Trans people’s employment and access to the labour market

Key findings:

In Finland, a number of trans organisations collectively carried out two surveys on the working life conditions of trans people, one in 2016 and one in 2020. The results are summarised in the report Sukupuolivähemmistöjen kohtaaminen työelämässä (Swe: Att bemöta könsmångfalden i arbetslivet; Addressing gender diversity in the labour market]). In 2015, the Equality Act was reformed in Finland, and a ban on discrimination based on gender identity and gender expression was introduced. The surveys aimed to explore trans people’s experiences of discrimination and support in working life and any changes that had occurred after a few years of the reformed law coming into force. The respondents’ employment was also studied (Saloheimo, 2021). Compared to the 2016 survey, unemployment had decreased slightly both in absolute terms and compared to the general population. The unemployment rate among respondents was 17% in 2020, roughly twice that of the total population in Finland. Another Finnish study conducted during the same period showed similar findings, with 18% of transmasculine and 15% of transfeminine respondents reporting being unemployed (Lehtonen, 2022).

In the Swedish study Hälsan och hälsans bestämningsfaktorer för transpersoner (Health and health determinants of trans people; 2015), one in four of the trans respondents was unemployed or received sickness benefit. This is a significantly higher proportion than in the general population (Public Health Agency of Sweden, 2015). A Swedish report from the Swedish Agency for Youth and Civil Society (MUCF), which examined young LGBTI people’s experiences of working life, showed that young trans people (and young non-heterosexual people) experienced involuntary long-term unemployment to a greater extent than young cisgender people and young heterosexual people respectively. Young trans men experienced a greater level of unemployment than young trans women and young cisgender men (MUCF, 2017).

In Iceland too, unemployment among trans people is estimated to be significantly higher than in the general population. According to the Icelandic LGBTI umbrella organisation Samtökin ’78 and the trans organisation Trans Island, it is estimated to be about 20%, compared to 7% in the general population (Cowi, 2010). An Ice­landic survey on the situation for LGBT people in the labour market, Hinsegin fólk á vinnumarkaði (Swe: Queera personer på arbetsmarknaden, NIKK translation; Queer people in the labour market; Zoega, 2023), was produced by Statistics Iceland and the University of Iceland on behalf of BHM, an Icelandic trade union for academics. It found that 70% of the trans people in the study had been unemployed at some point in their careers, compared to 42% of cisgender LGB people.

The Danish report Kortlægning af homo- og biseksuelles samt transpersoners levevilkår og samfundsdeltagelse (Mapping the living conditions and social participation of gay, bisexual and trans people; 2022) also shows that trans people are less likely to be in paid employment than cisgender people. The sample included people aged 25-54; among those who were cisgender, 87% were in paid employment, including self-employment, as opposed to only 52% of those who were trans (binary and non-binary). This difference is statistically significant. The report showed that there is a particularly large difference between cisgender women and trans women, with almost twice as many cisgender women (85%) as trans women (43%) in paid employment. Among men, there was also a significant difference, with 90% of cisgender men in paid employment, as opposed to only 63% of trans men (Greve et al., 2022: 70-72). This study does not present results for non-binary trans people as a separate group. The Norwegian report Seksuell orientering, kjønnsmangfold og levekår (Sexual orientation, gender diversity and living conditions; Anderssen et al., 2021) also shows that unemployment is higher among trans people than among cisgender people. The proportion of non-binary trans people with paid employment as their main occupation was 29% and in the binary trans group it was 46%. Among cisgender people, 57% had paid employment as their main occupation. The differences between the three groups were significant, controlling for age, income, and education level (Anderssen et al., 2021: 45-46). It should be emphasised that both reports refer to the proportion of people in gainful employment, and that other activities, such as studies, are not represented.

In the Finnish survey Sukupuolivähemmistöjen kohtaaminen työelämässä (Swe: Att bemöta könsmångfalden i arbetslivet; Addressing gender diversity in the labour market), respondents were asked whether they belonged to minorities other than the trans community. Here long-term illness stood out, with more than a quarter of respondents stating that they had a long-term illness. Common long-term illnesses were mental health problems related to minority stress and gender dysphoria (Saloheimo, 2021). A Swedish report from the Public Health Agency of Sweden shows that a majority, about 60%, of young trans people in the study, aged 15-29, stated that their ability to work or everyday life was impaired to some degree due to physical or mental health issues (Public Health Agency of Sweden, 2015: 39).

