Finland

Did You Know?

Population
5.3
mil.
Visitors per year
3.6
mil.
Renewable energy
24.48
%

How’s Life?

Finland performs very well in many measures of well-being, as shown by the fact that it ranks among the top countries in a large number of topics in the Better Life Index.

Money, while it cannot buy happiness, is an important means to achieving higher living standards. In Finland, the average household earned 24 246 USD in 2008, more than the OECD average .

In terms of employment, nearly 68% of people aged 15 to 64 in Finland have a paid job. People in Finland work 1652 hours a year, less than most in the OECD. 76% of mothers are employed after their children begin school, suggesting that women are able to successfully balance family and career.

Having a good education is an important requisite to finding a job. In Finland, 81% of adults aged 25 to 64 have earned the equivalent of a high-school diploma, higher than the OECD average. Finland is a top-performing country in terms of the quality of its educational system. The average student scored 536 out of 600 in reading ability according to the latest PISA student-assessment programme, the second strongest score in the OECD.

In terms of health, life expectancy at birth in Finland is 80 years, slightly above the OECD average. The level of atmospheric PM10 – tiny air pollutant particles small enough to enter and cause damage to the lungs – is 15 micrograms per cubic meter, and is lower than levels found in most OECD countries.

Concerning the public sphere, there is a strong sense of community and high levels of civic participation in Finland. 93% of people believe that they know someone they could rely on in a time of need, higher than the OECD average of 91%. Voter turnout, a measure of public trust in government and of citizens' participation in the political process, was 74% during recent elections; this figure is slightly higher than the OECD average of 72%. In regards to crime, only 2% of people reported falling victim to assault over the previous 12 months.

When asked, 86% of people in Finland said they were satisfied with their life, much higher than the OECD average of 59%.

These findings are based on data from 2008 or later.

Topics

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Finland in Detail

Housing

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Key Findings

In many OECD countries, home ownership is an important dimension of individual well-being. It protects owners from fluctuations in rents and ensures families a stable and secure shelter. Additionally, the value of a property represents a major source of wealth for households. Over 57% of occupied dwellings in Finland are inhabited by the owners themselves, lower than the OECD-23 average of 67%.

In addition to measuring home ownership rates, it is also important to examine living conditions, such as the average number of rooms shared per person and whether households have access to basic facilities.

The number of rooms in a dwelling, divided by the number of persons living there, indicates whether residents are living in crowded conditions. Overcrowded housing may have a negative impact on physical and mental health, relations with others and the development of children. In addition, dense living conditions are often a sign of inadequate water and sewage supply. In Finland, the average home contains 1.9 rooms per person, more than the OECD average of 1.6 rooms per person. In terms of basic facilities, only 0.8% of dwellings in Finland lack private access to indoor flushing toilets, much less than the OECD average of 2.8% dwellings.

Indicators

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Income

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Key Findings

While money may not buy happiness, it is an important means to achieving higher living standards and thus greater well-being. Higher economic wealth may also improve access to quality education, healthcare and housing.

Household net-adjusted disposable income is the amount of money that a household earns each year after tax. It represents the money available to a household for spending on goods or services. In Finland, the average household net-adjusted disposable income is 24 246 USD a year, higher than the OECD average of 22 284 USD.

Household financial wealth is the total value of a household’s financial worth. In Finland, the average household wealth is estimated at 18 616 USD, lower than the OECD average of 36 808 USD. While the ideal measure of household wealth should include real assets (e.g. land and dwellings), such information is currently available for only a small number of OECD countries.

Indicators

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Jobs

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Key Findings

Having a job brings many important benefits, including: providing a source of income, improving social inclusion, fulfilling one’s own aspirations, building self-esteem and developing skills and competencies. In Finland, nearly 68% of the working-age population aged 15 to 64 has a paid job. This figure is slightly higher than the OECD employment average of 65%.

Unemployed persons are defined as those who are not currently working but are willing to do so and actively searching for work. Long-term unemployment can have a large negative effect on feelings of well-being and self-worth and result in a loss of skills, further reducing employability. In Finland, the percentage of the labour force that has been unemployed for a year or longer is currently at 2.01%, slightly lower than the OECD average.

Indicators

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Community

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Key Findings

Humans are social creatures. The frequency of our contact with others and the quality of our personal relationships are thus crucial determinants of our well-being.

A strong social network, or community, can provide emotional support during both good and bad times as well as provide access to jobs, services and other material opportunities. In Finland, 93% of people believe that they know someone they could rely on in a time of need, higher than the OECD average. Nearly 42% reported having helped a stranger in the last month.

A weak social network can result in limited economic opportunities, a lack of contact with others, and eventually, feelings of isolation. Socially isolated individuals face difficulties integrating into society as a contributing member and fulfilling personal aspirations. Nearly 7% of people in Finland reported ‘rarely’ or ‘never’ spending time with friends, colleagues or others in social settings; this figure is close to the OECD average.

