Finnish Immigration Service service point in Helsinki. LEHTIKUVA
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In a significant demographic shift, Finland has seen a substantial increase in its working-age population, largely attributed to a rise in net immigration, as reported by Henna Busk, Senior Economist at Pellervo Economic Research (PTT). These insights follow the release of new statistics by Statistics Finland on Thursday.
The preliminary population statistics for 2023 reveal that nearly 72,000 individuals migrated to Finland from abroad, marking the highest number recorded in consecutive years.
The net immigration figure also reached an unprecedented high of over 58,000. While these numbers include temporary factors such as Ukrainian refugees fleeing the war, Busk notes that the overall trend in net immigration is increasing, suggesting a continued growth in the working-age population.
PTT’s projections suggest that this “new normal” in net immigration could stabilize at around 25,000 annually in the long term. This influx is expected to sustain the growth of the working-age population, contrasting previous forecasts by Statistics Finland, which anticipated a decline.
Despite the shifting demographics, the December labor force survey showed little change. The number of employed individuals aged 15-74 in December 2023 was almost the same as the previous year. However, unemployment rose by 12,000 compared to the previous year.
While the economic situation has deteriorated, the labor market has not followed suit to the same extent. The market is slightly weaker but remains robust. An increase in the number of temporary layoffs in December, up by 20,000 from the previous year, indicates that the labor market is primarily adjusting through temporary layoffs.
Interestingly, the number of long-term unemployed did not increase in December, despite the high levels. Busk finds it challenging to explain this stagnation. One possibility is that some long-term unemployed individuals may have moved entirely out of the labor force.
HT
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Source: www.helsinkitimes.fi
