Two leading Finnish experts have issued a stark warning to policymakers: closing Finland’s doors to foreigners will deepen the country’s economic crisis.
Pia Dolivo from the University of Helsinki and Ted Apter from Suomen Ekonomit argue that international talent is not just helpful, but critical for Finland’s survival.
In an op-ed piece published in Helsingin Sanomat, they caution that Finland is a small, remote economy that cannot afford to turn inward during a downturn.
The experts highlight that international workers bring essential networks, customers, and new markets to Finnish companies. This growth allows firms to remain profitable and hire more local Finnish employees. While foreign-owned companies make up only one percent of businesses in Finland, they are economic powerhouses.
These companies generate 23 percent of the private sector’s revenue and employ 16 percent of the workforce. However, 86 percent of these major international firms currently report suffering from a shortage of skilled labor.
They highlight that despite high unemployment numbers, Finland faces a severe disconnect in the labor market. A recent report by the Ministry of Economic Affairs and Employment revealed that 65,000 new jobs were not created in 2023 simply because there was no one to do them.
The authors argue that without these workers, investment money will not come to Finland. Instead, investors will take their money to countries where skilled labor is available.
Innovation Risks
The op-ed stresses that high-skilled immigrants are the engine of Finnish innovation. They give several examples to support their argument. For instance, in 2021, foreign inventors were involved in 60 percent of all patent applications filed by Finns. At the University of Helsinki, 70 percent of the staff involved in innovation come from international backgrounds.
They argue that, currently, 30,000 international students are studying in Finnish universities. However, roughly half of them leave the country after graduating because they cannot find work that matches their degree.
This warning comes at a time of significant tension for immigrants in Finland. The current government has recently introduced stricter immigration policies to cut spending and reduce migration.
These changes include extending the time required to gain citizenship from five years to eight years and tightening rules for work-based residence permits.
While the government aims to prioritize local employment, data suggests the local workforce alone cannot support the economy. Finland is currently recovering from a recession, with the economy lagging behind neighbors like Sweden, where foreign investment is significantly higher.
The authors conclude that competing for talent is also a security issue. Countries like Sweden, Germany, and the UK actively offer benefits to attract researchers and experts.
Dolivo and Apter argue that Finland must do the same to secure its future. As the world becomes more unstable, they summarized their position with a powerful sentiment: “Migration is also national defense.”
