In one of our previous blogs, we said that in the context of the Finnish labor market, it pays off to study. In that blog, we talked about the employment status of Finnish graduates from 2009 to 2021. We based that discussion on a Ministry of Education and Culture study.
Today, we look at an interesting new analysis talking about working life expectancy, unemployment expectancy, and expected time outside the workforce. The Ministry of Economic Affairs and Employment released a report by Heikki Räisänen on these issues a week or so ago.Â
Räisänen’s calculations are based on register-based data from Statistics Finland. His analysis had a long-term view and looked at years between 2010 and 2022. In this blog, we’ll mostly look at the calculations based on the 2022 data.
Get our Starting in Finland Kit – a set of introductory video courses about living and working in Finland now from our online store.
To start with
Räisänen starts his report by looking at the size of the Finnish workforce from 2010 to 2022. He explains that after 2010 the working-age population of Finland, those aged 18 to 64, has gradually decreased in size.
He adds that the number of people outside the workforce has also decreased while the number of people working has increased. This is especially true for women. He points out that this means that the Finnish labor market is thus getting more out of a decreasing workforce.
Now, let us turn to the actual study results.
Working life expectancy and unemployment expectancy for the whole population
According to Räisänen, an 18-year-old who entered the workforce in 2022 could expect to work for 33.32 – 36.97 years. The estimated length of this person’s working life depends on the employment rate. If the employment rate is 72 %, the expected length of working life is 33.32. And with the employment rate of 80 %, the length is 36.97 years.
Those who were 25 years old in 2022, could expect to be working for an additional 29.92 – 33.19 again depending on the employment rate used in the calculation. For 50-year-olds the rage varied from 11.01 to 12.18 years. Those who were 60 in 2022, had a statistically calculated working life expectancy of 3.4 to 3.72 years.
In the course of their working life, an 18-year-old in 2022 could expect to be unemployed for 3.6 years, a 25-year-old for 3.2 years, and a 50-year-old for 1.3 years.
Räisänen shows that since 2010, the working life expectancy has gradually increased for all age cohorts. A 25-year-old in 2010 could expect to work for a little over 28 years. In 2022, working life expectancy had increased to over 30 years as we mentioned before. For 50-year-olds the working life expectancy has risen from less than 10 years to over 11 from 2010 to 2022.
Gender differences
Räisänen compared working life expectancies and unemployment expectancies between women and men, and between different education levels. We’ll talk about gender differences first.
He shows that while there are significant differences in the life expectancies of women and men, there are smaller differences in the working life expectancies of men and women. A 25-year-old man in 2022 could expect to live for an additional 54.8 years. A woman of the same age could expect to live for an additional 59.9 years. The difference is 5.1 years. If we look at the working life expectancies of these two examples, the difference is only 0.9 years. A 50-year-old man in 2022 could expect to work for an additional 10.8 years whereas a woman could expect to work for 11.7 additional years.
There are also differences in unemployment expectancies. An 18-year-old man entering the labor market in 2022 could expect to be unemployed for 4.1 years during their working life. A woman of the same age could expect to be unemployed for 3.1 years.Â
Next, we’ll discuss why the report shows that it in Finland pays off to study.
It pays off to study
In the report, Räisänen looks at working life expectancies and unemployment expectancies for three different educational groups. In the first group are those who only have a basic education and those whose educational level is unknown. Those with a secondary education are in the second group. In the third group are those with a higher education. His analysis shows that there are significant differences in the working life expectancies and unemployment expectancies between these groups.
His analysis shows that the employment rates of those with a higher education remain over 80 % for almost the entire duration of their working lives. For those with only a basic education, the employment rate stays under 60 %. The employment rate of those with a secondary education is closer to those with a higher education.
Conversely, the unemployment rate of those with only a basic education remains significantly higher than for either of the two other groups. When it comes to unemployment, each additional step up the education ladder lowers the unemployment risk significantly.
Statistically, 18-year-olds with only a basic education can expect to work for about 23 years. Factoring in education, the working life expectancy rises to 34 years for those with a secondary education. It rises further to above 38 years for those with a higher education.
An 18-year-old with a basic education can expect to be unemployed for 6.8 years during their working life. Secondary education lowers the unemployment expectation to 4.1 years. Higher education lowers it even further to 1.8 years.
So, this is additional proof that, in Finland, it pays off to study!
Our Starting in Finland Kit includes 3 courses on living and working in Finland. They’ll get your new life in Finland to a good start. As a bundle, you’ll get 20 % off their original price. The bundle is now available in our online store.
The mission of Finnwards is to help internationals thrive in their life abroad. We provide coaching, consulting, and training services that help them do just that. Check out our Services for Businesses and Organizations or our Expat Inspiration Catalog for more information! While we serve internationals and their employers all over the world, our specialty is Finland. With our help, internationals can build a uniquely Finnish life for themselves and their family. In addition to the coaching, consulting and training services, we also offer a wide selection of self-guided online courses about Finland. Contact us and let us help you or your employees succeed in their professional and private lives abroad and in Finland.
- Most common jobs for foreigners in Finland - August 29, 2024
- Skills recognition and learning at work in Finland - April 18, 2024
- It pays off to study – a glance at expected career lengths in Finland - April 4, 2024
