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

12.8.2024

TEXT ANU-HANNA ANTTILA
STATISTICS MARKUS RANINEN
GRAPHIC DESIGN EMILIE UGGLA

The average earnings of Industrial Union members whose language is other than Finnish or Swedish are lower in all collec­tive agree­ment sectors, accor­ding to esti­ma­tes by the union’s Research Unit.

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!