Labor Market Test Exemption Implemented for Applicants Transferring Sectors

---

At a Glance

• Since June 1, 2019, labor market test requirements no longer apply to foreign nationals who have worked in Finland for at least one year and are transferring to another sector.
• This is expected to improve the labor mobility of foreign nationals already in the labor market. Employers are also expected to benefit from an increased supply of labor although the overall number of employees impacted by the change is expected to be low.

---

The situation

The Ministry of Economic Affairs and Employment has announced that as of June 1, 2019, employees applying for a residence permit extension and are transferring to another sector are no longer subject to the labor market test.

A closer look

To qualify for the exemption, the foreign national must meet the below criteria:

• Must have been employed in Finland for at least one year under a Residence Permit for an Employed Person;
• Must be transferring to another sector; and
• Must have the proper professional qualifications for the sector in question.

 

The Employment and Economic Development Office will assess employment conditions to determine eligibility for the exemption.

Impact

• Employers. The removal of the labor market test in these conditions is expected to allow employers easier access to the labor market, particularly in sectors which have experienced labor shortages. However, the number of applicants affected by the change is expected to be relatively small, so the change may not address the labor shortages faced by all employers.
• Foreign nationals. The change should improve labor mobility for eligible foreign nationals in the labor market. The Ministry of Economic Affairs and Employment in Finland estimates that this change will only apply to a few dozen residence permit applicants per year. However, for these impacted individuals, this update represents a major change and will significantly improve their labor mobility.

 

Background

• Finnish trends. The change follows previously-implemented sector-specific labor market test waivers in Finland that targeted the construction and agriculture sectors.
• Regional trends. This is in line with other countries in the region which have also relaxed labor market tests to cope with labor shortages. For example, Poland waived labor market testing for shortage occupations last year, and the United Kingdom is considering removing the labor market test for sponsored workers when the new immigration system is introduced in January 2021. However, where labor shortages are not a concern, other countries in the region are introducing or restricting labor market requirements, such as Switzerland, which introduced labor market test requirements for occupations with high unemployment rates.

 

Looking ahead

If labor shortages do not improve sufficiently or if other countries such as the United Kingdom remove labor market rules, Finland may be encouraged to further relax rules relating to labor market testing.

This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].