The Finnish study Experiences of Non-Heterosexual and Trans Youth on Career Choice and in the Workplace (2016), focused specifically on young trans people, shows that trans people are often marginalised in working life from an early age. Some do not enter the labour market at all, and some drop out of education due to narrow gender norms in education and discrimination at school (Lehtonen, 2016). The study shows that some young trans people feel anxious about entering the labour market due to fear of discrimination and unfair treatment.

Furthermore, the author argues that young people can rarely rely on their workplaces having policies or actively working to prevent discrimination and other negative treatment based on gender identity or gender expression on a daily basis. Based on the material, he argues that young trans and non-heterosexual people are active agents, often criticising heteronormative practices either openly or in their thinking, but that they are often alone when it comes to tackling the problems (Lehtonen, 2016).

A Norwegian report showed that there is a higher percentage of trans people whose income is in the lowest category, below NOK 100,000 per year, compared to cisgender people. Non-binary trans people in particular stand out, with 26% in the lowest income category, representing the largest group in percentage terms. Among binary trans people, the figure was 14% and among cisgender people 10%. The differences between the groups were statistically significant (Anderssen et al., 2021: 42). A Danish report also clearly showed that trans people are overrepresented in the lowest earning category compared to cisgender people. Of the trans people in the study, 39% had an annual income of less than DKK 100,000, compared to 14% of cisgender people. The finding that trans people earn significantly less overall persisted even when controlling for background factors, such as age, ethnicity, and education level, as well as for sector. That analysis showed that trans people earn 41% less than cisgender people (Greve et al., 2022).

In the Swedish survey Hälsans bestämningsfaktorer (Determinants of health), over half of respondents reported that they had a monthly income of less than SEK 14,000 before tax, meaning that they are categorised as low-income earners. The authors of the report emphasise that this is partly due to the high proportion of younger respondents, with the majority of individuals with an income of less than SEK 14,000 per month being between the ages of 15 and 29 (Public Health Agency of Sweden, 2015). The Icelandic report Hinsegin fólk á vinnumarkaði (LGBTI people in the labour market) examined, among other things, the wages of trans people based on tax returns. It shows that the wages earned by trans women are on average significantly lower than those of gay cisgender people, who were also surveyed. The number of respondents who were trans men was deemed too small to be included in the results (Zoega, 2023).

The findings of these Nordic reports are also in line with the largest European survey on the conditions of LGBTI people ever produced, the EU LGBTI Survey II, produced by the EU Agency for Fundamental Rights (FRA). It found that while the income distribution of the LGBTI people surveyed overall was similar to that of the general population, the incomes of trans people stood out in being more likely to be in the lowest quartile and less likely to be in the highest quartile (FRA, 2019).

The Finnish survey Sukupuolivähemmistöjen kohtaaminen työelämässä (Swe: Att bemöta könsmångfalden i arbetslivet; Responding to gender diversity in working life) found that the proportion of trans people with insecure employment is very high. Only 26.5 per cent of respondents said they had permanent jobs. The corresponding figure for the entire population of Finland was 85% in 2020. These employment conditions can be partly explained by age, as many of the respondents were young adults, amongst whom fixed-term contracts are more common, but short-term, precarious employment was also common among older respondents. Most of the respondents, 69%, worked in manual labour occupations. This cannot be explained by age or education level alone: in the 40-64 age group, about half worked in manual labour occupations. Of those with a university degree, 43% worked in manual labour occupations, indicating that many did not work in the same field that they had pursued in their education (Saloheimo, 2021).

A Danish report (Greve et al., 2022) examined the employment of trans and cisgender people by sector in Denmark. It showed that trans people are more likely than cisgender people to work in trade and transport, and less likely to work in the public sector and in sectors such as agriculture, forestry and fisheries, industry, raw materials extraction, and construction. It is also more common for trans people (5.5%) than cisgender people (0.5%) to have no information about their sector (Greve et al., 2022).                                   

