This study of overpopulation examines the problems and opportunities linked to population ageing in Finland. In the focus are certain issues related to the social security system, the labour market and the economy in general. The results indicate that population ageing is a medal with two sides. As of today, the main focus that people have is primarily on negative aspects related to the socio-demographic (social study of human populations) development, such as increasing spending for retirement funds, potential labour shortages, as well as problems in the field of social and health care. Up till now, population ageing also offers opportunities, for example, in the shape of a silver economy and volunteer work on behalf of retirees. Both aspects have been greatly neglected in Finland so far. Compared to the other Scandinavian countries, Finland finds itself in a more difficult position regarding the impact of population ageing. Attitude changes and active policies are necessary to deal with the rapidly increasing number of elder people in society and its effects.

The Member States of the European Union (EU) are facing crucial socio-demographic changes: on one hand, fertility rates have fallen from 2.7 children per women in the mid 1960s to less than 1.5 children in 2002, which is far below the replacement level of 2.1 children. On the other hand, the life expectancy for women increased by more than 8.5 years and for men by 7.7 years in the same period of time. As a result of these trends, European societies are currently ageing and also shrinking in the medium-term[1]. This development will affect almost every aspect of our lives, for example the way businesses operate and work is being organised, our urban planning, public transport, voting behaviour and the roads of shopping possibilities in our cities.[2]

This study also takes a close look at the phenomenon of population ageing. In the focus are mainly the effects for labour markets, social security systems and the economy in general. The objective is to determine whether population ageing is actually the problem it is said to be (“pension bomb”, “welfare collapse”, “generation clashes”, “labour shortages”, etc.) or if it should be re-evaluated and understood more in terms of opportunities for society and the economy (“silver economy”, “time for voluntary work”, “lower unemployment rates”, etc.).

The Finland case is very interesting to study with regard to population ageing, which is why the country is the focus of this study. First of all, Finland is seen as a front runner in the European Union as far as new ageing policies are concerned. This is directly connected to the fact that the country has the fastest ageing society as far as some are concerned.[3] As well, it is the only EU Member State which applied an integrated policy approach to population ageing and it is also the only one where age discrimination in working life is prohibited by law. Besides data and studies concerning Finland, the article also falls back upon some research projects carried out in other EU countries – primarily Germany – and relative statistics gathered by international organisations.

References:

Abramovici, Gérard (2004) ‘The social protection in Europe’, Eurostat, Statistics in focus: population and social conditions, Theme 3 – 6/2004, Luxembourg: Office for Official Publications of the European Union.

Antolin, Pablo, Oxley, Howard, and Suyker, Wim (2001) How will ageing affect Finland?, Economics Department Working Papers no. 295, Paris: OECD.

Auer, Peter (2000) Employment revival in Europe: Labour market success in Austria, Denmark, Ireland and the Netherlands, Geneva: International Labour Office