A lack of competence is slowing down the growth of companies in the service sector

Expectations of growth in the number of personnel have decreased significantly in the service and commerce sector companies. 26 per cent of all respondents predicted growth, while 44 per cent of all respondents to the previous study in 2022 predicted growth in the amount of labour.

Recruiting competent labour has become temporarily easier as a result of the increased availability of labour due to the general economic cycle. This is expected to become more difficult again in the future as consumer confidence strengthens and demand for services recovers. The most common challenge in recruitment was the mismatch between competence and the needs of the company. Its share has continued to grow and was now 67 per cent.

Companies in the service sectors need experts with the ability and willingness to develop their competence, good problem-solving and social skills, and the ability to think creatively. The significance of customer orientation, leadership and coaching skills, as well as sales and marketing expertise, increased from the previous study conducted in 2022. The language skills required for the position emerged as a new competence need.

It is hoped that further training and cooperation with educational institutions will address the competence gap

The role of cooperation with educational institutions and further training is seen as significant in meeting the competence needs of companies. There is a need for additional training and cooperation between companies and educational institutions in recruiting new experts and in training related to digital skills and customer service.

In recent years, more and more training responsibility has been transferred from educational institutions to companies, and some respondents find this to be a challenge. The respondents hope that educational institutions would take more responsibility for teaching the basic skills needed in working life and that companies would receive support for training costs.

”Cooperation with educational institutions is very important for companies, as educational institutions train competent future experts for companies. Close dialogue between companies and educational institutions ensures that our customers will continue to be served by competent employees who, in addition to their social and customer service skills, have the ability and desire to develop both their own competence and the operations of companies,” says Timo Lappi, Managing Director of the Finnish Hospitality Association MaRa.

Companies want to utilise accumulated competence – the share of employees over 55 years old is growing

The number of older employees aged 55 and over has increased in the service sectors in recent years, which is also reflected in the results of the skill survey. Half of companies seek to identify the competence of ageing employees and use it in the planning of work tasks. Approximately a third of companies pass on the accumulated competence to younger employees through mentoring programmes and training, for example. Nearly 30 per cent of companies use measures that prevent age discrimination in recruitment.

”It is important to be able to better utilise the work input of ageing employees in the service sectors. Even though the acute labour shortage has now eased for a while, the challenge created by the declining age groups of people of working age has not disappeared,” says Jaana Kurjenoja, Chief Economist of the Finnish Commerce Federation.

Adjusting working hours to the needs of the ageing employees is common in service companies. 42 per cent of the companies that responded to the skill survey report that they utilise pensioners in part-time work, and 22 per cent are considering doing so.

Language skills as an obstacle to international recruitment

According to the study, the share of labour with a foreign background has remained at the previous level, but there are still significant obstacles to its utilisation. Language skills are seen as the biggest challenge. In addition, the lack of competence, the employer’s willingness to hire employees with a foreign background and customers’ attitudes are significant obstacles. The respondent companies hope for support for language training, the flexibility of work permit processes and the use of competent recruitment partners.

”Foreign experts are vital to companies in the service sectors. Therefore, we must support the abilities of companies to employ them by strengthening multilingual organisations and the willingness of companies to hire experts with developing Finnish language skills. In addition, international higher education programmes must include studies in the official languages of Finland as part of the degree and right from the start of the studies,” says Tatu Rauhamäki, Industrial policy leader of Service Sector Employers Palta.

The availability of international experts and smooth immigration are critical for the service sectors, commerce and Finland as a whole. International experts are needed to fill the competence shortage caused by the ageing population and to enable the growth of service sectors.

The study was conducted by Innolink via a combination of email surveys and telephone interviews in March–May 2025. The target group for the study consisted of the member companies of Service Sector Employers Palta, the Finnish Commerce Federation and the Finnish Hospitality Association MaRa. The study is based on 917 responses. The study was carried out for the third time.

Attachment:

Service sector skill survey 2025

(Only in Finnish)

For further information, please contact:

Jaana Kurjenoja, Chief Economist, Finnish Commerce Federation, tel. +358 40 820 5378, jaana.kurjenoja@kauppa.fi

Tatu Rauhamäki, Industrial policy leader, Service Sector Employers Palta, +358 50 521 2907, tatu.rauhamaki@palta.fi

Timo Lappi, Managing Director, Finnish Hospitality Association MaRa, +358 40 734 5549, timo.lappi@mara.fi