Finland’s labour market weaker than that of the euro area

Abstract

In recent years the Finnish labour market, with declining employment and rising unemployment, has been considerably weaker than the euro area labour market. Finland’s high unemployment rate is attributable to the weak economic conditions and the exceptionally low demand for labour, resulting in fewer job opportunities. By contrast, labour supply, both in Finland and across the euro area, has been bolstered by rising labour force participation rates and an increase in work-based immigration.