Occupational restructuring challenges competencies-project The economic integration of immigrants in urban and rural Finnish municipalities Occupational restructuring challenges competencies-project 31 August 2017 Erling Solheim Helsinki City

Background - Economic integration The economic integration of immigrants = the immigrant and his or her household are able to support him- or herself economically through employment In this presentation we will focus on employment, unemployment and non-employment (excluding a focus on social benefits or household income).

Background – economic and social change A very large increase in number of immigrants to Finland in recent years, and most settle in the largest municipalities The Great Recession starting around 2008 increased unemployment. The native population is more likely than before to take jobs previously considered entrance jobs for the immigrants with low education, or immigrants over qualified for the jobs they got Technological changes and automation increase demand for highly skilled well-paid jobs, and reduces the number of unskilled, low-salary jobs as well as medium-paid jobs

Analysis – FLEED register data We add new variables related to migration to the FLEED data base, managed by Statistics Finland This is a preliminary descriptive analysis We analyse men and women separately Working age 20-64 2005 to 2014

The dependent variable Our dependent variable has four categories, based on whether or not the individual was employed or unemployed in the calendar year. Employed only Employed and also unemployed Unemployed only Non-employed (neither employed nor unemployed)

Other variables Degree of urbanisation: 1) urban municipalities; 2) semi-urban; 3) rural Immigrant versus not immigrant Categories of country of origin (only former SU/Russia and ‘other countries’ (not top 30 or EU/EEA) shown in this presentation

Urban, semi-urban, rural Classification constructed by Statistics Finland Among the 20-64 years old, the natives have a distribution of 70, 16 and 14 percentages The immigrants vary from around 83-85, 6-9 and 7 percentages for former SU/Russia, Estonia and EU/EEA, to for example 95+, 4 and <1 percentages for Somalia

Results summary Among native men and women employment increases from rural to urban municipalities. Among the immigrants, the pattern is reversed for both men and women. Employment increases much among immigrant women over time, and more so in the semi-urban and rural areas. However, not for all countries in general. It is the ‘other countries’ (not top 30 among country of origin or the EU/EEA) that stand out in particular. (Among the 20-64 year olds this group is about the same size as former SU/Russia, Estonia, or EU/EEA, 15-20% of all immigrants.)

Policy implications Few immigrants settle in the rural and semi-urban municipalities, with 85-95% settling in the urban areas compared with 70% of the natives aged 20-64. However, some of those who live in the semi-urban and rural areas seem to have much better chances for economic integration. Do smaller municipalities succeed better at integrating immigrants? Are the migrants forced to be socially integrated when there are less immigrants (and segregation) in the municipality, and through social integration they increase their chance of becoming economically integrated? What do the immigrants, for example from Somalia and Iraq, know about the semi-urban and rural municipalities and what they can offer? Why do they not live there if they are unemployed and seeking employment? Is there less competition for jobs in semi-urban and rural areas that immigrants should explore to become employed? Should they be encouraged to move (incentives)?

Next steps in our research If an immigrant moves from rural to urban areas, or vice versa, do the chances of becoming employed or unemployed change in the following years? (Does rural employment give a permanent advantage within the labour market?) Are the factors affecting the probability of being employed versus unemployed the same in urban and rural areas? (Education, family type, years in Finland, active labour market policiess etc.) How does the number and proportion of immigrants, and the employment and unemployment level at the municipality level, affect employment and unemployment among immigrants?

Thank you! erling.solheim@hel.fi