Kyongjun Kwak
OECD

3. Enriching human capital with more foreign talent
Copy link to 3. Enriching human capital with more foreign talentAbstract
Finland’s future prosperity depends on increasing skills and attracting and retaining high-skilled foreign workers can complement domestic high-skilled labour. Amidst skill shortages, an ageing population and a prolonged productivity slowdown, high-skilled immigrants will play a vital role in driving innovation and realising Finland’s potential in the green industrial transition and digitalisation. Government initiatives, such as the Talent Boost Programme and streamlined residence permit processes, provide a solid foundation for recruiting skilled talent. However, persistent barriers, including restrictive language requirements, limited internship opportunities and professional networks for foreign students and insufficient integration support, continue to hinder the full participation and retention of foreign workers. Targeted reforms to enhance Finland’s global competitiveness should focus on expanding language programmes, increasing internship opportunities for foreign students, and supporting long-term career development. Integration efforts must also prioritise a better transition to the regular Finnish curriculum for immigrant children, robust anti-discrimination measures and tailored social programmes.
3.1. Finland can strengthen its competitiveness by attracting more foreign talent
Copy link to 3.1. Finland can strengthen its competitiveness by attracting more foreign talentFinland needs to upskill the workforce to address current and future skill shortages in various sectors, particularly for the green transition, and boost productivity growth that has slowed markedly (Chapter 1). Attracting and retaining skilled immigrants can complement domestic labour in achieving these goals. High-skilled immigrants contribute substantially to innovation and labour productivity by introducing new knowledge and ideas, and their expertise in fields such as information and communication technology (ICT), healthcare and engineering is essential to improving efficiency and competitiveness (Finnish Productivity Board, 2023). Recent research shows that skilled immigration positively affects firm performance with immigrant inventors contributing a significant share of patents, boosting process and product innovation, and generating positive spillover effects (Kauhanen and DeVaro, 2024; Maczulskij, 2025). In 2021, immigrant inventors were involved in 60% of Finnish patents (Koski, 2024). However, like other Nordic countries, skilled immigrants in Finland often face challenges in securing and retaining employment. Addressing these barriers, such as language requirements, is essential to attract and fully harness the potential of high-skilled immigrants in Finland.
Demographic shifts further underscore the need for a proactive immigration policy. Decreasing birth rates and an ageing population raise the challenge for Finland’s labour force of meeting the demands of the economy and the generous social welfare system. The fertility rate fell from 1.9 in 2010 to 1.3 in 2023, while the native-born working age population (ages 20-64) decreased by about 10% between 2010 and 2023 (Figure 3.1). Conversely, the share of the foreign-born working age population increased from 6.2% to 13.6% during this period, offsetting the reduction in the native-born population.
Figure 3.1. The foreign-born share of the working age population in Finland has risen
Copy link to Figure 3.1. The foreign-born share of the working age population in Finland has risenWorking age population, 20-64 years old
In line with a post-Covid surge in migration to advanced OECD countries, driven in part by strong labour demand (OECD, 2024a), migration to Finland has recently increased. A significant inflow of refugees due to Russia’s illegal war of aggression against Ukraine has also contributed to the rise. The upward revision of national population projections by Statistics Finland in October 2024 extends recent trends, assuming net gains of 45 000 immigrants in 2025 and 40 000 annually from 2026. However, the trend remains uncertain (Chapter 1), and the share of high-skilled migrants within this inflow is even more so. Both total net inward migration and the share of high skilled migrants are particularly sensitive to policy settings and the business cycle (OECD, 2023). In this chapter, the term 'foreign talent' refers to all foreign nationals, including both European Union (EU)/European Economic Area (EEA) and non-EU/EEA citizens, unless otherwise specified.
This chapter examines how Finland can enhance its attractiveness to high-skilled foreign workers to address pressing labour market needs, foster sustainable economic growth and realise Finland’s potential in the green industrial transition (Chapter 4). As global competition for skilled talent intensifies, Finland faces the challenge of keeping pace with countries actively improving their recruitment and retention strategies. While the government recognises the importance of foreign experts and students, further efforts are needed to implement comprehensive policies that address existing gaps.
