More and more people live elsewhere but work in Helsinki

Working across the municipal boundaries of Helsinki became more common during the COVID-19 pandemic. However, working across municipal boundaries varies, for example, by occupational group. The nature of the occupation and the possibility to work remotely impact the choices that employees make regarding the location of their residence and workplaces, but overall, it seems that working in Helsinki is attractive for many people living both in and outside Helsinki.
Talvinen kuva, etualalla raitiovaunu, taustalla Rautatieasema.
In the light of the review, working in Helsinki seems to be attractive to many people living both in and outside Helsinki. Photo: Jussi Hellsten

Of those working in Helsinki, 42% lived outside Helsinki in 2022. On the other hand, 24% of the employed living in Helsinki worked outside Helsinki. Working across the municipal boundaries of Helsinki became more common during the COVID-19 pandemic, but the prevalence varies somewhat by gender, age, employer sector and occupational group. 

These observations can be found in a research article published by the City of Helsinki that examines working across the municipal boundaries of Helsinki, as well as the migration of working people between 2010 and 2022. The article also looks separately at the occupational group of nurses. They are an example of, on the one hand, occupational groups whose work takes place mainly at the workplace and where the possibilities for remote work are limited, and, on the other hand, occupational groups who are suffering from a significant labour shortage.

Many people keep working in Helsinki even if they move elsewhere

In particular, many inbound moves of employed people to Helsinki seem to be related to the fact that their workplace is located in Helsinki. Nearly two-thirds of employed people who moved to Helsinki either worked in Helsinki before moving or started working in Helsinki after moving. On the other hand, many employed people in Helsinki seem to be moving out of Helsinki for reasons other than work: almost half of the working people who moved out of Helsinki are still working in Helsinki even after moving away.

Nurses work more locally than average

Occupational groups differ considerably in terms of how typical it is to live outside Helsinki but work in Helsinki or to live in Helsinki but work outside it. Both the location of the workplace and the nature of the occupation have an impact on this. The share of people living outside Helsinki of the people working in Helsinki was high, for example, among craft and related trades workers (55%) and managers (49%). 

On the other hand, the share of service and sales workers living elsewhere among those working in Helsinki was particularly small, 32%. Since, for example, the duties of service and sales workers are in many respects tied to the premises of the workplace, the length of the commute can be an essential factor for many people working in such professions when choosing their place of residence and workplace.

Nurses were examined separately in this research article. Just under 40% of nurses working in Helsinki lived outside Helsinki in 2022. In contrast, less than 10% of nurses living in Helsinki worked outside Helsinki. In this respect, their work appears to be more local than the average working population in Helsinki.

The importance of having a job in Helsinki is also reflected in the migration of nurses: about three out of four nurses who moved to Helsinki also worked in Helsinki after the move, and more than three out of five nurses who moved out of Helsinki had a job in Helsinki even after they moved away.

Working in Helsinki seems attractive to many

In the light of the review, working in Helsinki seems to be attractive to many people living both in and outside Helsinki. Many live elsewhere but work in Helsinki, some move away from Helsinki but still work in Helsinki, while others seem to move to Helsinki specifically for work. 

“From the point of view of the availability of workforce, Helsinki’s position seems strong, and the large commuting area of the Helsinki region seems to benefit jobs located in Helsinki. Despite this, there is a significant shortage of professionals in certain fields in Helsinki,” says Senior Researcher Laura Ansala from the City of Helsinki.

The importance of commuting and related costs depends on the nature of the profession

However, at the individual level, there is a complex decision-making process as the working people choose their place of residence and workplace, as observed in the study. Employees weigh, among other things, the salary they receive for their work in relation to the cost of housing in different regions as well as the costs related to commuting.

The importance of commuting costs is particularly significant in occupations where opportunities for remote work are limited, and the adequacy of income as a whole is likely to be emphasised especially in the decision-making of those working in low-paid occupations. In order to ensure the availability of labour, especially in these occupations, it is important to ensure that affordable housing options are also available within a reasonable distance from the jobs in Helsinki, and that the level of commuting costs – both monetary and temporal – remains moderate.