The forest industries support approximately 166,500 jobs in Finland, generate €17.4 billion in value added and contribute nearly €4 billion in tax revenue. The forest industries therefore remain a cornerstone of the Finnish economy. These findings are presented in an extensive study published today by KPMG on the economic impact of the forest industries in Finland.
According to the KPMG study, the forest industries have a total economic impact of €50.7 billion in output in Finland. In the study, output is used as a synonym for turnover. The €50.7 billion represents approximately 10 per cent of the combined turnover of all companies operating in Finland. The industry’s impact extends far beyond its own operations through supply chains, investment and consumption generated by employees.
According to the study, the forest industries directly employ around 36,000 people in Finland. In addition, the industry indirectly supports approximately 93,800 jobs through procurement and investment, as well as a further 36,700 jobs through employee consumption. The total employment impact of the forest industries is therefore approximately 166,500 people.
– Nearly one in every 16 people in employment earns their livelihood from the value generated by the forest industries, says Maarit Lindström, Director and Chief Economist at the Finnish Forest Industries Federation.
– The study shows that the forest industries are one of the cornerstones of the Finnish economy. Their impact extends far beyond mill locations, reaching transport, trade, services, and numerous other businesses. The forest industries generate significant economic activity and employment throughout Finland, Maarit Lindström says.
The economic significance of the forest industries is clearly reflected in Finland’s national economy. The industry generates a total of €17.4 billion in value added, which measures its contribution to gross domestic product. This represents 6.2 per cent of Finland’s GDP.
The total tax impact of the forest industries is estimated at nearly €4 billion. This comprises taxes paid directly by the industry as well as tax revenue generated through value chains and consumption. Tax revenue is used to fund public services. The tax impact is equivalent to almost the annual gross earnings of all nurses and practical nurses working in Finland’s wellbeing services counties.
– The indirect impacts of the forest industries are approximately three times greater than their direct impacts. Through value chains, they extend widely across other sectors and the economy as a whole. This distinguishes the forest industries from many other export industries, where direct impacts are generally greater than indirect impacts and are therefore already reflected in industry statistics, Maarit Lindström emphasises.
A significant share of the forest industries’ impact is generated through supply chains. According to the study, the greatest indirect employment impacts are seen in transport and storage, forestry and logging, and wholesale and retail trade.
Key findings:
- Total output of the forest industries in Finland: €50.7 billion
- Value-added impact of the forest industries (GDP impact): €17.4 billion
- Total employment impact of the forest industries: 166,500 people
- Total tax impact of the forest industries: approximately €4.0 billion
KPMG conducted the study on behalf of the Finnish Forest Industries Federation. The study is based on the latest available statistical data from Statistics Finland, the Finnish Tax Administration, and other public authorities, as well as an assessment based on an input-output model. KPMG assessed the impact of the forest industries and the forest sector on output, value added, employment and tax revenue in Finland in 2025. KPMG is one of the world’s largest audit and advisory firms.
