By Toni Ahvenainen and Markku Mattila
As the war prolongs, the employment of Ukrainians has become an increasingly central and multifaceted issue in the countries that have received them. European Union’s Temporary Protection Directive (TPD) gives a broad framework to all EU countries how to handle the situation giving Ukrainians right to reside in the country, immediate right to work and study. However, the directive is applied independently in different Member States producing different reception strategies, which have a direct impact on the labour market integration of Ukrainians. Finland’s most pertinent point of comparison lies with other Nordic countries, each of which is dedicated to upholding and advancing the principles of the Nordic welfare state model. Some of them, such as Sweden and Denmark, have emphasized rapid and seamless entry into the labour market. Others, like Finland and Norway (despite not being an EU-member has adopted the guidelines of TPD), have focused on a longer integration process, prioritizing the strengthening of language skills and social inclusion before entering the labour market.
Different strategies raise questions about their effectiveness and resilience. In the following, we examine the effectiveness of the Finnish reception strategy, focusing on the challenges of Ukrainian employment in South Ostrobothnia (Western Finland). The region is predominantly rural, with its economy centred around primary production and industry. It is home to approximately 190,000 residents, of whom 3.7% are foreign nationals. During 2022, around 1,800 Ukrainians arrived in the region, and by the end of 2024, their number has risen to approximately 2,000. While this figure is relatively small in the national context – considering the over 72,000 Ukrainians who have arrived in Finland – it is nonetheless significant within the context of South Ostrobothnia.
The Roots of the Finnish Reception System
Finland’s reception system was originally designed specifically for the reception of quota refugees from 1979 and has developed in layers through various refugee-related cases. Spontaneous asylum seeker flows, such as those seen in 2015–2016 and with Ukrainians after February 22, 2022, have been rare exceptions in modern Finland (in addition a few thousand Somalis in 1990–1991 and few thousand ex-Yugoslavians mainly in the 1992). A key characteristic of the quota refugee system is that the receiving country determines and thus knows in advance the number of incoming refugees. In Finland, it has also assumed that these individuals will remain in the country permanently, which is why they undergo an integration process (language and cultural training) before being directed to the labour market.
The core idea of the system has been to provide protection for those in need. Employment has been considered a separate issue from the reception system, expected to be addressed after integration through the general employment services of the welfare state. These services, as well as integration services, are available to all refugees regardless of their status, but typically, refugees have entered the labour market only after completing integration training. While participating in language and integration courses, social security provided by the welfare state covers essential living expenses. Upon transitioning to the labour market, individuals either receive a salary or unemployment benefits.
Both the quota refugee system and the previous three above-mentioned waves of spontaneous arrivals have involved individuals who (except for those from former Yugoslavia) come from outside geographical Europe and thus have cultural backgrounds that significantly differ from Western norms. Often, they also have serious educational deficiencies by Western standards, including illiteracy – some may come from ethnic groups without a written language or from societies where gender, cultural norms, or poverty hinder access to education. Many are likely to have suffered from societal collapse, prolonged stays in refugee camps, and the alienation associated with such experiences.
Ukrainians, on the other hand, left their country spontaneously and rapidly, without the experience and trauma of refugee camps. In addition, they have often been perceived through the lens of a shared European identity, with an emphasis on their strong educational backgrounds, work readiness, and relative cultural proximity to Finland.
Local actors and experts in integration and employment, whom we interviewed during our research, were highly optimistic from the beginning of Ukrainians’ arrival that their background, combined with the Finnish reception system and the rights granted by the TPD, would lead to their rapid employment in the local labour market. This optimism was further supported by Ukrainians’ own stated desire for quick entry into paid employment, as expressed in our interviews with them.
The Precarious Labour Market Position of Ukrainians
Based on the accounts of the interviewed Ukrainians, their labour market integration in South Ostrobothnia has proven to be challenging. Even after three years, the number of those employed remains low. One key reason for weak employment is insufficient language proficiency (in either Finnish or English). Many Ukrainians postponed learning the language because they considered their stay temporary, and from their perspective, Finnish appeared to be a relatively peripheral language that would not be useful after the war ended. Due to their weak language skills, transferring their expertise and qualifications to the Finnish labour market has been difficult.
Employment has been narrowly concentrated in just a few sectors, typically in low-wage and physically demanding jobs. In these sectors, Ukrainians are unable to utilize their previous education and skills, preventing them from building a sustainable and stable career. As a result, the employment status of those who have found jobs remains precarious and unstable. This is reflected in short and unstable employment relationships, which often end either with the employee resigning or the employer terminating the contract. Despite the challenges, many Ukrainians remain motivated to find work that matches their education and skills.
