The average annual income level of Helsinki residents is clearly higher than the national average of that of most of the other major cities of Finland. In terms of salary income, Helsinki residents earn, on average, roughly €7,500 more per year than Finnish people on average. Of the country’s major cities, only Espoo has a higher income level than Helsinki.
The aforementioned information comes from a new research article published by the City of Helsinki that examines the income development of Helsinki residents and mirrors the changes in it against the development of the entire country and its largest cities.
Purchasing power decreased, particularly among residents with housing loans
From 2018 to 2023, the increase in average earned income was the most rapid in Helsinki. The 18 per cent increase rate exceeded the average rate of the entire country (16%) and the other major cities (12–15%).
Despite the aforementioned, the average purchasing power of Helsinki residents decreased due to inflation. However, the inflation did not affect all residents equally. In particular, the “personal inflation percentage” of Helsinki residents paying off large housing loans was higher than that of many others due to the multiplication of housing loan interest costs.
The high income level of Helsinki residents is explained by their level of education in particular
The differences between the cities in terms of the residents’ level of education and the cities’ industrial structure are factors that explain the income differences. Above all, the high income level of Helsinki and Espoo residents corresponds with their high level of education. For example, residents with a master’s degree comprised roughly 24–25 per cent of the population aged 15–64 in Helsinki and Espoo in 2023. The corresponding figure in Vantaa, Turku, Tampere and Oulu was 11–15 per cent.
Another factor contributing to the income differences is the city’s business structure. Helsinki and Espoo have a considerable quantity of well-paying jobs. Such jobs are provided in fields such as the information and communications sector, scientific and technical services, and the finance and insurance sector.
