In addition, the OECD says the difference between low and high wages is too small, which stifles ambition.
The organisation says that high starting salaries, especially in the service and hospitality sectors, may work as employment barriers against young people.
"For Finland there is some evidence that the high minimum labour cost may have reduced employment of younger workers," states the report.
The OECD has suggested that during the next negotiations over national wages and working conditions, less emphasis should be placed on an across-the-board pay raise, and more effort should be put into targeted raises based on experience and age.
Finland’s largest blue-collar union federation SAK says they reject any notion of a pay cut even on a trial basis. They don’t believe lower wages will increase employment among youth.