The increase of starting study places is sparking a heated debate. Business students are particularly worried about what this means for their employment prospects. On November 25th, Professor Mika Maliranta, Director of the research institute Labore – The Labour Institute for Economic Research – told Helsingin Sanomat that increasing study places is the key to economic growth. So, where do I stand on this issue as an education policy expert?
It is completely understandable that students are concerned. When thousands of applicants compete for just a handful of summer jobs at local bank branches, or when even getting a trainee interview feels impossible, it is easy to feel like something needs to change.
Last summer’s survey on summer jobs showed that business students struggled more to secure work, which has already caused anxiety for the upcoming summer. Students begin worrying about summer employment as early as November.
Who Decides on Study Places?
Raising the national level of education is one of the government’s main goals, and the importance of education for economic growth is clear. During this government’s term, Minister of Science and Culture Sari Multala has allocated additional funding for new study places in fields like medicine, early childhood education, and nursing. However, there have been no equivalent increases for business studies, though universities and faculties have independently increased places, particularly in international programs.
Universities have the autonomy to decide how many students they admit. Even if politicians allocate funding for new spots, the final decisions are made by the universities and their faculties.
Students can influence these decisions by applying to become student representatives (known as hallopeds) in university decision-making bodies or by directly reaching out to them. Unfortunately, there is often little competition for these roles, and it’s a shame when students aren’t represented at important meetings. These topics can seem unfamiliar and complex to student representatives since university policies are tricky. That is why we, Suomen Ekonomit, provide annual training on these issues for student advocates and representatives.
Indicators Affecting Starting Place Numbers Unchanged
At Suomen Ekonomit, we focus on influencing education policy. As such, the number of study places remains a key concern for us. Our advocacy work is always grounded in facts, and employment data is an indicator we monitor closely.
Currently, only a small percentage of Ekonomit – business graduates – under the age of 30 are receiving unemployment benefits. This trend has remained stable for quite some time now. This means that the labour market is still nicely absorbing business graduates. Plus, salary developments have also been favorable. In addition, we regularly monitor the perceived quality of business education through our recent graduate surveys: the ratings have been good.
To summarize, indicators are stable. Hence our position has not changed: any increase in business study places should be done with careful considerations.
When discussing study places, people often mention the Finnish Medical Association’s strict policies – they have advocated against increasing the number of study places in previous years. However, their arguments are based on very different circumstances. Training doctors is several times more expensive than, for instance, business education. Plus, medical studies involve learning to save lives, which naturally makes education providers cautious about changes.
Will Next Summer Look Brighter?
If we focus on individual jobs, there is always fierce competition for the most sought-after positions and “top roles,” regardless of how many people graduate. These positions are always tough to secure.
The general employment situation has been challenging, but Elias Erämaja, our Chief Economist, is optimistic that economic trends will improve by next summer. He believes that with the economic downturn ending, the coming summer will already look much brighter.