Etla report: Finland must triple immigration to save economy

Finland must nearly triple its annual net immigration to stabilize its labor market and public finances, a new report from the ETLA Economic Research institute warns.

The report states that securing enough workers requires a net influx of about 44,000 people each year. The current annual net immigration figure sits at roughly 15,000.

ETLA Research Director Antti Kauhanen described the new target as a very challenging goal, according to YLE.

The recommendation comes as Finland faces a rapidly aging population. The total number of working-age people in the country is already falling.

This demographic shift weakens the national labor supply and threatens the long-term funding of the Finnish welfare state.

The economic impact of immigration depends heavily on why people move to Finland and how well they integrate. Work-based and highly educated immigrants strengthen local employment and tax revenues rapidly.

The report emphasizes that foreign specialists find jobs quickly. Their skills boost company productivity and increase export potential.

In contrast, those arriving for humanitarian reasons or family ties face a slower path to employment. The economic benefits of humanitarian immigration are weaker at first.

However, the report notes that employment rates and income levels for refugees do improve as they spend more time in the country.

To maximize economic benefits, the research emphasizes the need for successful integration policies. Targeted language training, skills recognition, and quick access to the labor market reduce the need for social benefits.

Finland has seen success with individualized integration plans, which increased work income for participants by 47 percent over ten years without requiring extra funding.

While immigration alone cannot solve all the financial challenges of an aging society, the report concludes it is a necessary part of the solution.