Study: Immigration strengthens Finland’s public finances

Immigrants are not a fiscal burden on Finland – they contribute more in taxes than they receive in public transfers. Especially when employed, foreign-language speakers generate more than they consume, according to a new research report by the Diaconia University of Applied Sciences (Diak) based on statistical comparison.

The study challenges long-held myths about immigrants’ employment and income. It shows that the employment and labour force participation rate among foreign-language speakers is 61 percent, higher than the 50 percent among Finnish- or Swedish-speaking people.

Researchers used mother tongue to define the foreign-language population, as it remains constant over time and offers a reliable indicator of background. Every year, up to 15,000 foreign nationals gain Finnish citizenship, while some 37,000 Russian citizens also hold Finnish citizenship.

Foreign-language speakers make up around ten percent of Finland’s population but account for only five percent of total public transfers. Their economic dependency ratio is nearly equal to that of native speakers, meaning they do not significantly increase the dependency burden on the working population.

“The old perception of immigrants as a fiscal burden has been deliberately negative, but our findings show no evidence to support it,” says Diak researcher and report co-author Sakari Kainulainen.

The report finds that foreign-language speakers’ share of tax revenue is also significant. In 2023, they paid €2.7 billion in taxes and received €2.4 billion in public transfers, leaving a net positive contribution of €225 million. In contrast, native-language speakers’ net balance was €5 billion in deficit.

Comprehensive data supports migration policy

According to Kainulainen, this is the first comprehensive statistical review of immigrants’ impact on public finances and labour markets at the population level.

Finland’s working-age population is shrinking, yet nearly all foreign-language residents are of working age. The number of employed immigrants is growing rapidly, while the number of employed native-language speakers has barely increased in the past 25 years.

“Immigration is a politically divisive issue right now. That makes it all the more important that discussions are based on facts, not assumptions,” Kainulainen stresses.

He also urges wider use of Statistics Finland data in migration-related policy and debate.

“Politicians should refrain from fuelling negative attitudes toward immigrants. Immigration is a key factor in sustaining Finland’s population and labour force,” Kainulainen concludes.

Migrants are not a single group

Immigrants are a diverse population, and different political groups selectively highlight data to fit their agendas.

The largest migration flows to Finland do not come from Africa but from Sri Lanka, India, the Philippines, Bangladesh, Vietnam, Nepal, and China – each sending about 2,000–3,000 people annually.

Asylum recipients tend to find work less often than other migrants. According to Helsingin Sanomat, of the roughly 32,000 people who sought asylum in 2015, only 42 percent of those of working age with approved applications were employed by 2023. However, among minors in the same group, as many as 57 percent were working – close to the 62.7 percent employment rate among Finnish peers. Many in this age group are still studying, which explains the lower employment figures.

Minna Säävälä from the Ministry of Economic Affairs and Employment told Helsingin Sanomat that employment can be hindered for many reasons. Migrant’s home country may have offered limited access to schooling, and it is difficult to improve language or education skills in a new country if literacy and basic education are weak. Studies also show that discrimination plays a role in limiting employment opportunities.

Still, the number of asylum seekers is relatively small. According to the Finnish Government, the number of asylum applications nearly halved in 2024 to just under 3,000, with 1,581 positive decisions. For comparison, the Finnish Immigration Service received 196,000 applications in total in 2024, including about 15,000 work-based residence permits and 14,163 first-time student residence permits.

Source: Myrskylä, P. & Kainulainen, S. (2025). Maahan muuttaneet Suomessa. Hyvinvointivaltion uhka vai ainoa mahdollisuus? Diak Puheenvuoro 53.

• The report examines, through national statistics, the employment, taxation, and public transfers of foreign-language speakers compared to native-language Finns. Based on full Statistics Finland datasets, it covers the entire resident population at the end of 2024, including annual employment statistics, demographic registry data, and income and transfer records from 2023. Non-taxable income, such as social assistance and child benefits, was included from the Social Insurance Institution of Finland (Kela).
• In the study, immigrants are identified primarily by language, not nationality – allowing a more accurate population-level analysis