Akava: Finland succeeds by taking care of its experts and high level of competence
In its budgetary position, Akava emphasises the need for a new approach to immigration policy, as a shortage of skilled workers threatens to slow down growth opportunities in many sectors and regions.
The prerequisites for growth can also be improved through reforms to the business subsidy and tax system and investments in RDI activities.
“We have already proposed reform of the business subsidy system and the tax system. These comprehensive reforms can lay the foundation for better growth opportunities, improve competitiveness and increase incentives for working. The reforms would also increase the interest of international professionals, companies and investors in Finland, which is now being weakened by immigration-related restrictions and public debate,” says Maria Löfgren, President of Akava.
“To support the collective agreement negotiations that will begin in the autumn, we need a view that employment and the purchasing power of households will develop favourably. The tax bases for income taxation must be fully adjusted for inflation in accordance with the index of earnings in order to avoid increased taxation. Full inflation checks must be carried out at all income levels. We emphasise that further adjustments to the public finances must be avoided in the budgetary round,” Löfgren says.
A new take on immigration policy
According to a recent Akava Works overview, the number of permits for specialists has decreased over the past year: in the second quarter of 2024, 276 first residence permits for specialists were granted, compared to 348 in the second quarter of 2023. According to the overview, the specialists are mainly located in the ICT sector and industrial services.
“Recent information has highlighted the concerns of international specialists working in the field of technology about Finland’s tightening policy in terms of labour-related immigration and the negative attitude. In order not to cut our own branch in enabling economic growth, the policy on labour-related immigration must be changed. In our opinion, the Government Programme’s policies must be reassessed, particularly in order to increase the availability of skilled labour and to withdraw measures that threaten to weaken the conditions for economic growth. At Akava, we believe that the consideration of labour availability must be abandoned,” Löfgren continues.
“The Government’s immigration policy has been restrictive and it has made work-related immigration more difficult and caused concern for international professionals living in Finland. We need more international professionals. It is in the right direction that the Government changed its plan and intends to extend the time limit for leaving the country for an unemployed specialist from three months to six months. Taking into account the duration of recruitments, the protective periods need to be extended further so that we do not drive jobseekers who have worked here out of Finland,” Löfgren says.