The slump in Finland’s economy has impacted applications for residence permits granted for employment purposes, with the demand in 2023 dropping by 19 per cent. Nearly 17,000 applications were recorded during this period.
According to a forecast by the Finnish Immigration Service, the number of applications for such permits is expected to reach 19,000, SchengenVisaInfo reports.
Although the demand for work permits can rise, it still remains below the 2022 levels, when a record number of 20,960 applications were submitted.
As of 2024, the total number of applications for work permits in Finland reached 2,733 in the first two months of the year – considerably lower than the same time in 2023.
Economic Developments – Main Drive for Decreasing Application Rates
The number of application rates is deeply impacted by the economic development in the country and a decrease in inflation in 2023 (4.3) and the GDP growth being down by 0.4 per cent in 2023, have indeed impacted Finland’s economy.
Despite cyclical fluctuations, the ageing population and skills shortages are creating a need for foreign workers. Therefore, the number of employment-based residence permit applications is expected to increase moderately in the coming years.
Some of the factors that have contributed to this outcome include the economic downturn and its duration, the international recruitment networks, national measures as well as the shrinking working-age population.
In 2024 the demand for work permits is expected to increase by some ten per cent, the application rates are not to reach 2022 levels for another two years, with the Finnish Immigration Services anticipating that applications will reach 20,500 in 2025.
War in Ukraine Affected Finland’s Economy
In 2022, over 20,000 applications for work permits were recorded in Finland, mainly fueled by Russian applicants after Russia attacked Ukraine in February of 2022.
This trend did not continue in 2023, as the EU sanctions against Russia did not favour the fee movement and hindered Russian workers’ access to Finland. Other factors that impacted the decreasing numbers of permit applications last year include the slowdown in the construction industry.
Regardless, work permits are the most sought-after permits in the country, with requests for study, family reunification and other permits being considerably lower.
To give an example, the number of positive decisions on residence permits for employees in healthcare and social work reached an all-time high in 2023 and has increased very rapidly over a few years.
The main nationality groups to apply for Finland’s work permits in 2023 include Filipinos, Russians, Indians and Chinese.
