Finno-Ugric Peoples and Early Settlement in Finland
The Finno-Ugric peoples, part of the larger Uralic language family, dominated two major settlement regions in what is now Finland. Those who arrived in southwestern Finland via the Gulf of Finland were the ancestors of the Hämäläiset (Tavastians), who settled mainly in the southern and western parts of the country, especially the historic region of Häme. Others came from the southeast, forming the roots of the Karelians.
Other ethnic groups related to the broader Uralic or Siberian regions include the Manchu-Tungus (such as the Evenk and Even), Finno-Ugric groups (like the Khanty and Mansi), and Mongolic peoples (notably the Buryat).
Early Inhabitants and Migration
Archaeological discoveries in a cave near Kristinestad, in southwestern Finland, suggest that the region may have been inhabited as early as 100,000 years ago. By around 7000 BCE, ancestors of the Sami were already present. Around 4000 BCE, new settlers—likely from regions that would become Russia, Scandinavia, and Central Europe—arrived, leading to the gradual movement of the proto-Sami northward.
Indigenous and Regional Populations
Today, roughly half of Finland’s Sami population resides in the Sami Homeland (Sámiid ruovttuguovlu), located in the northernmost part of Lappi (Lapland). In 1995, the Finnish constitution recognized the Sami as an indigenous people with the right to preserve and develop their own language and culture.
Language in Finland
Finland has two official national languages: Finnish and Swedish. Finnish is spoken by nearly 90% of the population and holds a strong cultural and nationalist significance. Swedish speakers are primarily located along the southern, southwestern, and western coasts, as well as the Åland Islands, where Swedish is the sole official language.
Russian, Estonian, and Sami are also spoken by small minorities. Of the eleven Sami languages, three are spoken in Finland: North Sami, Inari Sami (unique to Finland), and Skolt Sami. While Sami is not a national language, its status as a regional minority language is protected under the Sami Language Act (2004). Finland is considered exemplary in supporting its minority languages compared to many other multilingual nations.
Religion in Finland
Christianity reached Finland from both eastern and western routes by the 13th century. Today, Finland is one of Europe’s most religiously homogeneous countries. Most Finns belong to the Evangelical Lutheran Church, which shifted from being a state church to a national church during the 19th century. The archbishop resides in Turku.
A small portion of Finns are members of the Orthodox Church of Finland, which gained independence from Moscow in 1920 and came under the jurisdiction of the Patriarch of Constantinople in 1923. The church’s archbishop is based in Kuopio. Other religious minorities include Pentecostals, other Protestant groups, Roman Catholics, Jews, and Muslims—the latter two having established communities in the 19th century when Finland was part of the Russian Empire. Finland officially recognized its first Islamic congregation in 1925, making it a pioneer in Europe in this regard.
Settlement and Urbanization
Modern industrialization has driven urban growth, and by the early 21st century, over 80% of Finns lived in urban areas. Agriculture is concentrated in the meadowlands of the southwest, ideal for mixed farming, while northern Finland focuses more on small-scale dairy farming and forestry. In Lapland, some still practice reindeer herding, a traditional nomadic livelihood.
Most cities are located in the southern third of the country, particularly along the Gulf of Finland and the Gulf of Bothnia. The capital, Helsinki, is the largest city, followed by Tampere and Turku. In the north, Rovaniemi, the capital of Lapland, is the most significant urban center.
Geographical Regions of Finland
Finland is divided into three main geographic regions:
Coastal Plains – Stretching along the south and west, these lowlands are fertile and densely populated. This area also includes the Turun archipelago and other offshore island groups such as those near Vaasa.
Lake District – The central heartland of Finland, known for its thousands of lakes and forested areas. Historically less influenced by outside cultures, this region has grown more industrialized since World War II.
Highlands and Lapland – Covering the northeast and north, these are Finland’s least developed areas. Known as “colonial Finland,” these regions are central to reindeer herding and Sami cultural life.
The Åland Islands
The Åland Islands are geographically and culturally distinct from mainland Finland. Entirely Swedish-speaking, the islands are autonomous, with their own parliament and flag. While fishing occurs, farming, particularly fruit cultivation and mixed agriculture, is more common. The capital, Mariehamn, is the only large town in the archipelago.
