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Finnish tech sector opposes government’s immigration reforms
The tech sector in Finland fears talent shortage as government introduces stricter immigration policy
Finland’s technology sector has raised strong opposition to new labour market-based anti-immigration legislation that threatens to derail plans by business and industry to enhance the country’s international reputation and appeal in the hiring of foreign IT talent.
Prime minister Antti Orpo’s conservative far-right government is proposing legislative measures that carry the risk of discouraging IT talent to move to Finland. In addition, the proposed reforms will make it more difficult for citizens of non-European Union (EU) states to find new jobs in Finland should their existing employment contracts not be renewed.
The proposed legislation is contained in the Finnish government’s immigration controls-led Labour Market Reform Plan (LMRP). The LMRP includes stricter work visa requirements in addition to language tests in Finnish or Swedish.
On a fundamental level, the proposed legislation would make it significantly more difficult for IT specialists holding work-based residence permits to remain in
IT organisations and tech startup groups argue that the LMRP, as currently framed, will put Finnish companies at a competitive disadvantage in recruiting skills and talent from outside
The proposed legislation, which the government wants to implement in 2025, would require foreign IT specialists holding work visa residence permits (WVRP) six months to leave Finland if they are unemployed and cannot find a new job, said Youssef Zad, chief economist of the Finnish Startup Community (FSC), a platform serving over 240 early stage tech businesses in Finland.
“Six months is a relatively short timeframe,” said Zad. “If specialist workers feel they may not be able to find a job fast enough, and within the specified six-month period after facing unemployment, they might go where job opportunities are more readily available.”
Employment termination
Enterprises and organisations in the public and private sectors will, under the proposed immigration and labour market reform legislation, be required to inform the Finnish Immigration Service (Migri) at the point when a WVRP holder’s employment has been terminated.
“The proposed stricter laws will cause problems for many startup companies,” said Zad. “The new laws emerge amid fears that immigration to
Stricter controls
The introduction and enforcement of stricter immigration and labour market laws will make it more difficult for Finnish companies to achieve growth targets and recruit much-needed research, development and innovation talent, said Laura Lindeman, a senior director in Business Finland and head of the state enterprise development organisation’s Work in Finland Unit (WiFU). “Our role is to promote
A survey conducted by Statistics Finland in March identified the lack of skilled labour as a major obstacle to driving economic growth in
The Ministry of Labour and Employment estimates that
Because of the stricter work visa permit and immigration rules,
Moreover, foreign entrepreneurs and workers with work visa permits also find it problematic to access routine financial products and services, such as being able to open a standard bank account, she said.
“What entrepreneurs find particularly difficult about moving to
Non-EU nationals
The Finnish government’s tightening of immigration laws will also impact non-EU nationals already living in
The reforms set out in the Integration Act will transfer the main responsibility for assimilation of immigrants from the state to municipalities. The Act will enable local authorities to impose charges on immigrants for certain types of services, including healthcare.
In March,
The core aim of the IRLP is to integrate immigrants more quickly into Finnish society through language study, cultural appreciation and civil rights induction courses. Permanent residence permits will be restricted to immigrants that successfully complete the joined integration programmes. The reform would extend the period of domicile required for a permanent residence permit from the current four years to six.
From 2025, proficiency in Finnish or Swedish, demonstrated in a language test, will be a mandatory condition to obtain a permanent residency permit in
In
Rise in unemployment
The weakened state of the Finnish economy, which has seen unemployment rise since 2023, had created a larger labour pool of IT skills against the backdrop of immigration-based labour market reforms, said Samuli Salonen, chief executive of Helsinki-based talent acquisition company TalentBee.
“Three years ago, it was very difficult to find talent for specialised or senior roles,” he said. “There were far fewer candidates available in the open market, especially in the tech industry, where everyone was constantly hiring. In the labour market of today, where the economy is not so strong, there are many applicants pursuing the same job.”
According to Ministry of Economic Affairs and Employment data, the number of unfilled vacancies in
Mindful of criticism from business and industry organisations, the government plans to convene a public hearing in August to present and explain the different measures in its immigration and labour reform plans.
“The public hearing will be conducted in English and open to all,” said Jarmo Tiukkanen, a senior adviser to the Ministry of Economic Affairs and Employment on labour migration and integration policy. “It will describe and clarify the government’s proposals, and offer an overview of how the legislative reforms will operate in practice and impact on the economy. We want people to be able to ask questions in an open discussion forum.”