A nurse in Vantaa, Finland. Like other European countries, Finland is suffering from a labor shortage in the retail and healthcare essential services sector | Photo: Emmi Korhonen/Lehtikuva/dpa/picture alliance
A nurse in Vantaa, Finland. Like other European countries, Finland is suffering from a labor shortage in the retail and healthcare essential services sector | Photo: Emmi Korhonen/Lehtikuva/dpa/picture alliance

In 2023, the Finnish government launched Talent Boost, a five-year program for the active recruitment and hiring of workers from EU/EEA states and four target countries: India, Brazil, Vietnam, and the Philippines.

The Finnish city of Lapland, which lies within the Arctic Circle, is a long way from the sunny tropics of the Philippines, but Lapland is where 14 Filipinos now call their workplace and their home.

The local Finnish public service broadcaster YLE reported on Wednesday (July 31) that the group of Filipinos working in retail establishments in Lapland is an indication of what the country's labor force will increasingly look like -- young and foreign.

The employment of the Filipino nationals was brokered through a deal between employer agency, Barona, and local retailer, Arina.

The hiring program, which began a year ago, sweetened the prospect of relocating to Finland by offering a five-month language course and assistance with securing necessary hygiene certificates. The program also reportedly included initiatives that would help new foreign workers seamlessly integrate into Finland such as assistance with finding accommodation and the bureaucratic intricacies of taxes.

Ariana's human resources manager, Minna Salonen, told YLE that while the preference is to recruit talent who are already in Finland, it is increasingly difficult to do so because "there is little enthusiasm for retail jobs in some places."

The difficulty of attracting local talent is compounded by the country's aging population and younger Finnish nationals moving away to study or work elsewhere. 

According to interviews with YLE, the program seems to be working well for both the employer and the employee.

"Finland is the country of my dreams and I want to continue my career here," said Jove Fernandez, a Filipino who works at the Pello S-Market in Lapland.

Jaana Järvenpää, manager of the Pello store, praised the work ethic and demeanor of the Filipino workforce.

They are hard-working, happy and smiling. Customers like them and from my point of view, too, they are perfect staff," said Järvenpää.

Labor shortage

Finland, like many European countries, is in dire need of workers to sustain its retail markets and essential services such as healthcare.

Data compiled by Statistica indicate that the average age in Finland is 43.8 years old. The Nordic country, with an estimated population of 5.5 million people, needs to recruit younger talent from countries abroad.

Finland needs to recruit workers to take care of its aging population | Photo: Marja Airio/Lehtikuva/picture-alliance
Finland needs to recruit workers to take care of its aging population | Photo: Marja Airio/Lehtikuva/picture-alliance

Government statistics indicate that at the end of 2021, there were an estimated 196,000 employed as personal care workers. About 8.4 percent, equivalent to roughly 16,500 people, were of foreign background. The highest share of employed persons of foreign background was among cleaners, helpers, and other cleaning workers.

Salespersons, shopkeepers, and business professionals also ranked high among most commonly held jobs.

Talent boost

In a bid to tackle its labor shortage and prop up economic growth, the Finnish government launched the Talent Boost program, a five-year (2023 to 2027) work and education-based program to attract people from EU/EEA States as well as four target countries: the Philippines, Brazil, India, and Vietnam.

Finland's labor market faces a significant shortage of skilled workers, despite the country's high levels of competence and skill. To address this, Prime Minister Orpo's government emphasizes employing unemployed jobseekers within Finland and supplementing the workforce through immigration. The revised Talent Boost program prioritizes recruitment from EU/EEA countries and promotes international hiring from non-EU countries.

The program's various initiatives employ strategies that will not only make people come to Finland but also encourage them to stay.

Smoother immigration processes include plans to shorten residence permit processing times through increased automation, aiming for one-week permits for experts and 30-day permits for other workers. Measures to prevent system abuse and ensure compliance with government regulations are also being implemented.

Additionally, the government is reportedly examining factors that influence foreign workers' decision to stay, such as accessible banking services, English-language education, and support for learning Finnish and Swedish.

Cannot function without foreign workers

Corporate giants such as the S Group, Finland's largest retail conglomerate, is showing its support for foreign workers and also calling for a cultural understanding.

The front page of this summer's edition of its quarterly magazine, Yhteishyvä, featured foreign workers with the headline: Movers to Finland. The copy on the cover read, "It is time to get used to the fact that service will not always be available in Finnish. Finland cannot function without foreign workers."

The company magazine reportedly has a circulation of more than two million copies.

YLE reported that the company plans to hire more foreign-born employees and wants its customers to get used to the idea

"The magazine's message [to customers] was to be more understanding," S Group's Human Resources Director, Hanne Lehtovuori, told YLE.

A 2022 study by E2 Group showed that while many foreign workers have a favorable experience in Finland and want to stay in the country, about 40 percent of those surveyed said they experienced discrimination in the workplace, largely because of the language barrier.