The Evolving Landscape of Work in Finland
In Finland, the world of work has taken on a new shape since the pandemic. People are now logging approximately one million more remote workdays each week compared to pre-COVID times, marking a significant shift in how we approach our professional lives.
However, while working from home has become the norm, it comes at a steep price. Reports from Hufvudstadsbladet indicate that Finland’s service sector is facing annual losses estimated at a staggering 1.3 billion euros due to this shift in work culture.
Seizing Russian Assets
In a bold move on the international stage, this week the European Commission proposed utilizing frozen Russian assets to support Ukraine’s military efforts amid ongoing hostilities. Maaseudun Tulevaisuus has reported that the Russian state possesses a considerable portfolio of properties in Finland, raising questions about the potential for asset redistribution.
Thus far, Finnish authorities have confiscated Russian Federation assets valued at 36.1 million euros. This includes 38 shares in housing companies—primarily apartments in Helsinki—along with eight standalone properties and frozen bank accounts. Recent seizures involve apartments located on Melkonkatu and Ratakatu, appraised at 600,000 euros and 1.8 million euros, respectively. These properties were placed under the oversight of the Enforcement Authority last November, though no new confiscations have been recorded in 2023.
The Perils of Nepotism
The topic of nepotism has surfaced frequently in Finnish discourse, revealing concerns about the mingling of personal networks and professional integrity. Earlier this year, President Alexander Stubb’s son stirred controversy over his selection for a coveted summer internship at a think tank, bringing this issue to the forefront.
In a recent examination by Helsingin Sanomat, the focus shifted to the corporate sector. The paper disclosed that a senior manager at Kone, a well-known elevator manufacturer, attempted to facilitate a family member’s application for a summer internship. After official deadlines had passed, the Kone manager contacted Danske Bank—one of Kone’s major financial partners. This outreach resulted in an invitation for an interview for the applicant.
Ultimately, the prospective intern pursued a different traineeship, but Kone was quick to assert that such actions contravene their code of conduct.
The Cost of Remote Work
Remote work has undoubtedly become an ingrained part of daily life in Finland, but for the service sector, the financial implications are significant. With a weekly increase of about one million remote workdays, the effects can be felt across the restaurant industry, office real estate, and public transport.
A new study commissioned by the Hospitality Association Mara and the Confederation of Finnish Industries (EK) underscores the financial drain, estimating that remote work costs the service sector roughly 1.3 billion euros annually. However, Hufvudstadsbladet warns that these figures are broad estimates and should be interpreted with caution.
The economic repercussions have been most pronounced in the Helsinki Metropolitan area. Local lunch establishments alone are believed to have suffered losses up to 70 million euros annually due to the shift towards remote work. When considering the national scope, total losses reach around 275 million euros according to HBL.
As Finland navigates this evolving work landscape, the dichotomy between flexibility and economic impact continues to unfold, challenging businesses and individuals alike to find a sustainable equilibrium.