Finland Eases Residency Rules to Retain Global Talent

Finland is making significant moves to bring in and hold onto skilled workers worldwide. 

The country is changing its rules to make it easier for international students and experts to stay long-term.

Permanent residency for Master’s graduates

The Finnish government plans to grant permanent residency to those who complete a master’s degree in Finland and pass a Finnish or Swedish language exam.

This move, spearheaded by the Minister of Employment, Arto Satonen, is part of a broader strategy to retain the talent that Finland so desperately needs.

Satonen voiced his concern that only about half of the students who study in Finland decide to stay after they finish school. The government wants to find ways to keep these bright minds in the country.

Who is coming to Finland?

Finland is seeing more people interested in studying and working there:

1. Work permits: In the first half of 2024, over 9,000 people applied for first-time work permits. That's up from 8,800 in the same period last year.

2. Permit renewals: About 11,700 people asked to extend their work permits in early 2024. Last year, it was 9,400.

3. Student permits: Nearly 7,000 international students applied to study in Finland in the first half of 2024. That's more than the 6,700 who applied last year.

4. Top countries: Most student applications came from Nepal, Bangladesh, China, India, and Sri Lanka.

These numbers show that Finland is becoming more popular for work and study.

However, the Finnish Immigration Services (FIN) found that fewer specialists are applying for new permits. In early 2024, only 600 specialists applied, down from 900 the year before.

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Faster student visa processing

Meanwhile, the FIS reported that the country is getting faster at processing student residence permits.

Now, it takes about 30 days on average, which is quicker than last year's 38 days.

Anu Tarén, who oversees student and researcher permits, said that computers are helping speed things up. About 19% of all positive decisions are now made automatically.

This means real people can focus on the trickier applications that need more attention.

However, there might be some delays for students applying from New Delhi and Abu Dhabi.

The Finnish embassies there are having trouble keeping up, so some students might not get their permits until August or September.

Raised income requirements for residency

Meanwhile, starting November 1st, 2024, Finland is changing its rules about how much money migrants need to hold a residence permit:

1. Single adults need to show that they earn €14,520 per year, up from €12,000.

2. For students, the monthly requirement will go up from €560 to €800.

3. Au pairs need to show €340 per month instead of €280.

4. For working holiday visitors, they will need €2,450 for the first three months, up from €2,000.

These new rules are to make sure migrants coming to Finland can support themselves. The government based these numbers on what it costs to live in Helsinki, including expenses like rent and healthcare.

Existing residence permit holders do not need to worry as these changes will not affect them right away. However, if they apply for a new permit after November 1st, they will need to meet these new income requirements.

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The global race with talent

Finland is not just competing with its Nordic neighbors anymore. It is up against countries all over the world in trying to attract the best and brightest.

“There is a global competition for top talent,” Satonen admitted.

A survey by two Finnish engineering unions found that 90% of foreign specialists living in Finland are worried about the ongoing talks about immigration.

Even worse, 80% do not think that Finland will be able to attract more international experts in the future.

Part of the problem might be the government's plan to send unemployed foreign workers home if they cannot find a new job within six months. Many people think this is too harsh and could scare away talented workers.

Big Finnish companies are also unhappy, saying that all this talk is making Finland look bad to international companies and experts.

They are worried it might become harder and more expensive to hire people from other countries.

Balancing open doors and local concerns

Finland’s new policies show a tricky balance the country is trying to strike.

On one hand, it wants to attract international talent to help its economy grow.

On the other hand, it needs to address the concerns of Finnish citizens about jobs and integration.

The higher income requirements, for example, are meant to ensure that newcomers can support themselves.

However, they might also make it harder for some people to come to Finland, especially those in lower-paying jobs.

Similarly, the plan to offer permanent residency to master’s graduates could bring in more skilled workers.

However, it might also raise questions about fairness for those who do not have the opportunity to pursue higher education.

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Influencing EU approach to talent retention

Finland’s new policies could influence how other European Union countries think about immigration.

1. Brain Drain Concerns: If Finland becomes more attractive to international students and workers, other EU countries might worry about losing talent. This could lead to a “race to the top” in offering benefits to skilled immigrants.

2. Income Thresholds: If Finland’s new income requirements work well, other EU countries might follow suit. This could create a more uniform approach to ensuring immigrants can support themselves.

3. Student Retention: Finland’s efforts to keep international students after graduation could become a model for other EU countries facing similar challenges.

As the EU faces demographic challenges and skills shortages, Finland’s approach could provide valuable lessons for the entire bloc.

Tightened rules for long-term visitors

For long-term visitors and potential migrants, the changes are more significant:

1. Students: The faster processing times for student permits is good news. However, the higher income requirements might make it harder for some to stay after graduation.

2. Workers: The new income thresholds could make it more challenging for some to qualify for work permits, especially in lower-paying jobs.

3. Specialists: While Finland is trying to attract more experts, the declining number of specialist applications suggests there might be some hesitation among this group.

4. Language Learners: The link between language skills and permanent residency could motivate more long-term visitors to invest in learning Finnish or Swedish.

These changes show that while Finland wants to attract international talent, it is also setting clear expectations for those who want to stay long-term.

Finland’s future in a global world

Finland’s new approach to immigration shows it is thinking hard about its place in the world.

By trying to attract and keep international talent, Finland is betting that diversity and fresh ideas will help its economy grow.

However, there are still questions. Will these changes be enough to make Finland stand out in the global competition for talent? Can the country balance its need for skilled workers with the concerns of its citizens? And how will these policies affect Finland’s relationship with the rest of the EU?

As Finland moves forward with these new rules, the world will be watching. Other countries might learn from Finland's successes — or its mistakes.

For now, Finland is taking a bold step, hoping to build a future where international talent feels at home in the land of a thousand lakes.