-intensive industries. As the definitions of green-driven and GHG-intensive occupations are based on different criteria, they are not mutually exclusive, i.e. an occupation can be at the same time ‘green driven’ and ‘GHG-intensive’. A power plant operator is an example of such an occupation. It is a GHG-intensive job, as it is highly concentrated in GHG-intensive sectors, but at the same time its content is changing due to the green transition – which also makes it a green job with changing content.
VET graduates often work in green and GHG-intensive jobs
Analysis of labour market data (Kuczera, 2025[6]) indicates that in many countries, VET programmes serve as a gateway for green occupations (see Figure 2.1). In Finland, one in four young adults with an upper-secondary VET qualification as their highest qualification are employed in green occupations. Most green jobs held by VET graduates have experienced increased labour demand or evolved in terms of job content due to the green transition. However, VET graduates are less like to work in new and emerging green jobs, which require more complex analytical skills and are more often filled by workers with higher levels of education. This may be because, in the early stages of developing and implementing new technologies, highly educated workers are often needed. These initial phases are usually followed by a production stage that relies on the technical skills commonly provided through vocational education and training (VET). Additionally, VET graduates remain overrepresented in jobs with high greenhouse gas (GHG) emission.
2014-22, individuals aged below 35
Note: OECD average is unweighted. It excludes Croatia and Romania, which are accession countries. Data for the United Kingdom correspond to the period: 2014-2021. Upper secondary VET includes ISCED 3 and ISCED 4 vocational programmes.
Source: Kuczera, M. (2025[6]), “Vocational education and training (VET) and the green transition: Insights from labour market data”, OECD Social, Employment and Migration Working Papers, No. 327, https://doi.org/10.1787/02b7fcb1-en.
VET programmes are offered across various fields of study, some of which are closely linked to green occupations. Programmes in engineering, manufacturing, construction, agriculture, and natural sciences produce the largest share of graduates working in green jobs (see Figure 2.2). In the remainder of this report, these three fields of study will be considered as directly preparing students for green jobs. Students specialising in these fields of study would often work in the corresponding sectors such as construction, utilities, electricity and gas, manufacturing and agriculture, which together host the majority of green occupations.
These fields of study and the corresponding sectors also account for a large share of GHG intensive jobs. This dual reality highlights that, while VET graduates have opportunities to benefit from the green transition, they risk being left behind unless they are supported in transitioning to cleaner, more sustainable employment.
However, it should be noted that VET graduates from fields of study like ICT and “arts and humanities” also have relatively high shares of green-driven jobs (around 17%), while the sectors related to those fields only have limited green jobs among VET graduates. This may suggest that some of the VET graduates who specialised in these fields may be working outside these sectors, and that broader skills such as sound numeracy, literacy and analytical skills are also needed for the green transition.
Individuals aged below 35, 2014-2022
Note: Based on OECD countries that are also members of the European Union. Data for the United Kingdom correspond to the period: 2014‑2021. Upper secondary VET includes ISCED 3 and ISCED 4 vocational programmes.
Source: Kuczera, M. (2025[6]), “Vocational education and training (VET) and the green transition: Insights from labour market data”, OECD Social, Employment and Migration Working Papers, No. 327, https://doi.org/10.1787/02b7fcb1-en.
Finland is an environmental leader
Finland has one of the most ambitious climate targets in the world, with a legal obligation to reach carbon neutrality by 2035. In comparison, the EU aims to reach carbon neutrality by 2050. The country has been pursuing emissions reductions through renewable energy, energy efficiency, sustainable land use, and climate adaptation strategies. Approximately 80% of greenhouse gases causing global warming result from the production and consumption of energy, including transport. To reduce the greenhouse emission coming from these sources Finland has limited reliance on fossil fuels, invested in nuclear energy, expanded wind generation and other renewable sources of energy. Fossil fuel made up 36% of its total energy supply in 2021, compared to the average of 70% for International Energy Agency (IEA) members. Finland is also becoming more energy efficient. Between 2020 and 2023 its energy consumption decreased by 23%, and the energy related CO2 emissions went down by 38% since 2000 (International Energy Agency (IEA), 2024[11]).