A Finnish study on young trans people shows that gender norms and beliefs about gender and where trans people ‘fit in’ influence the educational and career choices young trans people make (Lehtonen, 2016). Respondents said that they could experience their trans identity as a barrier to certain choices, and that their own identity motivated them to seek career choices or workplaces that they felt were a good fit for trans people. Some interviewees felt that working alone, for example through their own business or working solely online, was a good option. This is in line with previous research that suggests that one way to avoid being dependent on the acceptance of others is not to have colleagues or external contacts, such as customers (Lehtonen, 2004a).

A number of respondents also expressed a desire to choose a profession that was perceived to match their gender identity and gender expression, for example several trans men said that they wanted to avoid work and tasks traditionally associated with femininity (Lehtonen, 2016). Young trans people were significantly more pessimistic about finding a good job in the future compared to LGB people, who were also included in the study. More young transfeminine people than transmasculine people were pessimistic about finding a good job. Other young trans people in the study expressed the belief that their gender identity is an asset in the labour market and several expressed a desire to work on issues related to equality and human rights. Others stated that their gender identity did not affect their thinking about their career and education at all (Lehtonen, 2016).

The Swedish report ‘Jag är inte ensam, det finns andra som jag’ (‘I’m not alone, there are others like me’), produced by the Swedish Agency for Youth and Civil Society, showed that young HBTQ people (aged 16-25) as a group are more likely to have difficulties covering day-to-day expenses (22%), such as food and rent, than young heterosexual people (16%), but that other factors often have a greater impact, including having a foreign background and disability. However, the binary trans group stands out, with 34% saying they had difficulty covering their living expenses in the past year. However, the difference is only statistically significant compared to HBQ cisgender men (15%). For HBQ cisgender girls and non-binary people, the proportions were 22% and 19% respectively (MUCF, 2022).

There is very little research on leadership and career development in a Nordic context, which is likely to be closely linked to the structural conditions of the labour market described earlier in this chapter. This is also further discussed in the final chapter of the knowledge review.

The Icelandic survey Hinsegin fólk á vinnumarkaði (LGBTI people in the labour market) found that the trans people, as well as the LGB people, surveyed were unlikely to hold management positions in the labour market. Two per cent of the trans people in the study held some type of management position, compared to four per cent of the LGB people (Zoega, 2023). Two Danish articles examine a trans woman’s management and development as a manager. The articles are based on the same material: recurring in-depth interviews with a trans woman in a managerial position at a company in Denmark and interviews with employees before and after the manager’s gender-affirming treatment. This material is more theory-driven than other material included in this knowledge review. In a field with little research, this type of method, which makes no claim to be representative, can be a way of exploratively seeking to broaden the field and identify new research questions. The articles show that the manager’s co-workers saw themselves as open and respectful but also expressed that they had difficulty understanding their manager and that they were confused by her changing gender expression. The manager explains that her changing gender identity changed the expectations held by her colleagues about her as a leader. They sought the nurturing and relationship-building skills that women managers are expected to have. At the same time – and in line with similar gender-stereotypical expectations of the feminine-coded manager’s body – she was more often interrupted and ignored in meetings. The study showed in various ways how beliefs about management and managers are closely linked to the belief that there are two genders and that they are opposites (Muhr & Sullivan, 2013). The authors also examined the manager’s experiences of having a ‘transgressive body’ (transgressive can be described as the subversion of the heteronormative template for how women and men are expected to behave and look, thus rendering it political) in relation to professionalism and how this changes based on context. In meetings with external customers, she tones down her transgressive body, for example by dressing in trousers and a shirt instead of a blouse and skirt. These are situations in which she knows that the ‘novelty’ of emphasising a transgressive body will ‘disrupt order’ as well as other people’s expectations of the situation. In her private role as an activist, this is something she strives for. The study shows how the negotiation of transgressivity, professionalism and labour is complex and influenced by different contexts, each with their own cultural norms of gender, gender diversity and professionalism (Muhr et al., 2016).

