The Northern Finland Program, prepared under the leadership of the Finnish government and published in early February, is an assessment of how to fully utilize the region’s potential. The program is designed primarily from the perspective of economic growth, regional vitality, investment acceleration, skills development, and labor availability. Additionally, it considers the perspective of young adults and especially students by highlighting the importance of study and job opportunities in the region while acknowledging the challenges related to housing. The Northern Finland Program appears to be a positive and promising starting point for improving the situation of young people living and studying in the region, but not without reservations. 

Future investments require labor and high-quality expertise. It is estimated that by 2035, 80% of new jobs will require a higher education degree. The Finnish Ministry of Education and Culture’s Education Policy Report (2023) aims for 50% of each age group to complete a higher education degree by 2030. To ensure that Northern Finland meets its need for skilled professionals, strategic foresight, additional resources, and funding for study places are required. Educational policies must consider the region’s specific needs so that the education system produces professionals across all levels with the necessary resources and capabilities. In addition to degree programs, there is also a demand for supplementary and continuing education. Increasing study places would only be the first step toward raising the educational level, and as students, we are concerned about maintaining the quality of education if study places are increased without sufficient additional funding. 

The availability of skilled labor is a particular challenge for Northern Finland. Additionally, the current workforce is decreasing, particularly due to retirement, and as birth rates decline, greater emphasis must also be placed on attracting international professionals. A pleasant living and working environment, functional housing markets, and accessible basic services contribute to talent retention in the region. Moreover, world-class, advanced research, development, and innovation (RDI) environments and ecosystems are key attractions for skilled workers. High-quality expertise is also critical for Finland’s and Northern Finland’s success. RDI activities play a decisive role in renewing industries, improving productivity, and creating well-being. Nationally, Finland aims to increase research and development (R&D) spending to 4% of GDP by 2030. Attention must also be paid to incentives that encourage students and international specialists to remain in Finland and in Northern Finland for employment. 

We view positively the Northern Finland Program’s goal of conducting a study on various support measures that could influence students’ decisions to move to or work in Northern Finland. This study should assess the feasibility of a temporary regional student loan compensation program, modeled after the Norwegian system, as a pilot and research project in Northern Finland. However, the study should also present alternative measures to regional student loan compensation and evaluate their costs and effectiveness. Additionally, the real impact of student loan compensation on retaining people in the region must be examined. There is concern that individuals might leave the area immediately after receiving the compensation, failing to create long-term regional benefits. 

A significant concern among young people is whether funding for regional student loan compensation would come at the expense of other student welfare resources. Following recent severe budget cuts, students will not accept further reductions. Loan forgiveness alone is not enough to keep students in the region it is only a starting point. The more influential factor is the lifestyle and career opportunities available after graduation. To retain students, employment opportunities that are meaningful and provide career progression in Northern Finland must be ensured. 

Furthermore, the Northern Finland Program currently excludes other incentives used in Norway, which should be considered alongside loan compensation. These include tax benefits, reduced employer contributions, lower electricity prices, and increased child benefits for those relocating from the South to the North. An effective and lasting retention strategy requires a combination of various incentives, rather than a single, one-time initiative. 

We must also find more effective ways to integrate and employ international students and skilled professionals in Northern Finland’s labor market. According to the Finnish Student Union’s upcoming “At What Cost?” (2025) study, only a portion of international students succeed in securing permanent jobs or internships in Finland. The most common obstacles to employment include a lack of open positions in their field, high competition for jobs, and the need for proficiency in the local language. One potential solution would be the creation of an international student trainee program to support regional companies and universities. Under such a program, businesses could receive temporary benefits, such as relief from social security contributions for two years, when hiring an international specialist who has graduated from a Finnish university. 

We support the proposal to develop and implement a Northern Housing Program to enhance the region’s attractiveness for investment. If students, young people, and skilled workers do not have a suitable place to live, they will neither stay nor move to the region. Housing challenges in Northern Finland have been widely discussed in the media recently, but no clear, unified solution has been presented. 

Encouragingly, Northern Finland is seen as a desirable place to live. As Laura Kokkonen notes in her book The Call of Northern Finland: Those Who Moved to Lapland (2025), “For many, the closeness to nature and the changing seasons are important.” Additionally, “One in five Finns dreams of moving to Lapland.” A comprehensive study on housing programs and innovative housing solutions is essential to ensuring long-term regional retention. 

Prioritizing the interests of young people and students in Northern Finland benefits the entire region. The Northern Finland Program’s focus on economic growth, regional vitality, investment acceleration, skills development, and labor availability is directly linked to high-quality education and student well-being. Investing in students and young people is an investment in the region’s future development. 

More information:
Alexandra Aho
Vice-chair of the Board
Student Advocacy Representative
alexandra.aho(at)lyy.fi