Countries’ ability to competitively export green, technologically sophisticated products is another way to evaluate advancement in the green transition. This capacity is described with the Green Complexity Index (GCI), which provides information about countries’ productive capabilities and industrial structure by making relative comparisons across country export baskets. It helps estimate which countries are likely to be leaders and laggards in the green economy. Countries with a high GCI tend to have significantly higher environmental patenting rates, lower CO2 emissions and more stringent environmental policies – even after taking into account countries’ per capita GDP. Out of 110 countries, Finland ranked 19th on the GCI in 2019. As comparison, Denmark ranked 11th, Sweden 12th, Canada 31st and Norway 49th (Andres et al., 2023[12]; Müller and Eichhammer, 2023[13]).
Finland’s environmental efforts are underpinned by strong national commitments and policies and aligned with broader EU climate objectives. Finland’s environmental policy is shaped by several key strategies and plans, which work in tandem to meet ambitious climate goals while ensuring societal and economic adaptation to a changing environment. Box 2.2 provides a summary of the key components of Finland’s environmental policy.
The most recent version of the Climate Act that entered in force in 2022 sets out the national targets related to climate change. According to the Act, Finland aims to be carbon neutral by 2035. The aim is to achieve greenhouse gas emission reductions of 60% by 2030, 80% by 2040 and 90% but aiming for 95% by 2050 compared to the levels in 1990.
The Act also sets out a planning system for climate policy that consists of various plans and strategies (Ministry of the Environment of Finland, 2024[14]):
Carbon Neutral Finland 2035 - National Climate and Energy Strategy
This medium-term action plan covers all greenhouse gas emissions and removals achieved through carbon sinks (State Treasury Republic of Finland, 2024[15]). The Strategy aims at a 60% reduction in greenhouse gas emissions by 2030 compared to 1990 levels and carbon neutrality by 2035, ensuring that Finland’s final energy consumption comes from at least 51% renewable sources by the same year, and promoting energy efficiency and independence. The Strategy also stresses the importance of a just transition to ensure the changes benefit all social groups and regions.
Specific goals set up by the strategy include:
A shift towards renewable energy sources, such as wind, solar and bioenergy.
Phase-out of coal by 2029 and reduction in fossil fuel dependency.
Electrification of transport, promotion of biofuels, and energy efficiency improvements in buildings.
Efforts to support carbon capture and storage (CCS) technologies.
Commitment to the EU’s Fit for 55 package.
The Finnish Government recently updated its climate and energy plans, submitting them to the European Commission in 2023, with additional revisions in mid-2024 to ensure alignment with EU climate goals (Ministry of Economic Affairs and Employment of Finland, 2024[16]) (Ministry of Economic Affairs and Employment of Finland, 2022[17]).
Medium Term Climate Change Policy Plan (2022)
This Plan has been prepared in parallel with the National Climate and Energy Strategy and is based on common scenario calculations. The Plan also investigates cross-disciplinary themes like regional climate efforts and consumption.
It aims to halve emissions in Finland’s effort-sharing sectors (like transport, agriculture, and waste) by 2030, on the path to achieving carbon neutrality by 2035. Key measures include financial support for households and local governments, subsidies for transitioning from oil heating, incentives for low-emission vehicles, and funding for electric car charging infrastructure. The Plan emphasises a just transition to a fossil-free welfare state, balancing climate actions with fairness and economic security (Ministry of Environment of Finland, 2022[18]).
