Foreign-born workforce drives employment growth in Helsinki region

Employment growth in the Helsinki metropolitan area is largely driven by the foreign-born population. More than one in five residents in the region now have a foreign background, and while immigrants generally face more challenges in the labour market compared to native Finns, their contribution has been essential to recent employment gains.

By the end of 2022, the Helsinki region — comprising Espoo, Helsinki, and Vantaa — was home to 250,000 foreign-background residents, four-fifths of whom were born abroad.

Nearly a quarter of the region's working-age population were immigrants. Vantaa had the highest proportion of foreign-background residents at 25%, followed by Espoo at 22%, and Helsinki at 19%.

A recent report published by the City of Helsinki, Foreign-background Residents in the Helsinki Metropolitan Area: Housing, Employment, and Income in 2022, examined immigrant integration and the situation of second-generation immigrants. The study highlights employment, income levels, and housing conditions, continuing the city's previous analyses on the subject.

In many sectors, the contribution of immigrant workers is crucial. Between 2000 and 2022, the increase in employed persons in the Helsinki region was almost entirely made up of foreign-background workers. For example, two-thirds of the cleaning industry's workforce consists of immigrants. Despite these contributions, the employment situation for immigrants remains weaker than for native Finns, with lower labour force participation rates, higher unemployment rates, and a concentration in low-skill jobs. Women face more challenges than men in many areas.

However, positive trends have emerged, particularly in female employment. Immigrant women are increasingly working in specialised and professional roles, especially in health, social services, and the information and communication sectors.

Second-generation immigrant women also perform better than their male counterparts in education and employment. Among Finland-born immigrants aged 20 to 29, one in three men had not attained a post-basic education qualification in 2022. Women in this group generally had higher levels of education and employment.

The housing conditions of immigrants reflect their lower income levels. Fewer immigrants own their homes compared to native Finns, and overcrowded living conditions are common, particularly among families with children. Cultural factors and expectations about remaining in Finland also play a role in these housing choices.

The foreign-background population in the Helsinki region is highly diverse, encompassing a wide range of origins, languages, and reasons for migration. This diversity makes it challenging to draw general conclusions. However, before the recent economic downturn, overall development trends were positive across several indicators.

Researcher Pasi Saukkonen from the City of Helsinki noted that the employment landscape is evolving: “Many immigrants now work in specialist and professional roles. The integration of immigrant women, in particular, has shown significant progress.”

Despite the challenges, the findings underscore the vital role of immigrants in sustaining employment growth and filling essential roles in the Helsinki region.

HT