The decline in the birth rate in Finland has been dramatic. Combined with the long-term migration and continued urbanization, this will create an equation that is difficult to manage.
More people are leaving the workforce than are entering it. This means that young people entering education and young adults reaching the age of choosing a career are represented by smaller age groups than ever before. In ten years, young year groups will be over 20% smaller than they are now. That is a huge change.
The phenomenon is also causing reflection on construction on many levels, and for good reason. On the one hand, in shrinking regions, properties lose their value and become a burden on both individuals and local governments. On the other hand, in growth centers, housing production is currently insufficient to meet future needs, and the threat is rising housing costs and declining availability.
Another consequence of demographic change is the difficulty of finding a job. Although the overall employment situation in the construction industry is not particularly good at the moment, a labor shortage looms on the horizon.
The experts lost due to the economic situation must be regained, but even that is not enough, as more than a third of the workforce will be reduced by retirement over the next 15 years.
The current turnaround in the birth rate to a fair increase would be visible in the labor market in a couple of decades. The change is too slow from a labor market perspective. The only way to keep the availability of labor in the sector at even the usual level is by increasing the number of international experts.
The construction industry has a long tradition of using international labor. About 20 percent of the total workforce is foreign, but only about a few percent of white-collar workers. That few percent must be increased so that the industry remains viable in the future. A small percentage indicates challenges, for example in terms of language skills. Now is the right time to develop conditions and practice change.
The number of international experts is being accelerated by the growth in the number of international degree students in our universities. Slightly more than half of the students are employed in Finland, so there is room for improvement here. Finland has a good reputation worldwide. Clean air and nature, safety, a functioning society, a fair working life, and a work-life balance are valued qualities.
The challenges ahead are related to the intensification of global competition, language skills and integration, and reception capacity. The skills shortage does not only affect us. Many European countries will be fighting for the same international skills. Will we be able to compete? And as competition intensifies, will we be able to bring our strengths to the table as a country and a society and make timely decisions that alleviate the skills shortage?
Language skills are essential for integration. Technically speaking, the language skills issue has been practically solved, as translation and interpretation services using artificial intelligence already work excellently. However, learning a language is important for understanding the culture and developing a sense of belonging. It may determine whether a person stays in Finland to contribute to the construction industry and society, or whether the grass looks greener in other countries.
Are our universities, businesses, and societies working together to make it possible for immigrants to become part of our society? Or are we leaving them in a situation where there are more walls going up than doors opening?
Roti 2025 brings together the views of over 100 experts on the state of Finland's built assets and their development needs.
The article was originally published in Rakennuslehti on October 29, 2025.
Saku Lehtinen
Leading expert
saku.lehtinen@rt.fi +358 40 041 2057Confederation of Finnish Construction Industries (CFCI)
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