Toni Ahvenainen and Markku Mattila discuss the challenges faced by Ukrainians in the labour market of South Ostrobothnia, Finland. Their blog post highlights geographical dispersion, language barriers, and the precarious nature of employment, while emphasizing the potential of skilled Ukrainians as catalysts for regional development. It argues for a shift toward a skills-based immigration approach to enhance both the integration of Ukrainians and the economic vitality of the region.
The challenge of labour market integration lies in the geographical dispersion
As the war drags on, the employment of Ukrainians has become an increasingly pertinent issue in those countries which have received them. Within the EU, one of the key challenges regarding labour market integration has been the arrival of Ukrainians in various countries through a spontaneous, largely unplanned and rapid exodus. The placement of Ukrainians has not been guided by the drivers of ‘normal migration’, such as selecting a destination based on available employment opportunities or personal preferences.
The geographical dispersion of Ukrainians creates an imbalance between the professional skills of newcomers and the employment opportunities in receiving areas. For example, highly educated individuals from large cities in Ukraine have ended up in rural areas. The discrepancy between skills and opportunities is particularly pronounced in rural areas, where the economic structure is one-dimensional, with jobs primarily in manual labour, agriculture, or basic industrial work. In cities, the economic structure is more diverse, making it easier for Ukrainians to find employment which matches their education and skills.
Case study from rural Finland: South Ostrobothnia
We examine the challenges of employment for Ukrainians in South Ostrobothnia, a rural province in Western Finland with a population of 190,000. The sole city of the region, Seinäjoki, has a population of 66,000. There are 17 other municipalities, with the smallest having a population of 1,200 and the largest of 20,000. The economic structure is focused on primary production and industry. South Ostrobothnia is one of the least internationalized regions in the country, with a foreign-background population of approximately 3.7% (compared to a national average of 9.7%). While our observations specifically pertain to South Ostrobothnia, similar challenges are likely to be encountered in other rural areas across the EU. However, national and regional differences in legislation and administrative arrangements in various countries introduce local nuances to the situation of Ukrainians.
Currently around 2,000 Ukrainians live under temporary protection in South Ostrobothnia. When viewed at the EU level, this number is small. It is also minor compared to the over 72,000 Ukrainians who arrived in Finland since the beginning of the full-scale invasion. However, at the local level this number is significant, especially considering the region’s limited internationalization and the constrained capacity of local public services. The number of Ukrainians in the region is, for example, greater than the population of some municipalities in the area. Overall, it accounts for about 1.1% of the province’s population.
Uncertain labour market position
Initially, the conditions for the labour market integration of Ukrainians in South Ostrobothnia appeared promising. Their starting situation differed significantly from earlier groups of humanitarian migrants in Finland. They did not have experiences of alienation caused by societal collapse and refugee camps. Instead, they were predominantly well-educated, motivated, and therefore prepared and ‘ready’ for the European labour market.
The labour shortage in the area also suggested that the region could offer ample employment opportunities. The province’s demographic challenges – such as an aging population and the out-migration of young people – hinted that there would be a significant need for additional labour. Most importantly, the local population welcomed Ukrainians warmly, offering them various forms of support.
Almost three years later, it is evident that the employment of Ukrainians has been difficult despite positive expectations, since only a minority have found work. In addition to weak employment figures, Ukrainians face insecure employment locally: contracts are short-term, often ending in voluntary resignations or terminations by the employer. Seasonal work in particular, which initially provided many with an immediate entry into the labour market, is no longer seen as a viable option for Ukrainians. The low wages from these jobs do not offer the purchasing power they had before the invasion when Ukrainian labour did seasonal work in the province and salaries were used for consumption in Ukraine. Thus, physically demanding and poorly paid seasonal work has become merely a transitional phase in labour market integration.
Many Ukrainians are seeking employment which matches their education and skills. However, their uncertain position in the provincial labour market means that they are practically forced to settle for low-skilled jobs. Alongside seasonal work and agricultural manual labour, this often translates into various roles such as home, hotel, and office cleaning. While there may not be a significant wage difference between these and seasonal or agricultural jobs, the cleaning jobs tend to be physically lighter and do not require substantial proficiency in Finnish. The most attractive jobs in the region are in manufacturing, which do not require advanced language skills but are often well-paid. This work is typically routine and may require basic skills, but it rarely demands high-level education or specialized expertise.
A promising start has turned into an uncertain position in the provincial labour market. Ukrainians are employed quite narrowly in only a few sectors, and their employment relationships are often characterized by short-term and fragmented contracts. As they end up in short-term positions in low-wage fields, Ukrainians cannot find jobs that match their education and skills, and they are unable to build a pathway to stable and sustainable employment in the province. This underutilization of human capital is detrimental in many ways, both for the Ukrainians themselves, for the province and for Finnish society.
Understanding the labour market problem
The uncertain position in the South Ostrobothnia labour market is linked to several factors. Employment is hindered by numerous mismatch issues and the province’s limited capacity to utilize international labour. More generally, inadequate language skills and various welfare traps adversely affect Ukrainians’ choices in the labour market.
The challenges in the South Ostrobothnia labour market can be explained by the following factors:
- A. Geographical labour market mismatch: Although Ukrainians are generally well-educated and professionally experienced, the rural economic structure of South Ostrobothnia offers them only limited job opportunities. Ukrainians can only be employed in low-skilled jobs, such as cleaning, gastronomy, and industry work, as well as supporting roles in the social services sector. This problem of labour market mismatch emerged because the war brought many Ukrainians to South Ostrobothnia who otherwise would not have chosen the region due to its limited job opportunities.
