Rivermate | Finland flag

Finland

Comprehensive Country Overview

Explore the geography, history, and socio-economic factors shaping Finland

Country description

Finland, a Nordic country, is located in the northeastern part of the Fennoscandian Shield within the greater European continent. It shares borders with Sweden, Norway, and Russia, and is surrounded by the Baltic Sea and its gulfs. The country is heavily forested and contains approximately 56,000 lakes, numerous rivers, and extensive areas of marshland, making it Europe's most densely wooded country. The terrain is varied, including low-lying coastal plains, gently rolling central lowlands, and the hillier uplands of the northwest. One-third of Finland lies north of the Arctic Circle, resulting in a severe climate with long, dark winters and short, mild summers where the sun may not set for weeks in certain areas.

The earliest ancestors of the Sami people likely arrived in Finland around 7000 BCE, with the ancestors of the Finns arriving later. Finland spent centuries under Swedish rule, followed by a period as an autonomous grand duchy within the Russian empire from 1809. Finland declared independence in 1917 after the Russian Revolution. It faced Soviet aggression during World War II but fiercely defended its sovereignty. Post-war Finland developed a neutral foreign policy while maintaining close Nordic ties. In 1995, Finland joined the European Union, adopting the euro as its currency in 2002.

Finland is a highly developed nation with a robust social safety net and a strong emphasis on education and equality. Its economic model often blends free-market capitalism with government interventions to ensure social well-being. Forestry remains important, while Finland is a global leader in technological innovation, particularly in telecommunications and software development. Finnish design and manufacturing are renowned for their quality, functionality, and minimalist aesthetics. Finland consistently ranks as one of the happiest countries in the world, due to factors like high standards of living, excellent social services, and a strong sense of community.

Saunas hold deep cultural and historical significance in Finland. They are a place for physical and mental cleansing, social bonding, and even major life events like giving birth in bygone eras. The Finnish people are known for their stoic determination, resilience, and grit in the face of adversity, a trait strongly linked to their national identity. Finland has a rich artistic legacy, including literature, architecture, design, and music. The national epic, Kalevala, has had a deep impact on Finnish identity. Renowned figures like Alvar Aalto and functionalist design that combines beauty and practicality are celebrated in Finnish architecture and design. From composer Jean Sibelius to thriving modern metal scenes, music plays an important role in Finnish life.

Workforce description

Finland's workforce is well-educated, highly skilled, and adaptable.

Demographics

The population of Finland is aging, similar to many developed nations. However, this is mitigated by immigration and policies promoting longer working lives. Women in Finland have one of the highest labor force participation rates in the OECD. While the workforce is predominantly native Finns, it is becoming increasingly diverse, with a rising presence of international workers and those from immigrant backgrounds.

Skill Profile

Finland's education system is consistently ranked among the world's best, resulting in a population with strong foundational skills, a high level of tertiary (college/university) attainment, and an emphasis on lifelong learning. The country excels in STEM fields, fostering a workforce with valuable technical skills in sectors like software development, engineering, and science. Finnish workers are known for their problem-solving abilities, adaptability to change, and openness to innovation, which are essential in a rapidly evolving global economy.

Sectoral Distribution

Like most advanced economies, the services sector constitutes the largest share of employment in Finland. Key areas include business services such as consulting, finance, and information and communications technology (ICT), public services like healthcare, education, and social welfare, and trade, hospitality, and tourism.

Finland also retains a strong industrial base, particularly in forestry and paper, technology manufacturing, and machinery and metal products. Agriculture employs a smaller percentage of the workforce compared to history, but remains important, with a focus on efficiency and sustainability.

Cultural norms impacting employment

In Finland, there is a strong emphasis on maintaining a healthy balance between work and personal life. Flexible work arrangements, ample vacation time, and respect for family commitments are common. Extended working hours are uncommon and usually discouraged, with a focus on efficiency and productivity during standard working hours. In many workplaces, shortened workdays on Fridays during the summer are a common perk.

Finnish communication styles are generally direct and straightforward, favoring clear, concise, and honest communication. They avoid unnecessary embellishments or small talk. Finnish communication often emphasizes practicality and avoids overly emotional or enthusiastic expressions. Silence is not considered awkward in Finnish communication and can be a space for reflection and careful consideration before speaking.

Finnish workplaces usually have relatively flat organizational structures with less emphasis on strict titles or formalities. Employees at all levels are often encouraged to contribute to discussions and decision-making processes. While rank is de-emphasized, expertise and experience are highly valued. Subordinates often approach supervisors for guidance but aren't afraid to share their own opinions.

Key industries and employment sectors

Finland's technology sector is globally recognized for its innovation in areas such as telecommunications, software, gaming, and cleantech. Major players in this sector include Nokia, Rovio (creators of Angry Birds), and Supercell.

Forestry and Paper

The forestry sector remains a significant economic pillar in Finland. The country boasts extensive forest resources, which drive industries like pulp, paper, and wood products manufacturing.

Metal and Engineering

Finland has a long tradition of excellence in metal production and engineering. This sector encompasses machinery manufacturing, shipbuilding, and electronics.

Services

The service sector is the largest contributor to Finland's GDP. Key areas in this sector include wholesale and retail trade, public services (healthcare, education), finance and insurance, and transportation.

Emerging Sectors

Bioeconomy and Circular Economy

Finland is a frontrunner in developing sustainable solutions, with a focus on bio-based materials, resource efficiency, and waste minimization.

Healthcare and Wellbeing

An aging population and investment in healthcare innovations fuel the growth of this sector, which includes areas like medical technology and digital health solutions.

Gaming and Entertainment

Finland's vibrant gaming industry continues to expand, showcasing international success stories in mobile gaming.

Rivermate | A 3d rendering of earth

Hire your employees globally with confidence

We're here to help you on your global hiring journey.