3.2. Finland has made progress in attracting foreign talent
Copy link to 3.2. Finland has made progress in attracting foreign talentImmigration to Finland has almost tripled in recent years (Figure 3.2). In 2023, Ukraine and Russia accounted for 36.8% of total immigration, excluding immigrants with a Finnish background, partly reflecting a refugee wave. The top three Asian source countries – the Philippines, Sri Lanka and India – together accounted for 14.9% of total immigration. Meanwhile, immigration from Estonia has declined, partly reflecting subdued activity in the construction sector, which traditionally employs many Estonian workers. According to the International Labour Organization (ILO), the high-skilled accounted for 23.5% of the employed foreign-born population inflow to Finland in 2021, similar to Norway (25%) and Denmark (23.1%). Public perception of immigrants in Finland, as in other Nordic countries, is relatively favourable compared to other OECD countries, with high expectations for their positive economic contributions (Figure 3.3). The positive trend reflects Finland's relative attractiveness as a destination for highly educated workers within the OECD, although slightly less so compared to its Nordic peers (Figure 3.4). Finland's strengths, such as professional growth opportunities and work-life balance, continue to make it appealing to foreign professionals.
Figure 3.2. Immigration to Finland has increased
Copy link to Figure 3.2. Immigration to Finland has increasedImmigration by country of origin
Finland has a strategic and organised approach to attracting migrants and it has taken important measures to improve its appeal as a destination for foreign professionals. The Finnish residence permit process for specialists has been streamlined. In 2021, the previous Finnish government introduced the Roadmap for Education-based and Work-based Immigration 2035, which outlined strategies to attract skilled professionals to Finland, targeting doubling work-based immigration to at least 50 000 per annum by 2030 (Finnish Government, 2021). The roadmap also set a clear target of tripling new foreign students to 15 000 per annum by 2030 and employing 75% of foreign graduates in Finland-based employment. In line with recommendations in the 2020 OECD Survey of Finland (OECD, 2020), the roadmap outlined Finland’s goal of establishing an average processing time of one month for all work- and education-based residence permits, with a two-week expedited track specifically designed for specialists, growth-business entrepreneurs and their family members. The current government has not explicitly adopted this Roadmap and no numerical targets are currently in place, though efforts continue to enhance attractiveness to foreign talent within the Talent Boost Programme. Clear numerical targets could help track progress and assess policy effectiveness.
Figure 3.3. Finland, like the other Nordics, has a relatively positive perception of immigration
Copy link to Figure 3.3. Finland, like the other Nordics, has a relatively positive perception of immigration
Note: Panel A: “Mean score on a scale from 0 (bad) to 10 (good) to the question: “Is [country] made a worse or a better place to live by people coming to live here from other countries?”. Panel B: The question was “Would you say it is generally bad or good for [country]’s economy that people come to live here from other countries?” In both Panel A and B, the questions are asked to native-born 15-year-olds and above.
Source: OECD/European Commission (2023), Indicators of Immigrant Integration 2023: Settling In.
In addition to an efficient residence permitting process, Finland also appears to have high-quality integration policies for immigrants (Solano and Huddleston, 2020). Finland has introduced the National Core Curriculum for Integration Training 2022, aiming to enhance immigrants’ linguistic and societal competencies. It emphasises key areas such as language and communication skills, citizenship and working-life competencies and personalised guidance, including the recognition of prior learning (Finnish National Agency for Education, 2022). These structured efforts reflect Finland’s commitment to fostering inclusion and improving integration outcomes. While these policies point to significant progress, challenges remain, which include increasing long-term career development opportunities, the availability of services for family members and societal receptiveness to immigrants.
Building on these integration efforts, the Talent Boost Programme, launched in 2017 and extended under the current government, plays a pivotal role in the policy framework for promoting work- and education-based immigration. The programme targets both the EU/EEA countries and specific third countries (India, Brazil, Vietnam and the Philippines). Within this programme, Finland has streamlined residence permit processes, provided Finnish and Swedish language support and English-language early childhood education, and enhanced access to basic banking services for international workers and their families (Finnish Government, 2024). While the programme has systematically built the infrastructure and approach to competence-based immigration, reflecting a shift in the national mindset to actively embracing the idea that Finland “wants and needs immigrants” (Hourunranta, 2023), further room for improvement remains. For example, the funding for many operational measures is still project-based, leaving them vulnerable and temporary. Additionally, while targeted efforts in the four non-EU/EEA partner countries have yielded progress, over-reliance on a limited number of source countries would restrict Finland’s ability to tap into a wider global talent pool.
