Economic survey of Finland 2008: A better functioning labour market
Finland’s embrace of the opportunities offered by globalisation has encouraged the emergence of leading edge industries and has facilitated a steady decline in the unemployment rate to around the EU15 average. Nevertheless, participation rates remain below pre-recession levels, especially among certain age groups, youth unemployment remains uncomfortably high, wage setting remains particularly inflexible, and growing labour mismatches and skill shortages are acting as constraints on the economy. While recent governments have taken steps to address some of these issues, Finland’s rapidly ageing population means that these issues need to be tackled with a greater degree of purpose and urgency.
Long abstract