National Climate Change Adaptation Plan 2030
This Plan focuses on adapting to the impacts of climate change that Finland is already experiencing, such as extreme weather, increased rainfall, and rising temperatures. It enhances the resilience of key sectors like agriculture, infrastructure, health, and water management. It integrates climate adaptation into regional and local planning to ensure that cities and communities are prepared for future climate-related challenges. It stresses the need for public awareness and education initiatives to enhance understanding of climate risks and adaptive behaviours across communities. Furthermore, the plan promotes research and monitoring systems to assess climate impacts and develop new solutions (Ministry of Agriculture and Forestry of Finland, 2024[19]).
Climate Plan for the Land Use Sector
The purpose of this Plan is to promote the reduction of emissions from land use, forestry and agriculture, strengthening removals by carbon sinks and adaptation to climate change, in accordance with the Sustainable Development Goals (Ministry of Agriculture and Forestry of Finland, 2023[20]).
Other initiatives
Finland has developed a national biodiversity strategy that ensures that climate action is balanced with biodiversity conservation, especially in forest management and land use practices.
Finally, a circular economy action plan promotes resource efficiency and the recycling of materials to reduce environmental impact, supporting a transition away from a linear economy.
What skills does Finland need to achieve its ambitious environmental goals?
Achieving environmental goals is expected to transform Finland’s labour market and shift the demand for specific skills. The Carbon Neutral Finland 2035 strategy predicts that pursuing climate and carbon neutrality targets may reduce overall employment, but the effects will vary across sectors. In some fields, new jobs will be created and the content of existing jobs roles will evolve. As a result, part of the workforce will need reskilling and upskilling (Ministry of Economic Affairs and Employment of Finland, 2022[17]). Below are some key examples of areas in which the demand for skilled labour is expected to increase in Finland according to strategy (Ministry of Economic Affairs and Employment of Finland, 2022[17]):
Sustainable Construction: To reduce the carbon footprint of construction, Finland plans to increase the use of wood and other biomaterials. This shift will create, among others, a demand for public sector professionals with specialised knowledge in the procurement of sustainable materials.
Renewable Energy: As part of the green strategy, Finland is prioritising investment in renewable energy, particularly wind power. The industry will need more professionals with expertise in offshore wind power, as well as those responsible for constructing and maintaining infrastructure in challenging conditions, such as icy seas.
Nuclear Energy: Finland is also expanding its nuclear energy production. This will increase the demand for workers, particularly in nuclear waste management, a specialised field that requires advanced skills and safety expertise.
Hydrogen Production: To boost hydrogen production and usage, another key environmental target, Finland will require professionals skilled in developing and adhering to technical safety regulations related to hydrogen technologies.
The provided examples, along with existing evidence, demonstrate that jobs essential for the green transition require a broad range of skills and support various career aspirations.
In Finland, the demand for skilled professionals capable of developing and applying new technologies will be further driven by the planned investments in R&D and clean technology export. Finland has set a target to raise total R&D spending (public and private) to 4% of GDP by 2030, up from 3% in 2021. The majority of this R&D budget is dedicated to advancing low-carbon technologies (Ministry of Economic Affairs and Employment of Finland, 2022[17]). Higher education institutions such as universities and universities of applied science, but also potentially VET institutions offering specialised vocational qualifications will play a crucial role in providing the necessary education and training for these new positions involving cleaner technologies.
However, many green jobs – such as wind turbine technicians, solar panel installers, and nuclear technicians – require strong technical skills but not necessarily university degrees (this includes skills such as radiation detection and safety often taught in nuclear technician programmes, and hydraulics and pneumatics included in wind energy technology programmes). Vocational education and training (VET) programmes are crucial in delivering these practical skills. As discussed above, OECD data analysis shows that upper-secondary VET is the main provider of skilled labour for green jobs with changing content and increasing demand (Kuczera, 2025[6]). This highlights the importance of VET in equipping workers with the necessary skills for the green transition.
Finnish policy strategies explicitly recognise the role of VET in transitioning to clean technologies. For example, the Medium-term Climate Change Policy Plan strategy estimates that stricter regulations on substances like F-gasses in refrigeration and air conditioning will promote adoption of alternative technologies, with initial and further VET qualifications supporting this transition (Ministry of Environment of Finland, 2022[18]).