Indicators

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Education

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Key Findings

A well-educated and well-trained population is essential for a country’s social and economic well-being. Education plays a key role in providing individuals with the knowledge, skills and competences needed to participate effectively in society and in the economy. Most concretely, having a good education greatly improves the likelihood of finding a job and earning enough money. Across OECD countries, men with university-level degrees are 16% more likely to find jobs, and women are 30% more likely. Lifetime earnings also increase with each level of education.

Following a decline in manual labour over previous decades, employers now favour a more educated labour force. High-school graduation rates therefore provide a good indication of whether a country is preparing its students to meet the minimum requirements of the job market.

In Finland, 81% of adults aged 25-64 have earned the equivalent of a high-school degree, higher than the OECD average of 73%. However, among younger people – a better indicator of Finland’s future – 90% of 25-34 year-olds have earned the equivalent of a high-school degree, again higher than the OECD average of 80%.

But graduation rates, while important, speak little to the quality of education received. The OECD’s Programme for International Student Assessment (PISA) reviews the extent to which students have acquired some of the knowledge and skills that are essential for full participation in modern societies. In 2009, PISA focused on examining students’ reading ability, as research shows that reading skills are more reliable predictors of economic and social well-being than the number of years spent in school.

Finland is a top-performing OECD country in reading literacy, with the average student scoring 536 out of 600. This score is higher than the OECD average of 493, making Finland the 2nd strongest OECD country in reading skills. Additionally, students performed extremely well in mathematics and science, with nearly 20% reaching the two highest levels of proficiency.

Better Policies for Better Lives

Highly respected teachers

The trust that teachers enjoy in Finnish society is deserved and reflects the very high quality of their training. Finland has raised the social status of its teachers to a level where there are few occupations with higher status. University professors are among the most highly regarded of all professionals, and even the word for teacher is the same for school teachers as for university professors. In 2010, there were more than 10 applicants for each of the 660 available slots on university courses for training primary schoolteachers, making teaching one of the most sought-after professions.

As a result of this competitive climate, teaching is now a highly selective occupation in Finland, with highly skilled, well-trained teachers spread throughout the country. While teachers in Finland have always enjoyed respect in society, a combination of raising the bar for entry and granting teachers greater autonomy over their classrooms and working conditions than their peers enjoy elsewhere has helped to raise the status of the profession. Teachers have earned the trust of parents and the wider society by their demonstrated capacity to use professional discretion and judgment in the way they manage their classrooms and respond to the challenge of helping virtually all students become successful learners.

Since the 1980s, the Finnish system of accountability was redeveloped entirely from the bottom up. Teacher candidates are selected, in part, according to their capacity to convey their belief in the core mission of public education in Finland, which is deeply humanistic as well as civic and economic. The preparation they receive is designed to build a powerful sense of individual responsibility for the learning and well-being of all the students in their care. During their careers, they must combine the roles of researcher and practitioner. Teachers in Finland are not only expected to become familiar with the knowledge base in education and human development, but are also required to write a research-based thesis as the final requirement for the Masters degree.

Indicators

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Environment

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Key Findings

Outdoor air pollution is one important environmental issue that directly affects the quality of peoples’ lives. Air pollution in urban centres, often caused by transport and the use of small-scale burning of wood or coal, is linked to a range of health problems, from minor eye irritation to upper respiratory symptoms in the short-term and chronic respiratory diseases such as asthma, cardiovascular diseases and lung cancer in the long-term. Children and the elderly may be particularly vulnerable.

PM10 – tiny particulate matter small enough to be inhaled into the deepest part of the lung – is monitored in OECD countries because it can harm human health and reduce life expectancy. In Finland, PM10 levels are 14.9 micrograms per cubic meter, lower than the OECD average of 22 micrograms per cubic meter.

Urban air quality in Finland is generally good, and people living in cities have relatively low exposure to air pollution by ozone and PM10 by EU standards. However, exposure to particulate matter from small scale wood burning is common, especially in rural and semi-urban areas where district heating is not available.

Better Policies for Better Lives

Reduced noise leads to a healthier environment

Efforts to reduce noise have a long history in Finland, as a low-noise environment is considered part of healthy and pleasant living conditions. Regulations (e.g. speed limit in city centres, noise emission thresholds, regulations of aircraft take-off and landing) and investments (e.g. low-noise pavements, noise barriers, renewal of rail fleet and rail maintenance) have all been implemented. As a result, the number of inhabitants living in areas exposed to daytime noise from city traffic above 55 dB has been reduced from 560 000 in 1998 to around 400 000 in 2005.

The City of Helsinki also contributed EUR 18 million to the construction of 16 km of noise barriers between 2000 and 2007. These noise abatement measures have benefited about two-thirds of the exposed inhabitants.

Indicators

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Governance

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Key Findings

A cohesive society is one where citizens have a high degree of confidence in their governmental institutions and public administration. 82% of people in Finland say they trust their political institutions, the highest rate in the OECD area. High voter turnout is another measure of public trust in government and of citizens' participation in the political process. In the most recent elections for which data is available, voter turnout in Finland was 74% of those registered. This figure is slightly higher than the OECD average of 72%.

Ensuring that government decision making is not compromised by conflicts of interest is key to maintaining trust in government. Transparency is therefore essential to hold government to account and to maintain confidence in public institutions.

