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2006 OECD Economic Surveys: Finland 2006

image of OECD Economic Surveys: Finland 2006

This 2006 edition of OECD's periodic survey of the Finnish economy opens with a general assessment of recent economic performance and key economic challenges.  Among the challenges it addresses in more detail in succeeding chapters are ensuring fiscal sustainability in the face of imminent ageing, restricting early retirment to make the pension reform a success, increasing flexibility in centralised wage agreements, and using active and passive labour market measures to meet the employment target. This issue's special feature discusses reducing risks and improving policies in the housing market.

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Active and Passive Labour Market Measures and the Employment Target

The government is planning a substantial expansion of active labour market policies (ALMPs) as an important component of its strategy to meet the employment target. However, it is not clear on the basis of current evaluations that such an expansion will have a significant effect on regular employment. More important is to change the mix of existing measures towards those that are most effective, in particular to cut back on wage subsidies for public sector employment and expand private sector wage subsidies.

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