Finland has a strong education system to support the development of skills for the green transition
To supply the required skills for the green transition, Finland can rely on its strong education and training system and highly skilled adult population.
In Finland, children typically begin their primary education at the age of seven. Upon completion of primary and lower secondary education (lasting nine years), students advance to upper secondary education, where they chose between general and vocational programmes (Ministry of Education and Culture of Finland, 2024[21]). Education in Finland is compulsory until the age of 18 or completion of upper-secondary qualification: either the general upper-secondary (matriculation examination) or the vocational education and training qualification.
The Programme for International Student Assessment (PISA) carried out across OECD economies and many other countries around the world, provides a strong indication of the quality of primary and lower secondary education and how well students are prepared for a transition to the next levels of education. PISA evaluates competences of 15 year olds, which in many countries, including Finland, correspond to the last years of lower secondary education. Finland’s commitment to education excellence is evident in its PISA performance, which is consistently above the OECD average in reading, mathematics, and science (See Figure 2.3).
Note: Countries and economies are ranked in descending order of the mean mathematics score in PISA 2022.
* Caution is required when interpreting estimates because one or more PISA sampling standards were not met.
Source: OECD (2022[22]), PISA 2022 Database (Tables I.B1.2.1, I.B1.2.2, I.B1.2.3, I.B1.4.42, I.B1.4.43, I.B1.5.4, I.B1.5.5 and I.B1.5.6), www.oecd.org/en/data/datasets/pisa-2022-database.html.
However, despite these strong outcomes, concerns have arisen due to Finland’s steadily declining PISA performance (Figure 2.4). Over the past decade, the country has seen the largest drop in mathematics and science scores among OECD countries, and one of the most significant declines in reading. This indicates that the skills of Finnish students approaching upper secondary education have weakened over time.4
Source: OECD (2022[22]), PISA 2022 Database, Tables I.B1.5.4, I.B1.5.5 and I.B1.5.6, www.oecd.org/en/data/datasets/pisa-2022-database.html.
The adult population in Finland possess strong skills to support the green transition. According to the 2023 Programme for the International Assessment of Adult Competencies (PIAAC) survey, Finnish adults aged 16 to 65 rank first in literacy, numeracy and problem solving among the 31 countries that joined the survey. Compared to the previous cycle of PIAAC in 2013, the skills of Finland’s adult population have improved, making it one of the few countries to show progress over the past decade (OECD, 2024[23]).5
VET is an important part of the education and training system, providing skills for the green transition
VET in Finland caters to young and adult learners
In Finland, Vocational Education and Training (VET) is designed to cater to a diverse group of learners, including young individuals who have finished their lower secondary education, young people with other educational background such as those with general upper secondary education, and adults already part of the workforce.
Among new entrants to upper secondary education, nearly 45% of young students apply for vocational education and training (VET), more than in many other OECD countries (OECD, 2023[24]). The choice of the path is based on students’ interests and academic performance. Figure 2.5 shows that since the major 2018 reform of VET in Finland, which established the current system, the enrolment of 16-year-olds in VET has been increasing. Finland has also one of the highest shares of young adults with upper secondary vocational qualifications as their highest qualification among OECD countries (Figure 2.6). While this reflects the relative importance of VET in upper-secondary education in Finland, it could also hint at poor pathways from VET to higher levels of education.
Share of new students 16-year-olds opting for VET education, as compared to those choosing general education
Source: Statistics Finland (2024[25]), Education and Research, https://stat.fi/tup/suoluk/suoluk_koulutus_en.html.
Percentage of 25-34 year-olds by level of educational attainment (highest level attained)
Notes: Upper secondary VET include ISCED level 3 and ISCED level 4 vocational programmes, general upper secondary programmes are at level ISCED 3 (academic orientation), short cycle tertiary correspond to ISCED 5 programmes, and tertiary refer to higher education at ISCED 6 and above.