Demographic Trends
Until the 1990s, Finland experienced more emigration than immigration, with Sweden being a primary destination for Finnish emigrants. After World War II, hundreds of thousands of Finns left the country, while immigration remained minimal due to restrictive government policies. Since the 1990s, however, Finland has shifted to net immigration. This change resulted from growing national prosperity, the collapse of the Soviet Union, and more liberal immigration and asylum policies. Immigration increased notably, with most newcomers arriving from Russia, Sweden, Estonia, and Somalia. Since the 1950s, internal migration has steadily favored larger towns and cities.
Economy
Finland’s economy is rooted in private enterprise, though the government plays a leading role in some sectors. Post–World War II, Finland transitioned from an agrarian economy to one focused on industry and later to services and technology. Rapid growth in the 1980s was driven by strong trade ties with both Eastern and Western Europe. However, the 1990s brought recession, mainly due to the Soviet Union’s collapse and a general European downturn. Recovery began in the mid-1990s, with trade shifting toward Western Europe.
Unemployment, low until 1991, spiked to nearly 20% by 1994 before gradually declining. Finland has been part of GATT since 1949, joined the OECD in 1969, and became a full member of the European Union in 1995 after leaving the European Free Trade Association.
Agriculture, Forestry, and Fishing
The agricultural workforce has steadily declined, and most Finnish farms are small. Since the 1960s, Finland has been self-sufficient in basic foodstuffs, with surplus production in eggs and dairy. Bread grain is usually imported, while fodder grain is exported. Animal husbandry focuses on dairy cattle, pigs, poultry, and reindeer. Fur farming, especially fox and mink, is a major export industry.
Agriculture is heavily subsidized, particularly for farmers north of the 62nd parallel, due to negotiations within the EU’s Common Agricultural Policy.
Forests cover about 75% of Finland, and private owners control most of them. Despite rising production costs, forest products—especially paper—remain key exports. Commercial fishing has declined, impacted by pollution and damming. Fish farms now play a major role in maintaining fish stocks.
Resources and Power
Forests are Finland’s primary natural resource, with sustainable management practices preventing depletion. About one-fifth of Finland’s energy comes from wood, mostly industrial waste. Peat covers a third of the land but is rarely used on a large scale. Finland has modest mining activity; iron is the main industrial metal, with nickel, zinc, and copper also important. The country lacks coal and oil and relies on imports for fossil fuels.
Finland has high per capita energy consumption due to its cold climate and energy-intensive industry. Hydroelectric power is significant, supported by dams in the north. Nuclear power supplies about a quarter of the country’s electricity, with wind power slowly growing, especially along the coast.
Manufacturing
Harsh winters and remote geography limit industrial development, but Finland has overcome these challenges. Manufacturing surpassed agriculture and forestry in employment by the mid-1960s. Forest products are still crucial, evolving from tar and timber to paper and furniture. Postwar reparations to the Soviet Union spurred the growth of heavy industry, which later thrived in Western markets.
Today, technology is the largest industrial sector. Finland excels in shipbuilding, machinery, chemicals, and biotech. IT and telecommunications, led by firms like Nokia, became especially important in the late 20th century. Other industries include textiles, ceramics, glass, beverages, and food products, including functional foods.
Finance
Since 1980, Finland’s financial system has become more market-driven. Foreign banks began operating in the 1980s, with full access granted by 1991. The Bank of Finland, established in 1811, is part of the European System of Central Banks. The euro replaced the markka in 2002. Electronic banking is common, and the Helsinki Stock Exchange opened to foreign investors in the 1980s.
Trade
With a small domestic market and limited natural resources, Finland relies heavily on international trade. The loss of the Soviet Union as a trade partner in the 1990s led to a pivot toward the EU. Major trade partners now include Germany, Sweden, the Netherlands, China, the U.S., and Russia.
Exports include paper, wood, machinery, and electronics. Imports consist largely of raw materials, consumer goods, and fuels.
Services
Government services make up a third of the service sector, though private IT and business services are growing faster. The service sector’s GDP contribution remains smaller than in many other European countries. The Finnish government supports regional development with grants, loans, and R&D investment, including through the Finnish Funding Agency for Technology.
Labour and Taxation
About two-thirds of Finns work in the service sector, followed by manufacturing, with very few in agriculture. Women have one of Europe’s highest employment rates and are more likely than men to work full-time and join unions. However, wage disparities persist, with women earning about 70% of what men make.
