Finland usually ranks high in international listings of competitiveness. Factors often noted are the country's highly educated population and track record for innovation. But, viewed from the perspective of the productivity and labour costs crucial to export industries, Finland's position looks very different, says Jukka Palokankas, Chief Economist for the Federation of Finnish Technology Industries.
"Recent development has been troubling, all the international comparisons show that, too. Labour costs in Finland have got out of hand."
Unit labour costs in Finland began sliding up above the eurozone average right at the start of the economic crisis in 2008. The American journal Business Week has calculated that over the past four years, Finnish unit labour costs have risen faster than anywhere in the eurozone, as much as 12%.
Many of the countries hit by financial crises have been forced to cut labour costs and by doing so have caught up in terms of competitiveness with the stronger economies within the EU.
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Soini and SDP contest workers’ support
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Siegfrids hopes for Eurovision success
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