Figure 3.4. Finland is a fairly attractive destination for highly educated workers
Copy link to Figure 3.4. Finland is a fairly attractive destination for highly educated workersTalent attractiveness, highly educated workers, 2023
3.3. Obstacles remain to fully realising the potential of foreign talent
Copy link to 3.3. Obstacles remain to fully realising the potential of foreign talentFinland’s growing sectors such as green energy and ICT highlight the further need for foreign experts. Finland increasingly needs more professionals to realise its green industrial transition (Chapter 4) and digitalisation potential. The ICT sector in Finland has already seen a noticeable increase in foreign-background workers (Figure 3.5). However, recent data from the Finnish Immigration Service (Migri) show applications for specialist work visas dropped by 24% in the first three quarters of 2024 compared to the same period in 2023. This likely reflects general weakness in the labour market but there are also signs of stricter immigration policies and increasing global competition for talent are possibly playing a role.
Indeed, meeting the growing demand for talent in the ICT and green sectors has been made more difficult by the recently proposed change in immigration policy known as the "three-month rule", which is to enter into force around mid-2025. This rule mandates that unemployed immigrants holding residence permits for employment must secure qualifying employment within three months or risk losing their residence permits, although a six-month exception applies to all specialists as well as employees at all skill levels who have resided in Finland for more than two years. The rule is consistent with the EU Single Permit Directive that is to be implemented by May 2026, which sets a minimum standard across EU countries to ensure that unemployed foreign workers have at least three months to find a new job. While Finland is not unique in this respect – Sweden for instance applies a three-month rule – this change may send a negative signal to prospective foreign talent. According to a small-sample survey of high-skilled foreign workers residing in Finland, nearly 90% of foreign workers expressed concerns about the country’s approach, and only 52% would recommend Finland as a place to live and work (Insinööriliitto and TEK, 2024).
Figure 3.5. A relatively high share of foreign-background workers is employed in the ICT sector
Copy link to Figure 3.5. A relatively high share of foreign-background workers is employed in the ICT sectorShare of employed persons aged 20 to 64, by industry and origin, 2023

Note: The sum of all bars within each background category equals 100%. “Foreign background” refers to persons whose parents, or only known parent, were born elsewhere than in Finland, while “Finnish background” refers to those with at least one parent born in Finland.
Source: Statistics Finland; OECD calculations.
A lack of language proficiency remains a major barrier to the successful integration of foreign talent into the Finnish workforce. Data indicates that less than half of immigrants in Finland are proficient in the domestic (Finnish or Swedish) language (Figure 3.6). In practice, many employers require fluency in either Finnish or Swedish, and the inability to speak these domestic languages often prevents foreign talent from securing jobs in their fields of expertise. A recent survey reveals that 60% of Finnish employers view language barriers as a major obstacle to hiring foreign workers, despite the increasing use of English in industries like technology. Research also suggests that language barriers in hiring have been one of the main challenges to the integration of foreign talent (Nshom et al., 2022; Franklin, 2024; Silvasti, 2024).
Foreign students also face hurdles when it comes to finding employment after graduation (Samaeva, 2023). In 2023, Finland recorded 114 100 foreign students from primary school onwards, a doubling since 2014 and a tripling since 2009 (Sivista, 2024). Despite the sharp increase in the number of foreign students including in tertiary education, around one-third of foreign tertiary graduates leave Finland within a year after completing their studies, suggesting that while Finland has a strong appeal, the integration of foreign graduates into the workforce is not as seamless as it could be. Empirical evidence indicates that the higher the degree level, the less likely an international student is to remain in Finland after graduation (Mathies and Karhunen, 2021), pointing to a challenge in retaining highly educated foreign talent.
Alongside their limited language proficiency, foreign students lack professional networks, hindering them from finding internship opportunities during their studies. Foreign students are often even unaware of the importance of internships for finding a job upon graduation in Finland. This lack of early work experience compared to native-born peers hampers their ability to find employment after graduation as internships are essential for building up work-based experience and connections within the local job market. Addressing these challenges is key to improving retention rates of foreign graduates.
