For foreign-language members, a euro is 83 cents – monthly salary 2,800 euros

A part of the Industrial Union’s members speak a language other than Finnish or Swedish. The largest employer in this group is the metal industry, while the agricul­ture and horticul­ture industries have the highest number of non-Finnish and non-Swedish members relative to the total number employed by these sectors. Of the collec­tive agree­ment sectors repre­sented by the Industrial Union, agricul­ture and forestry industries are consi­dered low-wage industries with mostly seasonal work. Other industries with low wages include newspaper delivery and textile care, where most emplo­yees work part-time.

The monthly earnings of foreign-language members are clearly lower than those of Finnish and Swedish speaking members. Statis­tics show that the average earnings of foreign-language members are lower in all agree­ment sectors.

The emplo­y­ment rate of immigrants has increased and is approac­hing the level of those with a Finnish background.

Accor­ding to the Industrial Union’s Research Unit, the median monthly salary for foreign-language members is around 2,800 euros. This is about 570 euros less per month than what Finnish and Swedish speaking members receive. Based on these figures, the euro of foreign-language members is just 83 cents on average.

Accor­ding to a report by the Ministry of Economic Affairs and Emplo­y­ment (2024), the emplo­y­ment rate of immigrants has increased and is approac­hing the level of those with a Finnish background, but their earnings are lagging behind. The average earnings of persons who have lived in Finland for at least ten years as EU citizens or with a student residence permit are about 80% of the average earnings of persons of Finnish background. The average earnings of persons arriving on the basis of inter­na­tional protec­tion or family reunion are clearly lower (50%).

The educa­tion and skills immigrants have obtained in their home country is often not directly suitable for similar tasks in Finland. In addition, not all who have just moved to the country are fluent in Finnish or Swedish. For these reasons, immigrants are forced to either start their own business or work in low-pay industries that require little training.

Emplo­y­ment rate growing among immigrants

In recent years, a large number of working-age people of foreign background have joined the Finnish labour market. During the record year 2023, nearly 58,500 people immigrated to Finland. As of the end of 2022, one in ten (9.2%) of people in emplo­y­ment had a foreign background. Accor­ding to Statis­tics Finland, work-based immigra­tion is the reason why the country’s emplo­y­ment rate has remained high.

In an article published in Tieto & Trendit (2023), Pekka Myrskylä examines Finland’s popula­tion as a whole. The emplo­y­ment rate of people of foreign background is the same as the national average, with 43% in gainful emplo­y­ment. The most signi­ficant diffe­rence is in the number of pensio­ners. More than one in four (28%) people of Finnish background are pensio­ners, compared to just 6% of those of foreign background.

Sides­tep­ping of needs testing an issue

Some foreign emplo­yees come to Finland as EU citizens. They are required to register their emplo­y­ment in Finland within three months.

Workers coming from outside the EU are subject to stricter monito­ring by the autho­ri­ties. The needs testing of immigra­tion is carried out by region and profes­sion twice a year. Needs testing is exclusive to blue-collar professions.

The purpose of needs testing is to prevent a situa­tion where replace­ment workforce is brought into the country. The fear is that the wages and other terms of emplo­y­ment of the workers that are replaced in this way are eroded. Jobs in a region should there­fore be prima­rily offered to unemployed people in the industry.

Read the article in Finnish!