Emily Farchy: Integration is slow and uneven, but the Nordics have reasons for optimism

Senior Economist Emily Farchy at the OECD last examined the Nordic countries’ integration policies ten years ago. At that time, there was considerable enthusiasm for new ideas on how to make integration work.

– It was about finding the right policies: work first, and moving language learning in tandem with contact with the labour market. Resources were directed at integration, and everyone was very optimistic, she recalls.

Returning ten years later, Farchy sees that the general narrative has shifted.

– The contrast is stark. There is a lot of pessimism in the political dialogue and in public attitudes to integration.

At the same time, she argues that a snapshot of the data across OECD countries suggests that, given the well-known challenges in the Nordic region, the outcomes are quite strong. It is also unrealistic to expect immediate results from integration efforts.

I think it’s a shame we’ve lost some of the enthusiasm we had ten years ago. A lot of the narrative these days is very negative, but there are signs that past investments are paying off. 

Similar structures – different contexts

Presenting new statistics at the conference “How is the second generation doing? Promoting integration of migrants and their families in the Nordic countries”, organised by the Nordic Council of Ministers together with The Ministry of Economic Affairs and Employment in Finland, November 2025 in Helsinki, Emily Farchy stressed that integration outcomes in the Nordic region differ substantially and must always be understood in context. 

All Nordic countries share comparable labour markets and social protection systems, as well as significant language gaps between the national languages and the languages spoken by many migrants.

Despite this shared foundation, Farchy emphasised that the countries differ in ways that are crucial for understanding their integration outcomes. The proportion of immigrants ranges from under 10 per cent in Finland to over 20 per cent in Iceland. The Nordics also have different migration histories, different compositions of their migrant populations, and different reasons why people move there.

Sweden, for instance, has a long-established immigrant population and a relatively high share of humanitarian migrants. Iceland, by contrast, has only recently experienced substantial immigration.

– In Iceland, the composition of migrants is dominated by free-movement migrants from within the EU, who arrive without some of the trauma and institutional differences that often cause integration challenges, Farchy explained.

Low- and high-skilled migrants face different obstacles

Many humanitarian migrants have low levels of education, which can contribute to long integration pathways. This is particularly evident in a Nordic context, where the native-born population is generally highly educated. 

– When examining employment rates, those born outside the EU, and many who arrived for humanitarian reasons, are less likely to find work. However, the employment rates of non-EU immigrants are not low in international comparison.

Emily Farchy emphasised that opportunities to upskill are widespread across the Nordic countries. Among those with limited formal education, many take part in adult education and training during the integration process.

At the same time, the Nordic region receives a relatively large share of highly educated humanitarian migrants compared with other countries. Yet many do not work at a level that matches their qualifications. Statistics show that, in particular, non-EU-born individuals in Norway, Iceland and Finland are frequently overqualified for the jobs they hold.

– We often bemoan the fact that integration processes take a long time, and the difficulties in bringing migrants into the highly skilled labour market. But it is important to consider not only the challenges facing low-skilled migrants. High-skilled humanitarian migrants also face obstacles, and overqualification remains a concern, Farchy said.

Many highly educated immigrants in Norway and Sweden seek formal recognition of their qualifications. In Finland, however, the perceived cost and complexity of the process discourage many from applying. 

Language is the key – and the Nordics have high language barriers

Emily Farchy observed that among young migrants and children of immigrant parents, the proportion who are not in employment, formal education or training (NEET) is relatively small in the Nordic countries compared with international averages. Where the region falls short is in language learning among migrants and their children, which can affect overall academic achievement.

– Language impacts both your learning and your reading ability. We often overlook language when discussing second-generation migrants, assuming they should speak it fluently because they were born here. 

However, this is not always the case. According to PISA results, second-generation youth still show lower language skills than peers with native-born parents. The disparities in reading scores are significant across all Nordic countries compared with EU and OECD averages. In Finland, the gap is the largest, largely because Finnish is a particularly challenging language for many to learn. 

– If your family does not speak the language of the country you live in, children are already falling behind their peers in school. Formal childcare services can play a very important role in preparing children, even those born in the country, to succeed throughout their educational careers, Farchy says. 

Aspirations shaped by the examples children see

Another factor influencing the integration of migrant children is their aspirations and perceptions. Despite significant disparities, female employment rates are relatively high in the Nordic countries compared with many other parts of the world, and this can have a positive effect on the children of migrants.

– Seeing their mothers work and realise that they can earn a living is very important for them.  

Negative examples, however, can have the opposite effect. When children observe that hard work does not necessarily lead to improved living conditions, their own aspirations and achievements may be affected. 

– When you see your parents working hard every day and still not making ends meet, still living in overcrowded housing and having to rely on benefits, it can be pretty disheartening. 

Text: Sebastian Dahlström, Foto: Frida Lönnroos 

Read the full report ”State of Immigrant Integration – Nordic countries” here: 

State of Immigrant Integration – Nordic countries | NVC