Figure 3.6. Finland’s immigrants have low local language proficiency
Copy link to Figure 3.6. Finland’s immigrants have low local language proficiencyAdvanced host-country language proficiency, 15-64 year-old foreign-born, 2021
Finland has implemented a two-year post-graduation job-seeking permit for non-EU/EEA foreign graduates in 2022 as part of the Roadmap, which aligns with the OECD recommendation in the 2022 OECD Survey of Finland (OECD, 2022). Unlike foreign students from the EU/EEA countries, allowed to stay and work in Finland without a residence permit within the EU’s free movement regime, non-EU/EEA students must apply for a post-graduation resident permit (or other relevant permit that they qualify for) to remain in Finland after their graduation. This permit can be applied for within five years following the expiration of their student residence permit, allowing flexibility in job searching, and can be issued more than once for those initially securing temporary employment. Although the two-year limit once granted provides a substantial timeframe for securing employment, and streamlined processes for work-based residence permits help, some foreign graduates may still face challenges in finding suitable work, particularly in a labour market with high unemployment (Chapter 1). Finland should consider targeted complementary support to facilitate their transition into the Finnish workforce.
The Finnish tax relief scheme offers a flat income tax rate of 32% for high-skilled foreign workers and researchers for up to seven years, as against the top income tax rate of 44%. The government reduced the tax rate by 3 percentage points in 2020 and extended the maximum duration of the tax scheme by three years starting from 2024 under the Act on Key Employees. The usage of such tax relief programmes for high-skilled foreign talents is not uncommon within OECD countries (OECD, 2024b; Kauhanen et al., 2024). For example, Denmark offers a more generous 27% flat tax rate for up to seven years, and Iceland and Sweden exempt 25% of the income of some foreign experts from tax (Box 3.1). The relatively higher tax rate in Finland compared to regional peers, alongside the strict income thresholds, could be a consideration for potential foreign talent, particularly early-career professionals. However, trade-offs involved in such tax reliefs, including potential fiscal costs and broader economic effects, need to be carefully evaluated, including the risk that these schemes may contribute to tax competition among countries, leading to a "race to the bottom".
Box 3.1. Comparison of tax relief for foreign migrants in Nordic countries
Copy link to Box 3.1. Comparison of tax relief for foreign migrants in Nordic countriesNordic countries, like some other OECD countries, have implemented a range of tax relief measures for foreign migrants, though their scope and generosity vary.
Table 3.1. Tax relief for foreign experts in Nordic countries
Copy link to Table 3.1. Tax relief for foreign experts in Nordic countriesPanel A. Main eligibility requirements to benefit from tax relief programmes
Country |
Nationality requirement (Foreign / National) |
Income threshold (monthly gross, EUR) |
Skills threshold |
Prior non-residence |
---|---|---|---|---|
Finland |
F |
5 800 |
Expertise and professional experience |
5 years |
Denmark |
F |
9 466 |
Researchers and key employees recruited from abroad |
10 years |
Iceland |
F |
No |
Experts |
3 years |
Norway |
F |
5 150 (ceiling) |
- |
- |
Sweden |
F |
9 620 |
"Expert", "researcher" or "other key person" |
5 years |
Panel B. A flat tax rate or tax exemption on income for migrants
Country |
Year of introduction (* amended) |
Characteristics |
Targeted beneficiaries |
Max. duration |
---|---|---|---|---|
Finland |
1995* |
32% tax rate (35% until 2020) |
High-skilled workers and researchers |
7 years (4 years until 2023) |
Denmark |
1992* |
27% tax rate (32.84% effective) |
High-skilled workers and researchers |
7 years |
Iceland |
2017 |
25% exemption |
Foreign experts |
3 years |
Norway |
2019 |
25% tax rate |
Temporary foreign workers |
1 year |
Sweden |
2001* |
25% exemption |
High income, or “key” foreign experts and researchers |
5 years |
Source: OECD (2024b), Tax relief programmes to attract foreign migrants and returning nationals; OECD calculations.
3.4. Finland should implement further proactive measures to recruit and retain more foreign high-skilled workers
Copy link to 3.4. Finland should implement further proactive measures to recruit and retain more foreign high-skilled workersTo address challenges and enhance its competitiveness in the global talent market, Finland should implement stronger and more targeted policy measures focusing on both recruitment and retention. These measures should aim to: i) strengthen national initiatives and further refine the legal framework; ii) address language barriers across various sectors; iii) increase employment opportunities for foreign students; iv) enhance economic incentives; and v) promote social integration.
