Migration's Role in the European Economy: A Finnish Perspective and Solutions for Optimization

The significance of migration in the European economy goes beyond immediate contributions; it involves deep structural changes that affect job markets, social integration, and economic sustainability. Migration comes in different forms, from refugees and asylum seekers to skilled workers and economic refugees, each bringing unique challenges and opportunities. This article focuses on the perspectives and challenges from Finland, a country facing demographic challenges, and proposes solutions to optimize the contributions of migrants.

The Demographic Crisis and Migrant Impact

Finland, like many European nations, faces a concerning demographic crisis. The birth rate is historically low, and the population is aging at an alarming rate. Migrant workers serve as a critical demographic solution, providing a younger workforce and contributing to the economic vitality of the nation. However, the contribution of migrants is multifaceted and is influenced by various factors including labor market discrimination, language proficiency, and education levels.

Challenges in the Finnish Labor Market

According to data from Statistics Finland, the employment rate among newcomers in 2014 was 63.7%, compared to 73.7% among native Finns. This gap highlights significant challenges in the labor market. Only 51.1% of newcomers were employed full-time, while 71.0% of native Finns held full-time positions. Furthermore, many newcomers were employed in temporary or seasonal contracts, indicating a lack of stable job opportunities.

The causes of this disparity are multifaceted. Finnish employers often discriminate based on names, with studies showing that applicants with non-Finnish names are less likely to be invited to job interviews. Another significant factor is language proficiency. A 2015 study revealed that even individuals with native-level language skills were still underrepresented in the labor market, possibly due to the employers' biased attitudes.

Educational background also plays a crucial role. According to Liisa Larja's research, about 20% of newcomers are in jobs that do not correspond to their education. This mismatch is more pronounced among migrants from the Middle East and Africa, where a significant portion lacks upper secondary education, while others are highly educated but still struggle to find suitable employment.

Key Roles of Migrants in the Finnish Labor Market

Migrants play a vital role in various sectors of the Finnish economy. For instance, 24% of newcomers worked in the service sector and trade, with 10% in construction, repair, and manufacture. However, certain professions, such as specialist work, office work, and client service, are underrepresented. This gap points to the need for more inclusive job opportunities that consider the skills and qualifications of migrants.

Several specific professions heavily rely on migration. Almost 40% of cleaners, over 90% of cleaners on cruise ships, and 18% of workers in restaurants and canteens are from abroad. This highlights the need for both the provision of employment opportunities and the integration of these workers into the broader labor market.

Optimizing Migrants’ Contributions

The Finnish government has made significant efforts to integrate migrants and improve their workplace integration. Measures like the three-year government-funded integration program, which emphasizes language learning, have helped, but there is still much to do. Network-based employment is a common practice, where relationships and connections play a crucial role in securing jobs. Additionally, the immigration process for non-EU citizens is slow and bureaucratic, deterring potential migrants.

To better optimize the contributions of migrants, several actions can be taken:

Demolishing Obstacles of Work-Based Immigration: A streamlined process to address the demographic crisis is essential. Many newcomers from non-EU countries have valuable skills and knowledge that could greatly benefit the Finnish economy. Shaping Attitudes of Employers: Employers must be educated on the importance of hiring based on skills and qualifications, not gender or names. Reducing bias in hiring processes can significantly improve the employment rate of newcomers. Developing More Efficient Integration Programs: Combining language studies with training periods can better link the skills of newcomers with the needs of the labor market. This approach should focus on both language and practical skills training. Tackling Racism and Online Harassment: Addressing racism and online attacks is crucial for integrating migrants into Finnish society. Increased police presence online and harsher sanctions for hate speech can help create a more welcoming environment.

These steps are necessary for Finland to fully benefit from the contributions of its migrant population. The challenges are significant, but with consistent effort and commitment, the integration process can be improved, leading to a more prosperous and inclusive society.

Conclusion

The role of migrants in the European economy is substantial and multifaceted. While challenges exist, especially in the Finnish context, there are clear steps that can be taken to optimize their contributions. By addressing discrimination, enhancing language and skill-based training, and tackling systemic issues, Finnish and other European nations can harness the full potential of their migrant populations.

References

Liisa Larja (2019)