Work force

1. Total Population and Density

As of 2024, Finland’s total population is approximately 5.6 million people (Statistics Finland). With a land area of over 338,000 square kilometers, Finland’s population density is just 18 inhabitants per square kilometer (World Bank), making it one of the least densely populated countries in Europe. Much of the country is covered by forests, lakes, and untouched natural landscapes, contributing to this low density.

2. Age Structure

Finland’s population is aging, a common trend in many developed nations. The distribution is as follows:

• 0-14 years: ~16% (~896,000 people) (UN Population Data).
• 15-64 years: ~61% (~3.4 million people) (Statistics Finland).
• 65 years and older: ~23% (~1.29 million people) (Eurostat).

Detailed Breakdown of the Working-Age Population (15-64 Years)

While the 15-64 group is often referred to as the “working-age population,” it is not homogenous in terms of economic activity. Here’s how it breaks down (ILO Finland Report):

• Labor Force Participation Rate: Approximately 74.5% of the working-age population is part of the labor force.
  • This means around 2.53 million people are either employed or actively seeking work.
• Inactivity Rate: About 25.5% of the working-age population (~870,000 people) is not part of the labor force. This group includes:
  • Students: Many individuals aged 15-24 are pursuing full-time education.
  • Stay-at-home parents: Typically engaged in childcare and household duties.
  • Early retirees: Some individuals aged 50-64 may retire early due to personal or financial reasons.
  • Individuals unable to work: Due to disabilities or chronic health conditions.

This distinction highlights that only a portion of the working-age population is actively contributing to the labor market, while others engage in education, caregiving, or are unable to participate in employment.

3. Workforce and Employment

Within the labor force, Finland has high employment levels but faces challenges due to an aging workforce and regional disparities.

Employment Rate

• Finland’s employment rate is 72.8%, meaning 2.48 million people are actively employed (Statistics Finland).
• The official unemployment rate is 6.8% (~170,000 people) (OECD Data), calculated only from those in the labor force (not the entire working-age population).

Key Sectors of Employment

1. Services (74%): Healthcare, education, IT, and public administration (Eurostat).
2. Industry (22%): Manufacturing, technology, and paper production (ILO Finland Report).
3. Agriculture and Forestry (4%): Reflecting Finland’s vast natural resources (World Bank).

Understanding Employment vs. Unemployment Rates

While 72.8% of the working-age population is employed, the unemployment rate of 6.8% reflects only the proportion of those in the labor force who are unemployed. Approximately 25.5% of the working-age population (~870,000 people) is not included in unemployment statistics as they are outside the labor force.

4. Education and Literacy

Finland’s world-class education system ensures a well-educated population:

• Literacy rate: 100%, reflecting universal access to education (UNESCO).
• More than 45% of adults have completed tertiary education (OECD Education at a Glance), one of the highest rates in the world.
• Education is free at all levels, ensuring equal opportunities for all residents.

5. Ethnic Composition and Foreign Residents

• 86% of Finland’s population is ethnically Finnish (Statistics Finland).
• Swedish-speaking Finns (5%) are the largest minority, followed by the indigenous Sami people in Lapland (Eurostat).
• Around 9.5% of the population consists of foreign residents, with communities from Russia, Estonia, Iraq, and Somalia (Finnish Immigration Service).
• Immigration is a growing factor, particularly in addressing labor shortages in IT, healthcare, and engineering.

6. Official Languages

• Finland has two official languages:
  • Finnish: Spoken by 87% of the population (Statistics Finland).
  • Swedish: Spoken by 5%, mostly in coastal areas and Åland Islands (Finnish Government).
• Sami languages are officially recognized in Lapland municipalities, reflecting the importance of preserving indigenous cultures (UN Indigenous Data).

7. Urbanization and Internal Migration

• Approximately 72% of the population lives in urban areas (World Bank).
• The Helsinki Metropolitan Area (Helsinki, Espoo, Vantaa) is home to over 1.5 million people, or 27% of Finland’s total population (Statistics Finland).
• Other major cities include Tampere, Turku, and Oulu, while rural areas in the north and east face depopulation due to urban migration.

Internal Migration Trends

• Younger people move to urban centers for education and employment.
• Older populations often remain in rural areas or smaller towns, leading to challenges in maintaining services in sparsely populated regions (Finnish Ministry of Employment).

8. Immigration and Population Trends

Finland’s population faces the following trends:

• Low Fertility Rate: At 1.4 children per woman, Finland’s birth rate is below the replacement level of 2.1 (Eurostat).
• Aging Population: An increasing number of retirees creates pressure on social systems and reduces the workforce (OECD Aging Report).
• Immigration: A vital component of Finland’s strategy to offset population decline and labor shortages. Skilled workers are particularly sought after in healthcare, technology, and education (Finnish Immigration Service).