3.4.1. Enhancing national initiatives and further improving the legal framework
Finland can strengthen its desirability as a destination for high-skilled foreign workers by reinforcing comprehensive medium- to long-term strategies that address the issues identified in the Roadmap for Education-based and Work-based Immigration 2035 and adapting it to changing circumstances. A cohesive national initiative that clearly communicates Finland's openness and commitment to international talent can counteract restrictive perceptions and attract a broader, more diverse pool of skilled professionals. Explicitly adopting the Roadmap and extending its 2030 targets to 2035 would signal a strong, long-term commitment to fostering work- and education-based immigration. Targeted campaigns focusing on key sectors with current and future skill shortages, such as healthcare, ICT and green industries, could further strengthen Finland’s appeal. These campaigns should showcase Finland’s unique advantages, including its excellent work-life balance, innovation-driven economy and leadership in sustainable industries.
Finland could also benefit from implementing more visible and coordinated marketing efforts to position itself as a top global destination for international talent. The establishment of Work in Finland as a permanent structure during the previous government term has provided the necessary tools to achieve this. Work in Finland offers a joint service package on labour immigration and talent attraction by Business Finland and the Development and Administrative Services Centre (KEHA). Drawing inspiration from countries like Australia, which effectively use branding and global talent campaigns, Finland could develop tailored messaging to highlight opportunities in cutting-edge green technologies, robust healthcare systems and its safe and inclusive society. These efforts could be supported by partnerships with Finnish embassies, diaspora networks and global employers to amplify Finland’s visibility and attract high-skilled workers. Additionally, while partnerships with the four target countries outside the EU/EEA area (Brazil, India, the Philippines and Viet Nam) are valuable, lessons should be drawn from their outcomes. Based on this experience, Finland could re-examine and gradually expand its focus to diversify recruitment sources. Broadening the scope of target countries would reduce reliance on a limited talent pool and create opportunities to engage with untapped regions. Collaboration with educational institutions and businesses in emerging markets could facilitate this diversification.
Sustained public funding for key schemes is essential to ensure their long-term sustainability and effectiveness. While the Talent Boost Programme is allocated permanent budget funding following the creation of Work in Finland, it would be crucial to transition other policy interventions that have delivered positive results from project-based to more stable and permanent funding to provide continuity and minimise uncertainty. Reforms that allow public agencies to draw on fees for resource-intensive and firm-specific activities could also increase the resources available to deliver high-quality, targeted services. These could include arranging job fairs abroad, screening candidates on behalf of employers, offering pre-departure language training, and other post-arrival measures, such as cultural orientation training. While fee-based models are increasingly adopted in OECD countries, Sweden’s KROM (Kundval Rusta och Matcha) programme, where independent providers deliver tailored employment services through outcome-based payments, could serve as a useful benchmark (Langenbucher and Vodopivec, 2022). Establishing a robust monitoring and evaluation framework for these programmes would improve spending efficiency, demonstrate their impact, and secure ongoing political and public support.
Streamlining and simplifying legal immigration processes for foreign professionals and international students is critical to enhancing Finland’s attractiveness. While Finland’s residence permit process for specialists is already fast, continued efforts by the Finnish Immigration Service, such as further automation and user-friendly digital systems, could provide a competitive edge in the global talent market. Recent development and adoption of automated decision-making for students’ residence permit applications (European Migration Network, 2024) is a welcome step. While all work- and study-based residence permit procedures already benefit from partial automation, Finland should continue expanding its use of automation in other applications and the post-decision monitoring process to support smoother transitions into the Finnish workforce.
3.4.2. Reducing language barriers across sectors
Language barriers remain one of the most significant obstacles to the successful integration of foreign talent into the Finnish workforce and society. Finland should adopt a multi-pronged strategy to address these challenges across various sectors. Finnish and Swedish language training programmes should be expanded and tailored to meet the specific needs of high-skilled professionals. For instance, offering sector-specific language courses for industries such as healthcare, ICT and green energy could enhance the practical usability of language skills in professional settings. Flexible learning options, including online courses, and pre-departure language introduction resources, would make these programmes more accessible to foreign workers with demanding schedules. In line with these efforts, the government has committed to improving the availability of workplace-based language training from 2027 onwards, with an annual allocation of EUR 2 million as permanent funding.