A timeline of labour market integration emerges from Ukrainians’ accounts. At the onset of the war, the local seasonal labour market provided many Ukrainians with quick access to employment. However, after a few years of permanent residence, seasonal work no longer appears to be an attractive option. Upon arriving in South Ostrobothnia, the low wages from agricultural seasonal work seemed, relative to Ukraine’s cost of living, to enable a reasonable standard of living. Over time, however, it became clear that these wages were insufficient to cover living expenses in Finland. Additionally, the cost of living increased due to the inflation spike in 2022 and 2023, with inflation in Finland averaging 6.7%. Physically demanding and poorly paid seasonal work thus served primarily as a short-term entry point into the labour market, without offering opportunities for long-term and stable labour market integration.
Their precarious position in the labour market almost invariably leads them still to low-skilled manual labour. In addition to seasonal and manual work in agriculture, this often means employment in cleaning services. Although the wages in cleaning work do not significantly differ from those in seasonal jobs, cleaning is considered more appealing because it is physically less demanding. From the perspective of Ukrainians, factory work is the most attractive option in the region. It typically does not require advanced education, specialized skills (the work is often routine), or strong Finnish language skills, yet it offers decent working conditions and is often perceived as providing a good salary.
Key Challenges in Employment
It appears that Finland’s traditional long-term integration policy, built on historical experiences with quota refugees, and the TPD are, despite having similar objectives, in conflict with each other. At the intersection of this conflict, we see the clash between a traditionally well-managed refugee policy and the large-scale, uncontrolled arrival of Ukrainians, as well as the high entry requirements of the Finnish labour market versus Ukrainians’ more pragmatic work culture. Additionally, there are concrete challenges, such as the labour market structure in South Ostrobothnia and governmental challenges created by the TPD. We summarize these challenges into four key points.
Firstly, the long-term approach of the Finnish reception strategy may conflict with the immediate needs of Ukrainians. Since Ukrainians fled the war abruptly and unexpectedly arrived in Finland, many of them may have perceived their situation as temporary, postponing language learning and committing to integration until later. Additionally, the Finnish reception strategy’s focus on (quite far) future-oriented employment prospects may undermine Ukrainians’ motivation to actively engage in the integration process.
Secondly, the strong specialization of Finland’s labour market, where jobs and professions often require very specifically defined areas of expertise, specialized skills, and formal qualifications, poses a significant barrier for foreign job seekers, including highly educated individuals. While Ukrainians are educated and motivated, their skills and work experience are often perceived as “a general competence” in Finland, meaning they are not considered directly transferable to the labour market without additional training, language proficiency, or recognition of qualifications. Acquiring the competencies required in a highly specialized labour market is a lengthy process, and due to working culture differences between countries, not all Ukrainians may successfully achieve it.
Thirdly, regional factors, such as the economic structure of South Ostrobothnia, significantly limit the available job opportunities. The region’s labour market focus on seasonal work, agriculture, and low-skilled jobs does not support the employment of highly educated individuals or those with specialized expertise. Additionally, the capacity of regions to accommodate a heterogeneous, foreign-born workforce varies. For example, immigration and the labour market opportunities for foreigners in Finland are heavily concentrated in the Helsinki metropolitan area and a few other cities. South Ostrobothnia is still in the process of learning how to employ a multi-ethnic workforce.
Fourthly, many Ukrainians perceive their current situation under the TPD as uncertain and temporary. This same sense of temporariness is also evident among employers, the business sector, and Finnish society. While the directive is a crucial part of the EU’s resilience strategy, it does not inherently guarantee successful integration. The directive primarily provides a legal and administrative framework for residence and employment. It acts as a “first gateway,” after which individuals must confront and overcome numerous other institutional and cultural barriers to fully integrate into working life.
Paradoxically, the directive, which aims to promote rapid labour market integration, may inadvertently reinforce Ukrainians’ precarious position in the labour market. The sense of temporariness – uncertainty about the duration of residence rights – forces many Ukrainians to make short-term employment decisions, often leading to work that does not match their education or skills. Additionally, the temporary nature of their stay creates uncertainty about long-term investments, such as retraining or further education. Many consider multi-year vocational training too risky, as the end of temporary protection could result in the loss of residence rights and a requirement to leave the country on short notice.
Towards a More Flexible Reception Strategies
While the Finnish reception strategy provides a strong foundation for sustainable labour market integration, it has historically evolved as a response to small refugee groups arriving permanently and in a relatively controlled manner. The arrival of Ukrainians highlights the need to develop Finnish reception strategies to better respond to more dynamic and unpredictable situations like the current one, with greater speed and flexibility. Of course, long-term integration policies remain highly relevant, and in the case of Ukrainians, their full impact has yet to be seen. However, their case nonetheless reveals the need to develop more resilient strategies.
While the Finnish reception strategy provides a strong foundation for sustainable labor market integration, it has historically developed in response to small refugee groups arriving permanently and in a relatively controlled manner. The arrival of Ukrainians highlights the need to adapt Finnish reception strategies to better respond to more dynamic and unpredictable situations like the current one, with greater speed and flexibility. Of course, long-term integration policies remain highly relevant, and in the case of Ukrainians, their full impact has yet to be seen. However, their case nevertheless reveals the need to develop more resilient strategies.