Finland has high income taxes, especially on higher earners, and one of the EU’s highest value-added tax rates. Excise taxes on fuel, cars, alcohol, and tobacco are high, while those on essentials like food and medicine are lower.
Transport and Telecommunications
Until the mid-20th century, Finland’s geography hindered internal transport. Ports on the Gulf of Finland and Gulf of Bothnia reflect a legacy of Swedish rule. Navigable waterways are extensive, though less used for timber transport today. Finland operates its own merchant marine and ferry services to neighboring countries.
A good road network covers most of the country, although roads are sparse north of the Arctic Circle. The rail network, mainly state-owned and partially electrified, links to Russia. Finland’s only subway system is in Helsinki. Air travel is centered around Helsinki’s international airport, with additional domestic airports across the country.
Finland is a global leader in telecommunications and IT. By the early 21st century, it had among the world’s highest per capita rates of mobile and internet use.
Government and Society
Finland became a republic in 1919. Legislative power is held by a unicameral parliament and the president, who also chairs the cabinet. The president appoints the prime minister, can dissolve parliament, and leads foreign policy and the military. Laws passed by parliament must be signed by the president, but the parliament can override a veto in the next session.
Local Government
Finland is divided into 19 regions (maakunnat), including Åland, an autonomous region with its own parliament and flag. The old provincial system (läänit) was replaced in 2010. Six regional administrative agencies support local governance, particularly in public services and environmental protection. Over 300 municipalities manage local affairs, most with fewer than 10,000 residents.
Justice System
Finland’s judiciary is independent. Local and district courts handle most cases, with appeals going to one of six courts of appeal. The Supreme Court appoints judges and acts as the final legal authority. Administrative matters go to the Supreme Administrative Court. The chancellor of justice and solicitor general oversee legal integrity and public complaints.
Politics
Finland has universal suffrage from age 18. The president is directly elected, with a runoff if no majority is reached in the first round. Parliament is elected through proportional representation, resulting in a multiparty system. Major parties include the Social Democrats, National Coalition, Centre Party, Left-Wing Alliance, and Greens. Minor parties include the Swedish People’s Party and the populist True Finns. Women have been central to Finnish politics since 1906 and have held top national leadership roles.
Security
Following the Treaty of Paris in 1947, signed with the Allied Powers after World War II, Finland was authorized to maintain a military force consisting of 34,400 army personnel, 3,000 air force members with up to 60 combat aircraft, and a navy of 4,500 individuals operating ships with a total displacement of 10,000 tons. Changes in Russia, the European Union, and the North Atlantic Treaty Organization (NATO) at the turn of the 21st century have significantly influenced security and stability in northern Europe, particularly in Finland’s surrounding regions. The accession of neighboring Baltic states—Estonia, Latvia, and Lithuania—to NATO is widely regarded by Finns as a stabilizing development. Military service is mandatory for all Finnish men aged 17 to 60, though those who object on moral or religious grounds can fulfill a civil service alternative.
Law enforcement falls under the jurisdiction of the Ministry of the Interior. Municipalities contribute financially to support the state-run local police forces.
Health and Welfare
Finland offers comprehensive public health services through a network of local health centers, which provide free medical treatment. While private healthcare providers are also available, most residents rely on the public system. The country is organized into hospital districts, each anchored by a central hospital operated by intermunicipal partnerships. These are supplemented by smaller regional hospitals and a limited number of private facilities. Patients are responsible only for a modest daily fee during hospital stays, and the government reimburses most prescription medication costs. Renowned for their robust health and love of sauna culture, Finns enjoy one of the highest life expectancies globally.
The Finnish social security system includes a wide range of benefits such as pensions, healthcare, unemployment assistance, and family support programs. The government provides disability and old-age pensions, with eligibility for the latter beginning at age 65. These benefits are funded through a mix of individual contributions, employer payments, and support from both local and national governments. Additionally, the Central Pensions Security Institute manages an earnings-based pension scheme, which also covers farmers and self-employed individuals. The National Board of Social Welfare oversees services for the elderly, including social and recreational centers. Other social benefits include unemployment insurance, compensation for work-related injuries, maternity benefits, and family allowances for children under 16.