Adopting flexible language policies in the workplace can also enhance Finland’s competitiveness in attracting and retaining foreign talent. English is already prevalent in sectors like ICT and green industries. For example, the Chemical Industry Federation of Finland, representing approximately 350 companies, has suggested that relaxing the requirement for Finnish or Swedish language proficiency could significantly ease labour shortages in the sector, given its extensive use of English in practice. Expanding the use of English to other areas with acute skill shortages, such as ICT, could further help address workforce gaps. Providing multilingual work manuals and operational guidelines, incorporating English and other widely spoken languages among immigrant workers, can reduce miscommunication, boost productivity and foster inclusivity. Given that a lack of English proficiency among some employers also poses a barrier to hiring foreign talent, government incentives for multilingual practices and clear employer guidelines can help ensure workplaces are both accessible and effective for a global workforce. Additionally, expanding the availability of English-language resources in government services, healthcare, and education can greatly support the integration of foreign workers and their families.
3.4.3. Providing more employment opportunities for foreign students
Attracting and integrating young international talent remains a promising channel, with the availability of high-quality, English-based courses playing a key role in enhancing Finland’s appeal to foreign students. Recently, tuition fees for students from outside the EU/EEA area have been introduced but it is important that they reflect the full costs (Chapter 2). Institutions should allocate part of these extra revenues toward improving integration efforts. This could include increasing the number of English-taught courses and hiring more English-speaking faculty, which would not only benefit international students but also enhance the English proficiency of domestic students, fostering a more globally competitive workforce.
Low retention rates among foreign students highlight the need for targeted measures to facilitate their transition into the Finnish workforce after graduation. Expanding access to internships and practical training opportunities during the studies can help foreign students gain relevant work experience that build professional skills and networks. Currently, foreign students are allowed to work an average 30 hours a week outside of their studies (excluding credit-earning internships), but more structured internship programmes are needed. Finland should further encourage partnerships with companies, educational institutions and municipalities, particularly in high-demand sectors such as ICT, engineering and green technology. Initiatives like mentorship programmes, employer matching services and job fairs tailored to international students could further strengthen their ability to transition seamlessly from academia to the labour market, drawing on experience in other OECD countries (Box 3.2).
Box 3.2. State-led initiatives to retain international students: the example of Japan
Copy link to Box 3.2. State-led initiatives to retain international students: the example of JapanJapan’s goal for the retention of international students has been translated into the “International Student Employment Promotion Programme” organised by the Ministry of Education, Culture, Sports, Science and Technology (MEXT) since 2017. This initiative aims to support universities, in co-operation with local governments and industries, along three axes of support for international students: Japanese business language skills, practical career education and month-long internships.
Hello Work, the Japanese public employment services, is also involved in this programme, providing career advice and facilitating job matches. As of April 2023, 15 universities participated in the initiative and were granted subsidies from the MEXT to develop a unique programme. For example, Kansai University developed a programme for international students, named the Specialised University Curriculum for Career Empowerment and Societal Supports (SUCCESS). It offers e-learning contents and career seminars with partner companies and Japanese Language Institutions. The Japan Student Services Organisation, a government agency promoting international study, also publishes an annual 80-page guide to job-hunting for international students.
Source: OECD (2024c), Recruiting Immigrant Workers: Japan 2024.
3.4.4. Offering competitive incentives and supporting long-term career development
Competitive economic incentives are crucial for attracting and retaining high-skilled foreign workers. Foreign workers in Finland generally earn around 15% less in hourly wages compared to their Finnish counterparts, except for those in managerial and specialist roles. Aligning economic incentives with Nordic neighbours would help maintain Finland’s competitiveness in recruiting high-skilled workers within the region. Finland could consider loosening the eligibility criteria for tax relief, including for example lowering the income threshold (currently set at a monthly gross income of EUR 5 800) and expanding eligibility to additional groups, such as early-career professionals and those who do not meet the prior non-residence requirement (currently five years). These reforms would position Finland more competitively in the global talent market, supporting higher retention rates of foreign workers, although careful assessment is required to evaluate the potential impact of the tax relief scheme on recruitment and tax revenue.
Supporting long-term career development is equally essential to retaining foreign talent in Finland. To ensure that immigrants are not only integrated into the workforce temporarily but also can build long-term careers, Finland could expand career counselling services, mentorship programmes and sector-specific skill development initiatives that go beyond language training. Facilitating recognition of foreign professional qualifications is a critical part of this process. The recognition procedure normally takes a few months in Finland, with a charge. Faster qualification recognition systems, using automation like Norway (ReferNet Norway and Cedefop, 2024), would allow immigrants to transition more smoothly into roles that match their skills and experience. Additionally, these extra measures would help foreign workers navigate career transitions, build professional networks, and access skill enhancement opportunities. By prioritising career development and qualifications recognition, Finland can boost labour productivity while improving the job satisfaction and retention rates of foreign workers. Moreover, facilitating the recognition of foreign degrees and qualifications will also benefit returning Finnish nationals, contributing to Finland’s workforce and productivity.
