Analysis of migration to Finland

The Importance of Migrants in Addressing Finland's Ageing Population

Migration is often a topic surrounded by misconceptions and sensational media coverage, which can obscure the real dynamics and impacts of immigration. While headlines might suggest a continuous surge in global migration, the reality is more stable and nuanced. Over the past 30 years, about 4% of the world’s population has consistently lived in a country other than where they were born. Despite this stability, migration plays a crucial role in the demographic and economic landscapes of many countries, including Finland. This blog post explores how migration is essential for Finland, especially in light of its ageing population.

Demographic Challenges in Finland

Finland, like many developed nations, faces significant demographic challenges due to an ageing population. The retirement age in Finland is flexible, ranging from 64 to 68 years for earnings-related pensions, while the guaranteed pension scheme has a fixed retirement age of 65 years. Without the influx of migrants, the percentage of people over 65 in Finland would have surged from 14% to 25%, dramatically increasing the aged dependency ratio from 21% to 42%.

The aged dependency ratio is a critical indicator used by economists to assess the economic impact of demographic changes. It represents the number of people over 64 years old relative to the working-age population, multiplied by 100. A higher ratio indicates more significant economic strain as fewer working-age individuals support a growing elderly population. Migration helps to mitigate these effects by replenishing the workforce, which is vital for maintaining economic stability and growth.

The Role of Migrants in Finland's Economy

Migrants play a pivotal role in supporting Finland’s labor force. A rapidly aging population leads to a shortage of qualified workers, which can hamper economic productivity and growth. By attracting immigrants, Finland can address this labor shortage, ensuring that there are enough workers to support the economy and the welfare system.

Over the past 30 years, Finland has seen substantial growth in its migrant population. The migrant population in regions like Uusimaa has increased dramatically, making it a hub for migrant settlement. This influx has helped balance the demographic scales, contributing to a more sustainable aged dependency ratio.

Misconceptions About Migrants

Despite their positive contributions, migrants are often subject to misconceptions. One common belief is that immigrants rely heavily on unemployment benefits and do not contribute to the workforce. However, the unemployment rate among people of foreign origin in Finland is only about 5-10% higher than that of native Finns. This slight difference does not support the stereotype of migrants being economic burdens.

Another misconception is that immigrants contribute to higher crime rates. However, data from 2022 shows that the share of suspected offenses among immigrants is even slightly lower than that of Finnish nationals. These facts highlight that migrants integrate into Finnish society and contribute positively.

Migration Trends and Patterns

An examination of migration patterns over the past three decades reveals some interesting trends. Initially, European countries were the primary source of migrants to Finland. However, in recent years, there has been a noticeable increase in migrants from Asia. Despite these changes in origin, the gender distribution among migrants has remained balanced over the years.

Additionally, Finland's position among developed countries in terms of international migrant stock relative to the total population has improved. In 1990, Finland was ranked 34th among developed countries, moving up to 33rd by 2020. Among European nations, Finland improved from the 31st spot to the 26th. This upward movement indicates a growing acceptance and integration of migrants into Finnish society.

Migration in Comparison: Finland and Sweden

Comparing Finland to its neighbor Sweden provides further insights into the impact of migration. Sweden has seen more significant changes, moving from the 19th to the 11th position among developed countries between 1990 and 2020. Among European countries, Sweden jumped from the 13th to the 3rd spot in the same period. These rankings show that while Finland has made progress, there is still potential for more substantial integration and benefits from migration.

Conclusion

Migration is not the sole solution to the challenges posed by an aging population, but it is an essential part of the strategy to address these issues. Migrants bring valuable skills, contribute to the labor force, and help balance demographic scales, ensuring that Finland can maintain economic stability and growth. By understanding the real impacts of migration and dispelling common misconceptions, Finland can continue to create a more inclusive and dynamic society.

The comprehensive data analysis and visualizations in this study underscore the importance of migrants in shaping Finland’s future, highlighting the need for informed and balanced immigration policies. To secure a prosperous future, Finland must continue to embrace and support its migrant communities, integrating them fully into its economic and social fabric.

For a more detailed analysis, you can check out my GitHub project on the analysis of immigrant flows and stocks in Finland.