This study investigates Finland’s ongoing labour-market reform, concentrating on changes to the unemployment-benefit system and activation policy. It has two objectives: (1) to clarify how the current unemployment-benefit scheme operates, and (2) to trace the recent evolution of activation policy. The findings indicate that the reform is chiefly motivated by a desire to strengthen work incentives and safeguard public finances. Compared with earlier arrangements, the unemployment-benefit system has become less generous in both benefit levels and eligibility, while activation policy is increasingly centred on workfarist instruments. Moreover, since January 2025 the responsibility for delivering employment services has been devolved from the central TE Offices to municipalities, signalling full-scale decentralization of the service infrastructure. Driven unilaterally by the right-wing and far-right coalition, the reform has intensified political and social tensions. In this context, ongoing monitoring is essential to gauge how these changes will reshape Finland’s labour market policies and welfare state system in the years ahead.