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Migration and Home Affairs

Investing in integration: Finland’s migrant employment project

The Integration SIB project promoted migrant employment in Finland by providing training and job placements. It began in Uusimaa and Southwest Finland, targeting labour-shortage sectors, and later expanded to other high-demand regions. 

  • Project
The image shows two shopkeepers smiling at the camera. Both of them are of African descent and are shown wearing aprons.

The project aimed to accelerate migrant employment in Finland through targeted training and job placement. It also sought to support integration, address labour shortages, and generate public savings via increased tax revenue. 

The project’s specific goals included securing jobs for 2 500 migrants, promoting integration through education and training, developing skills such as language and practical workplace abilities, and using innovative SIB financing, where repayment depends on successful employment outcomes. 

Who benefits

  • Migrants, many from non-EU backgrounds, gained access to training and employment that supported their integration into Finnish society. 
  • Employers received a skilled workforce, helping to address labour shortages. 
  • Investors earned returns based on the project’s success.
  • Wider society benefited from higher tax revenue and reduced reliance on public resources. 
  • The government saved costs by paying only for successful employment outcomes, making public spending more efficient. 

How it works

The project provided tailored training for migrants, focusing on vocational skills and language development aligned with employers’ needs in sectors facing labour shortages. Participants completed a short training period before being placed into jobs, with support for both employment and integration into Finnish society. 

Employers in manufacturing, construction and services hired migrants who demonstrated the required skills. Success was measured by the number of participants achieving long-term employment, and payments to the implementing organisation depended on these outcomes. 

The project has received funding from the European Investment Fund.

Project duration
1 Jun 2016 - 30 Jun 2019
Project locations
Finland
Project website
The Ministry of Economic Affairs and Employment of Finland
Topic
  • Employment and skills

Results

The Ministry of Economic Affairs and Employment stated that 2 217 migrants participated in the Integration SIB experiment, with 1 034 securing employment by September 2020. Over half of those who completed more than 70 days of training found jobs in sectors, such as logistics, construction and IT. 

Employment was also notable in the hotel and restaurant, cleaning, financial administration and manufacturing sectors. The training programmes, aligned with employer needs, played a key role in facilitating rapid labour market integration. 

The project demonstrated that individualised support and workplace-based language learning can significantly improve employment outcomes. 

Evaluation

Preliminary findings were considered promising, and a full external evaluation was launched to assess longer-term impacts on tax contributions and reliance on unemployment benefits. 

Published on 4 September 2024 by the Ministry of Economic Affairs and Employment, the report shows that the initiative had a positive impact on participants, significantly easing their entry into the labour market. The report indicates that participants contributed more in taxes and relied less on income transfers. 

The evaluation also sheds light on the success of the impact-investing model, pointing to personalised services, improved language skills, and stronger interaction between employers and job-seekers with helping participants break down barriers to employment.