Increasing job mobility for immigrants is another crucial step in supporting their long-term participation in the Finnish workforce. Some work permit holders require a new work permit to switch jobs outside their sector, creating additional barriers to career advancement. The government’s ongoing initiative to allow work permit holders to take on roles within the same sector and in sectors identified as experiencing labour shortages (OECD, 2024a) is a welcome step in addressing these challenges. Swift implementation of this initiative, with clear and transparent guidelines for both workers and employers, would further enhance the attractiveness and integration of foreign talent.
Granting work permits to accompanying spouses or partners is another critical element of household economic stability and talent retention. Spouses often face limited job opportunities, leaving families financially dependent on a single income. In Finland, spouses have an unrestricted right to work after they receive a residence permit. Speeding up the residence permit process for spouses and organising targeted job fairs for spouses could alleviate this challenge, enabling them to contribute to household finances and integrate into the labour market. Some municipalities are already taking steps in this direction; for example, the City of Helsinki's Spouse Programme provides networking opportunities, job search assistance, and community-building initiatives for accompanying spouses. In addition to financial benefits, this measure would foster a sense of community and belonging for families, supporting their long-term commitment to living and working in Finland.
3.4.5. Enhancing social integration through better education for children
Creating a more inclusive and open environment is crucial to enhancing social receptiveness and supporting the retention of foreign talent. Supporting education for children of migrants plays a pivotal role in successful integration. Despite Finland's reputation for its high-quality education system, concerns persist among immigrant families regarding the Finnish as a Second Language (S2) track. This curriculum, designed to bridge gaps in Finnish language proficiency, often falls short of preparing students for academic success by offering overly simplified content and assessments. The 2022 PISA results reveal that more than 60% of first-generation students with an immigrant background lack the reading skills necessary for further education or workforce participation. Additionally, these students also report higher levels of bullying and feelings of insecurity at school, with one in ten first-generation immigrant students admitting to skipping school at least a few times a month due to safety concerns (Pulkkinen et al., 2024).
The S2 curriculum should not be treated as an alternative track but rather a stepping stone to the regular Finnish curriculum. To address these issues, Finland should develop more effective and inclusive teaching methods, particularly for the S2 curriculum, with a clearly defined path to the mainstream Finnish curriculum. The government should investigate whether reforms of the S2 curriculum are needed to achieve this. Wider support for children of immigrants is also needed, including offering targeted support to help low-performing immigrant students transition smoothly to the regular Finnish curriculum. Moreover, comprehensive support systems, including robust anti-bullying initiatives, are essential to improving academic outcomes and the overall well-being of immigrant-background students.
Finland should also focus on increasing school completion rates among immigrant students. Data show that upper secondary completion rates for students with an immigrant background are around 10% less than those without immigrant background, although the difference is relatively small for vocational programmes (Figure 3.7).
Figure 3.7. Immigrant-background students are less successful at school than non-immigrants, like in other OECD countries
Copy link to Figure 3.7. Immigrant-background students are less successful at school than non-immigrants, like in other OECD countriesCompletion rate of full-time students by the duration plus two years
In 2024, the government decided to introduce an English-language matriculation exam by 2028, a promising step toward enhancing educational opportunities for immigrant-background students. At present, upper secondary school students can only take the matriculation exam in Finnish or Swedish, which poses significant challenges for students who lack proficiency in these languages. The newly introduced reform would enable high schools to offer curricula and exams in English, alleviating a bottleneck faced by many immigrant students after completing basic education. Developing high-quality English-language teaching materials and fostering more qualified teachers proficient in English will be prerequisites for this reform. Additionally, providing targeted orientation and training for immigrant parents would also help understand the Finnish education system and its expectations, as some parents without enough information struggle to ensure school participation and engagement by their children. In Iceland, the City of Reykjavík operates a programme, “Bridge Builders”, which offers immigrant parents detailed information about the Icelandic school system, including the parents’ duties and responsibilities. This includes a dedicated on-line toolbox available in Icelandic, English and Polish, which helps immigrant parents to support their children’s learning (OECD, 2024d).