Freedom of information laws (FOI) allows the possibility for individuals to access undisclosed information. For such policies to be successful, the public should have a clear understanding of their rights under the law, should be able to file requests with ease and should be protected against any possible retaliation. People in Finland can file a request for information either in writing, online, by telephone or in person – thus greatly facilitating the FOI process. There are also provisions for anonymity and built-in protection from retaliation –important protections that few OECD countries have adopted. As a result, Finland has one of the most accessible freedom of information policies in the OECD area.

Indicators

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Health

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Key Findings

Most OECD countries have enjoyed large gains in life expectancy over the past decades, thanks to improvements in living conditions, public health interventions and progress in medical care. In 2008, life expectancy at birth in Finland stood at 79.9 years, nearly one year above the OECD average of 79 years.

Higher life expectancy is generally associated with higher healthcare spending per person, although many other factors have an impact on life expectancy (such as living standards, lifestyles, education and environmental factors). Total health spending accounted for 8.4% of GDP in Finland in 2008, a slightly lower share than the average of 9.0% in OECD countries. Health spending as a share of GDP is lower in Finland than in all other Nordic countries, but higher than in several other European countries and in Japan. Between 2000 and 2008, health spending per person in Finland increased in real terms by 4.6% per year on average, a growth rate higher than the OECD average of 4.2% per year.

Throughout the OECD, tobacco consumption and excessive weight gain remain two important risk factors for many chronic diseases.

Smoking rates among adults in Finland in 2008 stood at 20.4%, lower than the OECD average of 23.3%.

In Finland, the obesity rate among adults - based on self-reported height and weight - was 15.7% in 2008. This is lower than for the United States (27.5%) but higher than most other Nordic countries (Denmark, Norway and Sweden). The average for the 21 OECD countries with self-reported data was 14.9% in 2008. Obesity’s growing prevalence foreshadows increases in the occurrence of health problems (such as diabetes, cardiovascular diseases and asthma), and higher health care costs in the future.

When asked, "How is your health in general?", 68% of people in Finland reported to be in good health, slightly lower than the OECD average of 69%. Despite the subjective nature of this question, the answers have been found to be a good predictor of people’s future health care use.

Indicators

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Life Satisfaction

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Key Findings

Happiness can be measured in terms of life satisfaction, the presence of positive experiences and feelings, and the absence of negative experiences and feelings. Such measures, while subjective, are a useful complement to compare the quality of life across countries.

For Finland, like throughout much of the OECD, self-reported life satisfaction has been rising over the last decade. In recent polling, 86% were satisfied with their life and 88% believe that their life will be satisfying five years later. This makes Finland one of the highest ranked OECD countries in terms of life satisfaction.

 

73% of people in Finland reported having more positive experiences in an average day (feelings of rest, pride in accomplishment, enjoyment, etc) than negative ones (pain, worry, sadness, boredom, etc). This figure is close to the OECD average of 72%.

Indicators

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Safety

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Key Findings

Personal security is a core element for the well-being of individuals, and largely reflects the risks of people being physically assaulted or falling victim to other types of crime. Across the OECD, victimisation rates for conventional crime (theft, robbery, assault) have declined in the new millennium. In Finland, 2% of people reported falling victim to assault over the previous 12 months, lower than the OECD average of 4%. 14% of people feel unsafe on the street after dark, much lower than the OECD average of 26%.

The homicide rate (the number of murders per 100,000 inhabitants) is a more reliable measure of a country’s safety level because, unlike other crimes, murders are usually always reported to the police. According to the latest OECD data, Finland’s homicide rate is 2.5, close to the OECD average.

Indicators

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Work-Life Balance

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Key Findings

Finding a suitable balance between work and life is a challenge for all workers, especially working parents. Some couples would like to have (more) children, but do not see how they could afford to stop working. Other parents are happy with the number of children in their family, but would like to work more. This is a challenge to governments because if parents cannot achieve their desired work/life balance, not only is their welfare lowered but so is development in the country.

In many respects Finland does well in reconciling work and family life. The female employment rate in Finland, at 66%, is well above the OECD average of 55%, and more than 9 out of 10 Finnish woman and mothers who have jobs in employment work full-time. 76% of mothers are employed after their children begin school; this figure is higher than the OECD average of 66% and suggests that mothers in Finland are able to successfully balance family and career.

Another important aspect of work-life balance is the amount of time a person spends at work. Evidence suggests that long work hours may impair personal health, jeopardize safety and increase stress. People in Finland work 1652 hours a year, lower than the OECD average of 1739 hours.

The more people work, the less time they have to spend on other activities, such as time with others or leisure. The amount and quality of leisure time is important for people’s overall well-being, and can bring additional physical and mental health benefits. People in Finland devote 67% of their day, or 16 hours, to personal care(eating, sleeping, etc.) and leisure (socializing with friends and family, hobbies, games, computer and television use, etc.) – higher than the OECD average.

Better Policies for Better Lives

The Finnish model of work and family reconciliation stands out in international comparison because of the manner in which it provides choice to parents with young children. Finnish policy reduces barriers to employment by ensuring all families with young children have access to a subsidised childcare place.

Indicators

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