Source: OECD (2023[24]), Education at a Glance 2023: OECD Indicators, Table A1.3, https://doi.org/10.1787/e13bef63-en.
Completion of upper-secondary education is a universal requirement for entry to higher education (research university or university of applied science [UAS]), with additional prerequisites varying across institutions and programmes. There are 25 UAS in Finland, with 170 775 students registered in 2023, compared to 15 universities with 168 037 students (Statistics Finland, 2024[25]). The UAS size ranges from around 500 to 17 000 students. Many of the UAS campuses are in smaller cities or regions outside of metropolitan hubs. For instance, Metropolia University of Applied Sciences the largest UAS in Finland, has four campuses in Helsinki, Espoo and Vantaa.
Compared to other OECD countries, VET in Finland enrols many adult learners who are upskilling or reskilling (see Figure 2.7). Only 37.5% of learners in upper-secondary or post-secondary non-tertiary VET in Finland are younger than 20, compared to an OECD average of 68.6%.
Enrolment in upper secondary VET, by age
Note: Upper secondary VET include VET programmes classified at ISCED level 3.
Source: OECD (2024[26]), Education and skills, students data (database), OECD Data Explorer, http://data-explorer.oecd.org/s/2eh.
There are three types of VET qualifications in Finland
Finland has around 160 vocational qualifications classified into three groups:
42 Initial Upper Secondary Vocational Qualifications (USVQ)
64 Further Vocational Qualifications (FQV)
54 Specialist Vocational Qualifications (SVQ).
The first two are classified at European Qualifications Framework (EQF) level 4 (and ISCED level 3), while the SVQs are classified at EQF level 5 (ISCED level 4).
The extent of the qualifications is described in competence points. The scope of the USVQ is 180 competence points. There is a slight variation in the scope of FVQ and SVQ, but as a general rule, FVQs have around 150 competence points and SVQs have 180 competence points (UOK, 2017[27]).
These three types of vocational qualifications target different populations and serve different purposes. USVQs provide broad knowledge required for further education and training as well as skills preparing for a specific a profession. FVQs provide skills that meet the needs of the labour market and are more advanced or more specialised than those provided by USVQ. Applicants to FVQ programmes are generally expected to have a relevant work experience aligned with the skills requirements of the desired qualification. Finally, SVQs aim to meet the needs of work life by providing skills and knowledge that are highly advanced or multidisciplinary (European Commission, 2024[28]; UOK, 2017[27]).
Initial vocational qualifications (USVQs) cater to the largest number of students. In 2023 there were 262 788 students in USVQs compared to 59 062 in FVQs and 25 880 in SVQs (Statistics Finland, 2024[25]). USVQs serve mainly young people (see Figure 2.8) Further and specialist VET qualifications are more popular among adults reflecting their retraining and upskilling functions. It is notable that in programmes leading to SVQs more than one in five students is aged 50 or above.
Source: Statistics Finland (2024[25]), Education and Research, https://stat.fi/tup/suoluk/suoluk_koulutus_en.html.
VET provision is modular and flexible
Each qualification is composed of units of qualifications – of which there are approximately 3 000 across all fields. VET qualification units can be vocational or common, as well as compulsory or optional within a full qualification (see Figure 2.9) and they are designed to reflect the skills required in working life and in further education.
At the initial qualification level (USVQs), common components are consistent across all 42 qualifications, and cover essential skills like communication and interaction, mathematics and science, and citizenship. Unlike USVQs, FVQs and SVQs consist of vocational components only (UOK, 2023[29]), reflecting their more targeted nature and the fact that they typically target learners who already have a qualification that has provided them with core knowledge and skills (Finnish National Agency for Education, 2023[30]).
Source: OPH (2019[31]), Vocational qualifications, www.oph.fi/sites/default/files/documents/vocationalqualificationsfinland2019.pdf.