Further fostering favourable attitudes towards immigrants in Finnish society would reduce discrimination and promote social cohesion. Finland could implement public awareness campaigns focused on promoting diversity and inclusivity. These efforts could include actively combating discrimination in both the workplace and broader society, as well as highlighting the contributions of immigrants to Finland's economy and cultural diversity to counter negative stereotypes and build greater acceptance. Further strengthening and enforcing anti-discrimination policies would also provide tangible protections for immigrants, ensuring equal treatment and opportunities. Collaborating with employers, schools and community organisations to promote intercultural dialogue and understanding could further enhance these efforts, fostering a cohesive and welcoming society that benefits all its members.
Table 3.2. Findings and recommendations
Copy link to Table 3.2. Findings and recommendations
FINDINGS |
RECOMMENDATIONS (key ones in bold) |
---|---|
Enhance national initiatives and further improve the legal framework |
|
Finland requires more high-skilled workers from foreign countries to address current and future skill shortages amidst prolonged productivity slowdowns and demographic challenges. However, the recently proposed stricter immigration rules, known as the “three-month rule,” have raised concerns among current and potential foreign talent. |
Reinforce comprehensive long-term strategies that build on the Roadmap for Education-based and Work-based Immigration 2035 and extend the 2030 numerical targets to 2035. Expand the Talent Boost Programme and transition project-based measures with positive results to more stable and permanent allocations with a robust monitoring and evaluation framework. |
Finland’s work- and education-based residence permit processes have been streamlined, especially for specialists. Further automation and user-friendly digital systems could provide a competitive edge in the global talent market. |
Continue to develop and expand the use of automation in residence permit applications and post-decision monitoring process to support smoother transitions into the Finnish workforce. |
Reduce language barriers across sectors |
|
A lack of language proficiency remains a major obstacle to attraction and integration of foreign talent. While English as a working language is prevalent in some sectors like ICT and green industries, there is potential to use it more in companies with employees from mixed backgrounds. |
Encourage firms to adopt flexible language policies in the workplace. Expand the availability of English-language resources in government services, healthcare and education. |
Provide more employment opportunities for foreign students |
|
Foreign students lack professional networks and internship opportunities during their studies, which significantly hampers their ability to find employment after graduation, contributing to their low retention rates. |
Provide more internship opportunities for foreign students, by supporting targeted mentorship programmes, employer matching services and job fairs, partnering with companies, educational institutions and municipalities. |
Offer competitive incentives and support long-term career development |
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The Finnish tax relief scheme offers a flat income tax rate of 32% for high-skilled foreign workers and researchers for up to seven years. This is higher than in regional peers (Denmark: 27%), and along with strict income thresholds, may deter potential immigrants. |
Align economic incentives with Nordic neighbours to maintain Finland’s competitiveness in recruiting high-skilled workers within the region, while ensuring that tax relief schemes are based on careful assessments of their impact on recruitment and tax revenue. |
Supporting long-term career development is essential to retaining foreign talent in Finland. Recognition of foreign professional qualifications is part of this process, but it normally takes a few months, with a charge. |
Expand career counselling services and enhance sector-specific skill development initiatives targeted at foreign workers. Facilitate the recognition of foreign professional qualifications by developing automated tools like in Norway. |
Enhance social integration with better education for children and less discrimination |
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The 2022 PISA results reveal that more than 60% of first-generation students with an immigrant background lack the reading skills necessary for further education or workforce participation. Additionally, these students also report higher levels of bullying and feelings of insecurity at school. |
Develop more effective and inclusive teaching methods, particularly improving the current Finnish as a Second Language curriculum so it provides a better steppingstone to the regular Finnish curriculum. Offer targeted support to smooth transitions for low-performing immigrant students and prepare robust anti-bullying initiatives. Develop high-quality English-language teaching materials, foster more qualified teachers proficient in English, and provide targeted orientation and training for immigrant parents. |
Public perception of immigrants in Finland, as in other Nordic countries, is relatively favourable compared to other OECD countries, with high expectations for their positive economic contributions. |
Actively combat discrimination in both the workplace and broader society, while highlighting the contributions of immigrants to Finland's economy and cultural diversity to counter negative stereotypes and build greater acceptance. |
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