- B. Limited Regional Infrastructure for the International Workforce: The South Ostrobothnia region has limited internationalization and lacks sufficient infrastructure to integrate large numbers of foreign workers. This includes underdeveloped services for recognizing foreign qualifications, providing language support, and offering employment guidance, which further hampers the integration of Ukrainians into the labour market.It can already be anticipated that those Ukrainians remaining in the province after the war will likely form its largest ethnic minority group. The current uncertain status in local labour markets raises the question of what the position of this Ukrainian minority will be in the region. Will they remain permanently in low-paid and precarious jobs, or will they find their place in the regional labour market?
The situation of Ukrainians in South Ostrobothnia is not unique; it is likely that similar challenges will be faced in other European host countries as well. This is particularly relevant for regions like South Ostrobothnia, where the economic structures and labour markets are characterized by one-sidedness and limited internationalization. The receiving regions, their economic structures, and limited infrastructure and public services simply cannot quickly integrate large numbers of heterogeneous foreign labour into their labour markets, let alone do so in a socially sustainable manner. The challenges of labour market integration not only hinder the independence and participation of Ukrainians but also cause long-term economic, social, and societal impacts on the host regions and societies.
From Challenges to Opportunities
Although there are many challenges associated with labour market integration, Ukrainians represent primarily an opportunity for receiving regions. This is especially true in rural areas, which face demographic challenges related to a declining working-age population and weak internationalization. Ukrainians represent a new source of residents, international labour, skills, services, and consumption demand, as well as entrepreneurial activity for these regions.
Temporary challenges related to reception and labour market integration can be transformed into opportunities if they can be used to develop regional labour markets and their capacity to welcome international workers. Central to this opportunity perspective is that the integration challenges of Ukrainians should not be approached solely through refugee policies. Instead, labour market integration issues should consciously be seen as skills-based immigration policy and regional development issues. From this viewpoint, well-educated and motivated Ukrainians serve as a kind of ‘catalyst’ which can be utilized for the effective development of regions’ labour markets and economies. This represents a socially sustainable strategy and benefits the Ukrainians themselves, as the development of regional labour markets and internationalization ultimately ensures them a better position in those labour markets, even if this does not happen immediately.
Guidelines developed from the opportunity perspective could focus on the following areas:
- Accelerated Recognition of Qualifications and Skills: Regions should establish new skills fast lanes to expedite the recognition of qualifications and provide accelerated continuing education programs. The strategic goal would be to create new flexible training and service pathways that allow international workers to access labour markets more quickly, even if their degrees do not fully meet the standards of the host country. This could involve temporary work permits and competency certificates that would permit both Ukrainians and other international talents to work in specific fields under certain conditions while they continue to enhance their skills.
- Targeted Training and Customized Skills Pathways: The strategic goal should be to develop rapid training programs tailored for international workers in line with the region’s economic structure. The reception of Ukrainians can leverage tailored training programs that focus on quickly enhancing skills to meet the requirements of local labour markets. Through skills mapping, regions could create a picture of the skill potential of Ukrainians in relation to the area’s workforce needs. Thus, customized training programs aiming to systematically adapt those skills to the local labour market could be centrally designed.
- Language Training and Workplace Coaching: The strategic goal should be to address the challenges associated with limited language skills and to make labour markets more flexible. Language learning is a critical component of labour market integration. Regions should develop workplace-orientedlanguage training programs which Ukrainians can participate in while they are employed. Participating companies could be offered wage subsidies, training on managing diverse work environments, and assistance in combining work with language training.
- Strengthening Entrepreneurship and Start-up Culture: The long-term strategic goal should be to offer tailored services and guidance for international newcomers to start their own businesses in the region. Many Ukrainians possess an entrepreneurial spirit, and entrepreneurship can serve as an alternative to salaried employment. Regions should develop entrepreneurship programs aiming to provide support and guidance in recipients’ native languages. These programs could also include business mentoring, start-up funding, and opportunities to network with local businesses. This would enhance the economic landscape and internationalization of these regions.
The situation of Ukrainians is a humanitarian tragedy, and we must support Ukrainians in every possible way. At the same time, a unique opportunity to renew and develop European labour markets is also present. The challenges related to the labour market integration of Ukrainians in various European countries, whether in urban or rural areas, have clearly demonstrated that the labour markets of different countries are by no means institutionally ‘ready’. In the future the increasing demand for international labour will pose challenges in many countries. There is a need for greater flexibility and efficiency of labour markets, while on the other hand, countries require stricter regulations for the use of international labour.
This blog is based on two research projects whose publications are available online. Settlement of Ukrainians Receiving Temporary Protection in South Ostrobothnia and Resilientti Etelä-Pohjanmaa. The research data consist of semi-structured in-depth interviews. The number of in-depth interviews conducted with Ukrainians exceeds over 50, all of which were carried out by an interviewer of Ukrainian origin in Ukrainian or Russian according to the interviewee’s choice. The ethical research practices defined by the Finnish National Board on Research Integrity was followed as well as the guidelines of European Union’s General Data Protection Regulation.
The featured image was taken by Jukka Risikko.