Finland has a competence-based qualification system which means that completion of a qualification is independent of where competencies have been acquired (Finnish National Agency for Education, 2023[30]). For example, the typical duration for USVQs is three years; however, this can be shortened based on individual's circumstances. This also means that the same VET qualification can be acquired through apprenticeship or education and training provided mainly in schools. Regarding this last point, Finland’s approach is similar to that of Estonia and Sweden but differs from Austria and Germany, where apprenticeship and school-based pathways lead to different qualifications and often prepare for distinct professions.
The educational trajectory is constructed upon a Personal Competence Development Plan (PCDP), tailored for each student. The plan is drawn up for each student by a teacher or guidance and career counsellors together with the student and, when applicable, an employer’s representative. This individualised plan serves multiple purposes (Finnish National Agency for Education, 2023[30]):
Recognition of prior learning: The plan identifies and validates the student’s previously acquired competences, regardless of where or how they were obtained, allowing students to focus only on acquiring missing competences.
Tailored learning paths: The plan outlines the specific competences needed for the student’s chosen qualification and how these can be acquired in different learning environments. This flexibility enables students to engage in work-based learning, school-based instruction, online courses, or other alternative learning formats.
Targeted support measures: The PCDP also includes any necessary support services for students with learning difficulties, disabilities, injuries, or illnesses. These may involve adjusted teaching methods, study arrangements, or additional learning support to ensure all students can succeed in their vocational training.
Upon successful completion of all the units outlined in their personal competence development plans, learners are awarded a certificate by the VET provider. This certificate may represent the entire qualification or one or more units of the qualification. This implies that each unit contributes towards the full qualification, and learners can receive recognition for partial completion of a qualification. (Cedefop; Finnish National Agency for Education, 2019[32]).
VET is provided in eight fields of study
VET programmes in Finland are offered across eight broader fields of study (see Figure 2.10), providing students with diverse options tailored to their interests and career aspirations. Fields of study such as engineering, manufacturing, and construction, as well as agriculture, forestry, and fisheries, and natural sciences, mathematics and statistics are particularly relevant for green occupations, as described above. Together they enrol: 34% of students from initial VET programmes (USVQ), 30% of SVQs and 27% of FVQs.
Source: Statistics Finland (2024[25]), Education and Research, https://stat.fi/tup/suoluk/suoluk_koulutus_en.html.
VET qualifications in green related fields of study are associated with relatively high unemployment rates
Unemployment rates for certain VET programmes remain high (Figure 2.11). This is also the case for fields of study that are closely related to the green transition (Kuczera, 2025[6]). For example, 18% of graduates from initial VET (USVQs) in the field of engineering, manufacturing and construction are in unemployment 12 months after graduation. Health and welfare programmes have the lowest unemployment rates. Unemployment rates are typically lower for those who completing a SVQ, probably reflecting that many of the SVQ learners combine employment with studies.
Source: Statistics Finland (2024[25]), Education and Research, https://stat.fi/tup/suoluk/suoluk_koulutus_en.html.
Finland's VET system balances national guidelines and local autonomy
VET providers and social partners are key players in the design and governance of VET
At the national level, the general goals for VET and the qualification structure are defined by the Ministry of Education and Culture. The Finnish National Agency for Education (EDUFI) decides the national requirements of qualifications, detailing the goals and core content of each vocational qualification. The Finnish Education Evaluation Centre (FINEEC) conducts evaluations and supports quality assurance across the sector (OECD, 2024[33]).
The Ministry of Education and Culture grants authorisations to VET providers, determining the fields of education in which they are allowed to provide education and training and their total number of learners. VET providers decide which vocational qualifications and study programmes within the specified fields of education they will offer. Additionally, they decide how these programmes are delivered, adapt content by developing local units, and establish partnerships with social partners and local businesses to address regional needs.
