Finland needs immigration to grow: Here's how Indians can benefit

Immigration is set to keep Finland's population growing until 2070, according to a new population forecast from Statistics Finland. Released on Friday, this is the most optimistic projection in 17 years, predicting that immigration will help balance the Nordic country's declining birth rate.

 

This comes as positive news for highly skilled Indians looking to move to Europe, as Finland offers residence permits for specialists and the EU Blue Card, depending on job tasks and conditions.

 

The EU Blue Card, a work and residence permit, attracts skilled professionals to EU countries, excluding Denmark and Ireland, particularly in sectors such as engineering, IT, and healthcare.

 

 

Finland's new strategy

 

The Finnish government is taking further steps to retain talent. Permanent residency will soon be granted to those who complete a master’s degree in Finland and pass a Finnish or Swedish language exam.

 

"The government is keen to find ways to ensure these bright minds stay in Finland after they finish their education," Arto Satonen, the Minister of Employment said, acknowledging the talent drain Finland faces.

 

Finland is attracting growing numbers of people for work and study, with new statistics revealing increased interest:

 

Work permits: Over 9,000 people applied for first-time work permits in the first half of 2024, up from 8,800 last year.

Permit renewals: Nearly 11,700 people sought to extend their work permits in early 2024, compared to 9,400 in 2023.

Student permits: Close to 7,000 international students applied to study in Finland in 2024, surpassing the 6,700 from the previous year.

 

These rising numbers signal Finland's growing appeal for both workers and students. Most student applications came from Nepal, Bangladesh, China, India, and Sri Lanka, according to government data.

 

Finland's growing Indian community

 

Indians are exploring European options, with many choosing Finland after facing tighter visa regulations in countries like the US, Canada, and the UK.

 

"Young Indians are increasingly looking to Europe," said Shalini Lambah, chief executive, India, at Migrate World, DUDigital Global. "Study hubs such as Ireland, the Netherlands, and Finland are becoming more attractive to Indian talent."

 

She also noted that the European Union has been encouraging legal migration to address labour shortages, fill skill gaps, and boost economic growth.

 

In 2022, over 11,600 Indians were living in Finland, mainly around Helsinki, contributing to the strengthening ties between the two nations.

 

Support for Indian startups

 

Finland has taken proactive steps to attract Indian startups. Since 2018, around 45 Indian startups have been granted permits to operate in the country. Major cities like Helsinki, Tampere, Turku, and Oulu provide soft landing services to help businesses set up while offering support for relocating employees and their families.

 

Finland invests between EUR 600-700 million annually in research and innovation, which includes startup support. This funding, combined with a corporate tax rate of 20 per cent, is seen as an appealing factor for Indian entrepreneurs.

 

Additionally, Finland’s EU membership provides Indian startups access to the broader European market, positioning it as a gateway for expansion.

 

Finland’s rising income requirements

 

By November 1, 2024, Finland will raise the income requirements for residency permits:

 

Single adults: Must show an income of EUR 14,520 (approximately Rs 13 lakh) annually, up from EUR  12,000.

Students: The monthly income requirement will increase from EUR 560 to EUR 800.

Au pairs: Need to show EUR 340 per month, up from EUR 280.

Working holiday visitors: Need EUR 2,450 for the first three months, up from EUR 2,000.

 

The Finnish government wants to ensure that migrants can support themselves while living in the country. The new figures reflect the cost of living in Helsinki, covering essential expenses such as rent and healthcare.

 

These changes won’t immediately affect current permit holders, but new applicants after November 1 will need to meet the updated requirements.

 

Concerns over new immigration policies

 

Not everyone is happy with the recent developments in Finland’s immigration policies. A survey conducted by two engineering unions in Finland found that 90 per cent of foreign specialists are worried about future immigration plans.

 

The survey by Academic Engineers and Architects in Finland (TEK) and the Union of Professional Engineers revealed that 80 per cent of respondents believe Finland will struggle to attract more international talent.

 

The government's plan to repatriate unemployed foreign workers after six months is seen as too strict by many, potentially deterring skilled professionals from coming to Finland.

 

Large Finnish companies have expressed concerns that this could damage Finland’s international reputation and make it harder to hire foreign talent in the future.

 

Finland’s population forecast: Challenges ahead

 

Finland’s population is projected to grow to 6.5 million by 2070, yet the number of children under 15 is expected to fall from 832,000 to 700,000. The working-age population will peak at 3.84 million in the 2050s before beginning to decline.

 

According to Markus Rapo, senior statistician at Statistics Finland, immigration is essential to population growth, but it won’t prevent an increase in the demographic support ratio. This ratio measures the number of non-working individuals compared to workers and is expected to rise from 62 to 72 by 2070, largely due to an ageing population.

 

Low birth rates remain a concern, with 2024 marking the seventh consecutive year of fewer than 50,000 births. "The long-term effects of low birth rates will be felt far into the future, impacting both the number of children and women of childbearing age," Rapo warned.