One approach to developing dynamic capabilities could be to address the integration challenges of Ukrainians not merely as refugee policy. Instead, reception and integration issues could be consciously approached from a perspective that emphasizes skills-based immigration policy and development. From this viewpoint, the arrival of highly educated and motivated Ukrainians in regions with diverse economic structures, demographics, and economic conditions can be seen as a kind of “catalyst” for effectively developing, not only local labour markets, economic structures, and industries, but also Finnish integration policies.
Secondly, despite its shortcomings, the immediate and unrestricted right to work and study provided by the TPD offers a model for developing a dynamic and resilient reception strategies. The goal should be to create accelerated pathways that bypass or alleviate traditional bottlenecks in labour market integration. Such pathways could include simplified skills recognition processes, centrally targeted language and supplementary training programs for specific groups of arrivals, and more flexible entry requirements for the labour market. All these measures would support both the rapid employment of Ukrainians and the effective utilization of their human capital within Finnish society.
Social sustainability and human capital perspectives are also essential when developing more flexible reception strategies. Ukrainians represent by far the largest foreign-born group to arrive in Finland, both in absolute and relative terms, in the country’s modern history. Whether the war ends quickly or slowly, in one way or another, it is likely that a significant number will remain in Finland, forming a permanent and substantial ethnic minority – potentially the second or third largest minority group in the country.
The position of this new minority group in the labour market and more broadly in Finnish society is a particularly significant issue from the perspective of social sustainability. If full opportunities for Ukrainians to integrate into the labour market and Finnish society cannot be provided, the result may be deepening inequality and increasing social segregation. Prolonged exclusion from the labour market could lead to a situation where Ukrainians remain in a permanently disadvantaged position, undermining social cohesion, increasing the risk of segregation, and potentially leading to intergenerational marginalization and integration challenges. The underutilization of Ukrainians’ human capital and their social marginalization not only weaken their individual well-being and professional development but are also detrimental to the receiving region and Finnish society.
Towards a Brighter Future
Although Ukrainians have faced significant challenges in finding employment in South Ostrobothnia, it is still too early to draw definitive conclusions about Finnish reception policies – whether the Nordic long-term approach will ultimately work for Ukrainians or not. Currently, our research only indicates that there has been a contradiction between Finnish reception policies and Ukrainians’ expectations.
Positive future expectations arise, however, from the fact that our latest interviews indicate Ukrainians are now significantly altering their perceptions of their situation and prospects. Many of them have now had their first experiences with the Finnish labour market, which has made them acutely aware of the factors limiting their labour market position. They also realize that, regardless of the outcome of the war, not everyone will return to Ukraine. As a result of these experiences, Ukrainians appear to be shifting their strategies: instead of focusing on immediate employment, they are now concentrating on building more long-term employment pathways. This may include learning Finnish (after all), retraining for new professions, or even starting their own businesses.
It seems, therefore, that even though Finnish traditional reception strategies are slow to adapt to the Ukrainian situation, it is the Ukrainians who are adapting to Finland’s long-term reception strategies. While their initial encounters with the labour market have been challenging, they are developing new approaches to labour market integration. These changes suggest that Ukrainians are capable of actively adjusting to the demands of the Finnish labour market environment. This creates a foundation for more optimistic prospects, enabling better utilization of their human capital for their own benefit and for the benefit of Finnish society.
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Toni Ahvenainen is Junior Research Fellow at the Migration Institute of Finland (Seinäjoki Unit). He can be reached at: [email protected]
Markku Mattila is Senior Research Fellow at the Migration Institute of Finland (Seinäjoki Unit). He can be contacted at [email protected]
The blog post is based on research projects on Ukrainians conducted by the Migration Institute of Finland [Link: https://www.migrationinstitute.fi] in South Ostrobothnia. As part of these projects, 51 semi-structured in-depth interviews were conducted with Ukrainians who arrived after February 22, 2022. The interviews were carried out by an interviewer of Ukrainian origin in Ukrainian or Russian, depending on the interviewee’s preference. The study adhered to the ethical research practices defined by the Finnish National Board on Research Integrity and followed the guidelines of the European Union’s General Data Protection Regulation (GDPR). In addition, 18 other stakeholders were interviewed, including local and state officials, representatives of non-governmental organizations, business sector representatives, and other experts working with refugees, integration, and the employment of foreigners.
Publications available online:
1) Settlement of Ukrainians Receiving Temporary Protection in South Ostrobothnia Link: https://epliitto.fi/wp-content/uploads/2024/01/B_15_Settlement_of_Ukrainians_Receiving_Temporary_Protection_in_South_Ostrobothnia.pdf
2) Resilientti Etelä-Pohjanmaa Link: https://epliitto.fi/wp-content/uploads/2024/01/B_125_Resilientti-Etela-Pohjanmaa-JULKAISTU.pdf.
3) Ukrainians’ Labour Market Integration: Turning Challenges into Opportunities. Link: https://hromada.network/ukrainians-labour-market-integration-south-ostrobothnia/.