Sat, 12 Mar, 2016 12:05:07 AM FTimes – STT Report, Mar 12  File Photo Lehtikuva. A long-standing recession threatens to halt the continuous growth in the standard of living in Finland.
According to an analysis published by the Bank of Finland, the household income growth available to young people has weakened considerably.
At the same time, average income growth among older age groups has remained strong.
The halting of income growth also affects income over the entire lifespan, so that retirement savings are smaller.
Long-term work relationships based on a pension scheme do not necessarily guarantee the same kind of social security for young people that it did for previous generations.
“There is a risk that young household incomes will remain weak for a long time,” said Bank of Finland’s Senior Advisor Helvi Kinnunen.
Kinnunen has carried out the analysis together with Bank of Finland’s Head Economist Petri Mäki-Fränti.
A prolonged recession could make life more difficult for young people than the early 1990s recession. At that time, the income of the age group entering the labour market was far behind other age groups, but later rose quickly.
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