To enhance cost effectiveness VET providers have been encouraged to merge. As a result, the number of VET providers has decreased significantly, from over 300 in 2006 to 135 currently, following a broader trend of consolidation in education since the mid-1990s (European Commission, 2024[28]). The 50 largest providers are responsible for more than 90% of student-years (Finland Ministry of Education and Culture, 2024[34]) (Cedefop; Finnish National Agency for Education, 2019[32]).
Social partners play a key role in Finland’s VET system. Working Life Committees, representing employers, employees, and the education sector, ensure the quality of assessments and competency evaluations, identifying and reporting shortages to the Ministry of Education and Culture. They also participate in the development of the qualification content and how they are provided. The Finnish National Agency for Education appoints up to nine members to each committee, with terms of up to three years. There are 40 working life committees (Finland Ministry of Education and Culture, 2024[34]).
Funding in VET is based on various criteria
Central and local governments in Finland are responsible for financing VET from the national budget. Initial VET is provided at no cost to students, whereas further and specialist qualifications can involve student fees. Currently, the budget and distribution of funds for adult learning (including SVQs and FVQs) are under discussion (Finnish National Agency for Education, 2023[30]).
From 2026 government funding allocated to VET providers will be divided as follows (Finlex, 2024[35]):
Core funding: 50% of the total funding is allocated based on the number of students (full time equivalents) in the previous years.
Performance-based funding: 30% of funding is allocated based on the number of competence points and degrees completed in the year preceding the financial year.
Effectiveness-based funding: 18% of the funding is allocated based on the employment outcomes and transitions to postgraduate studies of those who have completed a degree as well as student feedback and working life feedback.
Student feedback: 1%.
Working life feedback: 1%.
Core and performance funding depend among others on criteria such as fields of study and prior educational attainment of the learner. For example, funding for students who already hold a vocational or higher education qualification is lower than for those without an upper-secondary education or with an academic upper secondary diploma (Finland Ministry of Education and Culture, 2024[34]). As a result of these criteria, further and specialised programmes receive lower funding than initial programmes.
Government reform plans intend to improve VET outcomes and responsiveness to labour market needs
To improve alignment between VET provision and labour market needs, the government has planned a series of reforms (Finland Ministry of Education and Culture, 2024[34]). The reform aims to streamline the licensing process, reduce administrative burdens, and enhance financial transparency for VET providers.
To test this new approach, an experimental model will be introduced on 1 January 2026 and will run until the end of 2033. This initiative will grant a maximum of 40 VET providers greater flexibility to quickly adapt programmes to local labour market needs (their licences will be replaced by trial licences for a fixed period) and simplify administrative procedures for the VET providers.
The funding system, as discussed above, will be redesigned to improve programme completion and employment outcomes, with a greater emphasis on individualised student support and the completion of parts of qualifications (micro-qualifications).
If successful, the reform could also enhance VET’s responsiveness to the demands of the green transition. As industries and employers adjust to environmental goals, they face rapidly evolving technologies and shifting skill requirements.
References
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← 1. An informal group of international organisations discussing vocational education and training issues.
← 2. Terms ‘occupation’ and ‘job’ are used interchangeably.
← 3. O*NET is sponsored by the U.S. Department of Labour, Employment and Training Administration. The O*NET database is collected and updated through ongoing surveys of workers in each occupation supplemented in some cases by occupation experts. It describes occupations in terms of the knowledge, skills, and abilities required as well as how the work is performed in terms of tasks, work activities, and other descriptors. Green tasks by occupation were regularly updated by O*NET until 2019.
← 4. The reasons behind the observed declined are multifactor and include school and societal changes. It can be observed that over time the gap in mathematics performance between the top and the bottom 25% of students in terms of socio-economic status widened in Finland, while the average gap across OECD countries remained stable. Also, there has been a significant increase in low-performing students, while the proportion of high-achieving students has remained relatively stable.
← 5. The differing results for Finland in PISA and PIAAC can be explained by the different populations participating in these two surveys. PISA assesses the performance of 15-year-olds, while PIAAC evaluates the skills of the population aged 16 to 65.