In the Swedish qualitative study on trans people’s work environment (Eriksson et al., 2022), several of the men included in the study describe passing as a man as being beneficial for their career. Some of the men stated that it gave them a higher status, more respect and better pay than when they did not pass as a man. One man described more negative aspects of passing as a man in the workplace, specifically being included in conversations based on societal attitudes expected of men in workplaces of the past with a more macho workplace culture and conversations and jokes based on sexism and racism (Eriksson et al., 2022: 145).

International research on trans people’s career opportunities, exclusively conducted in Anglo-Saxon contexts, revealed the various ways in which discrimination and sexism in the workplace affected study participants’ job satisfaction and career advancement opportunities (Eriksson et al., 2022, pp. 58-59). In relation to career advancement, the study participants highlighted the emotional labour required to hide one’s gender identity and emphasised the fear of others not recognising them according to their own gender identity. Some studies show that trans women specifically are sometimes pressured, or choose themselves, to not undertake certain work tasks after gender-affirming treatment, because their managers and/or they themselves considered them less suitable for them as (trans) women. In one study, trans people expressed that their career development had stalled after undergoing gender-affirmation treatment, even in organisations that worked to be HBTQI friendly. Trans people in another study reported that they did not receive a fair assessment of their work performance, for example, being unfairly evaluated by employers and customers/clients. Some also said they had been denied work for which they were qualified or dismissed from jobs when they started to adopt a non-traditional gender expression (Eriksson et al., 2022: 58-59).

“Many young trans people are entering the labour market.”

Historically, many LGBTI people have chosen to move from the Faroe Islands to communities with more accepting attitudes and laws – as well as larger LGBTI communities. In recent years, outward migration seems to have slowed down and more and more people are choosing to stay or return, but since many have left in the past, a significant number of LGBTI people in the Faroe Islands are young. “This is also the case for trans people, so many have not started working yet and are still in education,” says Esther Margreth Petersen, coordinator of the organisation LGBT+ Føroyar.

She believes that the issue of trans people’s working life conditions will become increasingly topical in the future. “It is likely to become a more important issue as many young trans people are entering the labour market,” she says, adding that LGBT+ Føroyar is already noticing this trend. She says they have been approached by an authority in the Faroe Islands for training on trans issues. “They feel that more trans people are contacting them now than before. We’ve had a meeting and talked about words and concepts and how to address people.”

LGBT+ Føroyar recognises that the biggest obstacle for trans people in the workplace is the very restrictive laws on changing one’s legal gender. The Faroe Islands have the strictest legislation in the Nordic region, and the process for changing one’s personal code number is long. Surgery is one of the requirements. In practice, the legislation means that many trans people are forced to live with a legal gender that does not correspond to their gender identity, which, according to Esther Margreth Petersen, makes life in general, and not least working life, more difficult.

“Many employers automatically retrieve your data and register you according to your legal gender. In many cases, there is no way around it, and it is difficult to have a good situation at work when your gender is not respected in the workplace,” she says. “Achieving legislative reform on changing legal gender is currently LGBT+ Føroyar’s top priority,” says Esther Margreth Petersen. “The goal is a law based on self-determination. At the same time, the organisation is working to challenge norms and change attitudes over the long term.” 

“We need to ‘demystify’ what it means to be trans. There is a lot of prejudice and misinformation.” To improve conditions for trans people in the labour market, Esther Margreth Petersen believes there is a need for awareness-raising initiatives aimed specifically at employers but also at the general public. “It’s not just the employer’s attitude that affects how you feel at work but also how you are treated by your colleagues.”

In brief:

Denmark’s results from the European study EU LGBTI Survey II (FRA, 2019) showed that 27% of trans respondents had experienced discrimination when applying for a job in the past year. These results were statistically significant. When the results are broken down within the trans community, clear differences emerge. Within the survey group, 40% of trans women responded that they had experienced discrimination, compared to 22% of trans men and 27% of non-binary trans people. However, these results are not statistically significant (FRA, 2019). 

The Norwegian report Seksuell orientering, kjønnsmangfold og levekår (Sexual orientation, gender diversity and living conditions) found that many trans people have experienced discrimination when applying for jobs. For binary trans people this figure was 46% and among non-binary people it was 28%, but these differences were not statistically significant. The number of responses related to discrimination based on gender identity was significantly higher than those related to discrimination based on sexual orientation (Anderssen et al., 2021).

