Finland: Chronic labor shortage could decide elections
Finland is suffering from a shortage of workers. This longstanding problem has gone unnoticed, hidden by more prominent headlines, most notably the Nordic country’s pivot towards NATO. But it could be a key issue as Finns head to the polls for a general election on April 2 to decide who should lead the country next.
Since the pandemic restrictions eased, the labor shortage has become even worse. In Uusimaa — Finland’s most populous region that includes the capital Helsinki — the share of unfilled vacancies increased from 25% in 2019 to nearly 60% in 2022.
Finland’s Ministry of Economic Affairs and Employment recognizes 56 occupations as suffering from a labor shortage. Health and social services account for most of the top 15 jobs without workers.
In a nationally televised debate in March, Finnish party leaders across the political spectrum openly admitted that the country is operating without a well-functioning health care system, in part because there are not enough nurses.
Higher wages are needed to attract skilled workers
The problem also extends to other low-wage occupations, with restaurant workers and builders also on the government’s labor shortage list.
For Nico Flinkman, head chef at Helsinki-based seafood restaurant Fisken pa Disken, it’s not so much a lack of candidates that Finland suffers from as much as the ready availability of skilled workers.
“You still have to train them,” said the Finnish chef, who acquired his culinary skills abroad in Lyon, France, before returning.
“Wages are not that high and the hours can be very long, so we really need a higher base salary,” he told DW. Finland does not have a legal minimum wage, with employers and unions collectively agreeing on sector-specific wages.
Immigration needed to fill gaps
The small town of Kankaanpää, about 274 kilometers (170 mi) west of Helsinki, attracted over 100 Ukrainian refugees to study and work in electrical equipment assembly plants.
Lack of Finnish and English language skills has made it difficult for some Ukrainians to integrate. But the city’s mayor is convinced that immigration offers a solution.
“Our own population development is such that the workforce is simply not enough, even if we could guide our own students and unemployed people towards a better working life,” Kankaanpää Mayor Mika Hatanpää told DW.
There is broad consensus among Finland’s main political parties that the country should open its doors to more foreign workers.
But Finland’s right-wing parties see things differently.
“They say that if social security and unemployment benefits are too good, people don’t have enough economic incentives to work,” Merja Kauhanen, chief researcher at Finland’s Institute for Economic Research of Labor, told DW.
Source: DW
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.