Finland Faces ‘Frightening’ Demographic Trends

Although Finland is the best country in the world for raising families, it is facing the lowest number of newborns in the last 150 years, reports Bloomberg. The birth rate is continuously declining, and there is no end in sight.

Heidi Schauman, the chief economist at Aktia Bank, characterized the statistics as ‘frightening’.

– The statistics show the speed at which our society is changing, and we do not have a ready solution to stop it. We have a large public sector, and taxpayers are needed for the future of the system, Schauman said.

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She explained that to improve forecasts, each woman should have two children, and according to statistical indicators from 2016, the number of children per mother averaged 1.57, which is surprisingly low.

According to the well-known ‘baby-boxes’ program from 1937, mothers from poor families received baby equipment to reduce newborn mortality due to low incomes, and the program was later expanded to include expectant mothers from all families regardless of income.

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The Finnish education system is one of the best in the world, and parents have access to generous maternity leave, but this evidently does not contribute to an increase in the birth rate, as according to OECD data, Finland has the lowest share of young people in the total workforce among Nordic countries.

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According to projections, the situation could worsen further. Reports from the European Commission show that demographic factors limit the growth potential of the Finnish economy. The peak of economic growth is expected to occur in 2035 with a growth rate of 1.9 percent, after which it will grow on average by 1.5 percent between 2050 and 2060.

Possible Solutions

The government is working with employers and unions to improve gender equality by making maternity leave more flexible, and the announced reforms are expected to take effect in 2019.

However, Schauman believes that this is not enough. She explains that what Finland truly needs is a program that protects families and increases the value of parenthood.