In the Finnish report Sukupuolivähemmistöjen kohtaaminen työelämässä 2015-2020 (Swe: Att bemöta könsmångfalden i arbetslivet; Responding to gender diversity in working life), many respondents reported experiencing direct or indirect discrimination in recruitment processes, either regularly or occasionally (14% and 28% respectively). Many reported that appearance seemed to be a major basis for discrimination. Among those who felt they had been discriminated against without having clear evidence (16%), many did not make it to the interview stage. Among those who were accepted for an interview, a number of respondents believed that the recruitment process stopped when their trans identity came to light. The report also shows that the number of trans women who experienced discrimination when applying for jobs was higher than among other groups. Those who held or were seeking temporary employment were more likely to have experienced discrimination in recruitment situations (38.5%) than those in other groups (18%; Saloheimo, 2021). The European survey by the EU Agency for Fundamental Rights (FRA) found that 21% of all trans respondents in Finland had experienced discrimination in the process of looking for a job in the past year (FRA, 2019). These results are statistically significant. This survey showed large differences between different groups of trans people. Among trans women, 53% responded that they had experienced discrimination, while among trans men it was 23% and among non-binary trans people it was 13%. However, these results are not statistically significant.

The results for Sweden in the same survey show a similar pattern. Among all trans respondents, 21% reported experiencing discrimination in the process of looking for a job in the past year (FRA, 2019). The data is statistically significant. When broken down by group, the results show that 41% of trans women reported experiencing discrimination, compared to 16% of trans men and 21% of non-binary trans people. These differences between groups are not statistically significant.

A Swedish study examined discrimination against trans people in recruitment processes via a quantitative method known as a correspondent test. The results showed, among other things, that cisgender people were 18% more likely to receive positive responses to job applications than trans people (Granberg et al., 2020). The researchers sent fictitious applications for low-skilled jobs. Each application indicated that the applicant had changed their name during their life, in some cases to a name associated with the same gender and in other cases across gender boundaries. The researchers then recorded whether the fictitious applicants received a response and if it was positive or negative. The results also showed differences between female- and male-dominated occupations. In male-dominated occupations, employers seemed to discriminate against trans people more often. In female-dominated occupations, employers seemed to discriminate more often against men, regardless of whether they were trans/cisgender. The biggest differences between the fictitious cisgender and trans people in the study were in male-dominated occupations, where cis men received positive responses 44% of the time, compared to 24% for trans women. Employers were more likely to send positive responses to cisgender men than cisgender women, followed by trans men and lastly trans women. In female-dominated occupations, discrimination seemed to occur mainly on the basis of the applicant’s stated gender at the time of application. Employers sent more positive responses to trans women and cisgender women than to trans men and cisgender men. The study thus shows that employers discriminate on different grounds. For example, a trans man may be discriminated against for being trans in male-dominated occupations but for being male in female-dominated occupations (Granberg et al., 2020).

The Swedish government report Transpersoner i Sverige – Förslag för stärkt ställning och bättre levnadsvillkor (Trans people in Sweden – Proposals for a stronger position and better living conditions; SOU 2017:92) raises the issue that employers and recruitment consultants often use web-based recruitment tools that require jobseekers to provide their gender, among other information. In most cases there are only two options to choose from, which excludes non-binary trans people. In recruitment processes, many employers also require job applicants to provide certificates and references from previous employers. A person who has changed their legal gender and/or name can prove their identity with a special certificate from the Swedish Tax Agency. However, this means that applicants have no choice but to be open about their transition if they wish to rely on this certificate (SOU, 2017). The Finnish study Experiences of Non-Heterosexual and Trans Youth on Career Choice and in the Workplace (2016) also addresses the issue of certificates and the consequences of fear of discrimination in job searches. One respondent reported that he had not dared to change his name officially, despite having been using his new name for 10 years, out of fear of having to explain the name change, knowing that the issue would be highlighted in job interviews and potentially give would-be employers a negative image of him (Lehtonen, 2016).