Reduction of work permits in Finland

Reduction of work permits in Finland — trend analysis

In recent years, there have been significant changes in the Finnish labor market due to a decrease in the number of work permits issued to foreign nationals. This process is due to a number of economic, demographic and social factors that have a significant impact on the situation in the country. In this article we will examine these factors in detail and analyze the prospects and new directions of development of the Finnish labor market.

Economic trends and their impact on the labor market

The Finnish economy, like many other countries, is affected by global integration processes and domestic reforms. Although the Finnish economy is quite diversified, it is not immune to external economic shocks.

• According to Statistics Finland, there was a decline in the number of active enterprises in the first quarter of 2024. Between January and March 2024, 12,691 companies ceased operations, which is 20.5% more than in the same period in 2023. This decline in business activity inevitably has a negative impact on the labor market, reducing the demand for labor, including foreign labor.
• On the other hand, statistics also show an increase in the number of new businesses, which can be seen as a positive sign for the labor market and entrepreneurial activity in general. The emergence of new companies creates additional jobs and opens up new employment opportunities, including for foreign specialists.

Demographic changes and challenges for the labor market

Finland, like many other Nordic countries, faces serious demographic challenges related to an ageing population and a decreasing share of working-age citizens. It is projected that by 2030, one in four people in Finland will be over 65 years of age. This leads to increased pressure on the social security and health care system, as well as labor shortages in certain sectors of the economy. The shortage of qualified personnel is particularly acute in areas such as health care and social services. Experts estimate that by 2030 the shortage of workers in these sectors may reach 30,000 people[2]. To solve this problem, it is necessary not only to attract foreign specialists, but also to create conditions for increasing the attractiveness of these professions among the local population, including by improving working conditions and increasing wages.

Immigration policy — challenges and opportunities

In the context of demographic change and skills shortages, Finland's immigration policy is of particular importance. The government is taking steps to simplify work permit procedures in order to attract more foreign professionals.Some progress has been made in recent years in speeding up the processing of work permit applications. However, according to experts, there is still a need to further streamline these procedures in order to make Finland more attractive to foreign workers.
One important aspect of immigration policy is the integration of foreign professionals into Finnish society. Successful adaptation requires not only access to language courses and social support programs, but also an inclusive and friendly environment that promotes intercultural dialogue and mutual understanding.

Finnish labor market — prospects and new directions

Despite the reduction in the number of work permits issued, the Finnish labor market remains attractive for foreign professionals. High wages, quality of life and the country's commitment to innovation and technological progress make Finland an attractive place to work and live. Especially in demand on the Finnish labor market are specialists in information technology, engineering, health care and education. According to the Finnish Ministry of Employment and the Economy, these are the fields in which the largest number of work permits were issued in 2023. Another important trend in the Finnish labor market is the development of flexible forms of employment and remote work. The COVID-19 pandemic has accelerated digital transformation and shown that many jobs can be done remotely without losing efficiency. This opens up new opportunities for foreign professionals who can work for Finnish companies while in their home country.

To summarize:

• The decline in the number of work permits issued in Finland is a reflection of a complex of economic, demographic and social factors. An aging population, skills shortages in certain sectors and economic fluctuations pose challenges to the country's labor market. However, despite these challenges, Finland remains an attractive place for foreign professionals to work and live. The high standard of living, professional development opportunities and innovative environment attract talented professionals from all over the world.
• In order to unlock the full potential of foreign professionals and ensure sustainable development of the labor market, Finland needs to continue reforming its immigration policy, simplifying work permit procedures and creating favorable conditions for the integration of foreign workers into Finnish society. In addition, it is important to develop cooperation between the public and private sector as well as educational institutions to ensure that the skills and competencies of foreign workers are matched to the needs of the labor market.
• In the long term, attracting and retaining foreign talent will play a key role in maintaining the competitiveness of the Finnish economy and ensuring the country's sustainable development in the face of global challenges. Finland has already made significant steps in this direction, but there is still much work to be done. Only through the joint efforts of government, business and society can we create a truly inclusive and prosperous labor market that is attractive to foreign talent and contributes to the country's long-term success.