Finnish Work Permit Applications Plummet Amid Economic Downturn

Here are the main points:

• Finland's economic growth has led to a decrease in work permit applications.
• It's projected that the number of applications will be around 19,000 in 2024.
• From January to February 2024, there were 2,733 work permit applications.

The economic downturn in Finland has had a noticeable impact on the number of residence permit applications for employment purposes, showing a 19% decline in demand in 2023, totaling nearly 17,000 applications. The Finnish Immigration Service anticipates a slight increase in applications to around 19,000. Despite potential fluctuations, demand for work permits remains below the record-high levels seen in 2022, when 20,960 applications were submitted. In the first two months of 2024, Finland recorded 2,733 applications for work permits, significantly fewer than during the same period in 2023.

Economic developments, particularly the decrease in inflation and GDP growth in 2023, have been significant factors driving down application rates in Finland. Despite these cyclical fluctuations, the country's ageing population and skills shortages continue to create a demand for foreign workers. Consequently, moderate increases in employment-based residence permit applications are anticipated in the coming years, as noted by the Finnish Immigration Service. Several factors, including the economic downturn, international recruitment networks, national policies, and a shrinking working-age population, have contributed to this trend. While the demand for work permits is expected to rise by approximately ten percent in 2024, it is projected that application rates will not return to the levels seen in 2022 for another two years. The Finnish Immigration Service forecasts that applications will reach 20,500 in 2025.

The conflict in Ukraine significantly impacted Finland's economy in 2022, with the country receiving over 20,000 work permit applications, largely driven by Russian applicants following Russia's attack on Ukraine in February of that year. However, this trend did not persist into 2023 due to EU sanctions against Russia, which restricted the free movement of people and hindered Russian workers' access to Finland. Additionally, factors such as the slowdown in the construction industry contributed to the decrease in permit applications last year.

Nevertheless, work permits remain the most sought-after permits in Finland, with requests for study, family reunification, and other permits significantly lower. For instance, the number of positive decisions on residence permits for employees in healthcare and social work reached a record high in 2023, showing a rapid increase over the past few years.

According to Pauliina Helminen, Director of the Permit and Nationality Unit, the main nationality groups applying for Finland's work permits in 2023 included Filipinos, Russians, Indians, and Chinese.