Demographic change reduces labour force and number of employed

Abstract

Since the financial crisis, the population structure and age structure of the Finnish labour force have changed as the baby boomer cohorts retire. As well as capital formation and productivity, labour input constitutes one of the pillars of economic growth, meaning that the contraction of the working-age population directly cuts the growth rate of potential output. What is the scale of this problem? Further, how has the situation already been reflected on the Finnish labour market, and what implications will it have over the next five years?