OECD Better Life Index (2024)

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indicatorvalueunit
Population5.5mil.
Visitors per year6.2mil.
Renewable energy24.48%

How’s Life?

Finland performs well in many dimensions of well-being relative to other countries in the Better Life Index. Finland outperforms the average in education, work-life balance, environmental quality, social connections, safety and life satisfaction. These assessments are based on available selected data.

Money, while it cannot buy happiness, is an important means to achieving higher living standards. In Finland,the average household net-adjusted disposable income per capita is USD33 471 a year, more than the OECD average of USD30 490 a year.

In terms of employment,about 72% of people aged 15 to 64 in Finland have a paid job, above the OECD employment average of 66%. Some 74% of men are in paid work, compared with 71% of women.In Finland, 4% of employees work very long hours in paid work, below the OECD average of 10%, with 5% of men working very long hours in paid work compared with 2% of women.

Good education and skills are important requisites for finding a job. In Finland,91% of adults aged 25-64 have completed upper secondary education, higher than the OECD average of 79%. However, completion varies between men and women, as 89% of men have successfully completed high school compared with 94% of women. In terms of the quality of the education system,the average student scored 516 in reading literacy, maths and science in the OECD's Programme for International Student Assessment (PISA). This score is higher than the OECD average of 488. On average in Finland,girls outperformed boys by 27 points, well above the average OECD gap of 5 points.

In terms of health,life expectancy at birth in Finland is around 82 years, one year higher than the OECD average of 81 years. Life expectancy for women is 85 years, compared with 79 for men.The level of atmospheric PM2.5– tiny air pollutant particles small enough to enter and cause damage to the lungs –is 5.5 micrograms per cubic meter, below the OECD average of 14 micrograms per cubic meter. In Finland, 97% of people say they are satisfied with the quality of their water, much higher than the OECD average of 84%.

Concerning the public sphere, there is a strong sense of community and moderate levels of civic participation in Finland, where96% of people believe that they know someone they could rely on in time of need, more than the OECD average of 91%. Voter turnout,a measure of citizens' participation in the political process,was 69% during recent elections, the same as the OECD average. Social and economic status can affect voting rates; voter turnout for the top 20% of the population is an estimated 78% and for the bottom 20% it is an estimated 64%.

When asked to rate their general satisfaction with life on a scale from 0 to 10, Finns gave ita 7.9 grade on average,much higher than the OECD average of 6.7.

For more information on estimates and years of reference, seeFAQ sectionandBLI database.

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OECD in Action

OECD Economic Surveys: Finland

OECD’s periodic surveys of the Finnish economy. Each edition surveys the major challenges faced by the country, evaluates the short-term outlook, and makes specific policy recommendations. Special chapters take a more detailed look at specific challenges. Extensive statistical information is included in charts and graphs.

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Finland in Detail

Housing – Finland expand

Key Findings

Living in satisfactory housing conditions is one of the most important aspects of people's lives. Housing is essential to meet basic needs, such as shelter, but it is not just a question of four walls and a roof. Housing should offer a place to sleep and rest where people feel safe and have privacy and personal space; somewhere they can raise a family. All of these elements help make a house a home. And of course there is the question whether people can afford adequate housing.

Housing costs take up a large share of the household budget and represent the largest single expenditure for many individuals and families, by the time you add up elements such as rent, gas, electricity, water, furniture or repairs. In Finland, households on average spend23% of their gross adjusted disposable income on keeping a roof over their heads, above the OECD average of 20%.

In addition to housing costs 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 children's development. 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 1.7 rooms per person. In terms of basic facilities,99.6%of dwellings in Finland contain private access to an indoor flushing toilet, more than the OECD average of 97%.

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How's Life?: Measuring Well-being

Indicators

Income – Finland expand

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, health care and housing.

Household net adjusted disposable income is the amount of money that a household earns each year after taxes and transfers. It represents the money available to a household for spending on goods or services. In Finland,the average household net adjusted disposable income per capita is USD33 471a year, higher than the OECD average of USD30 490.

Household net wealth is the total value of a household's financial and non-financial worth, such as money or shares held in bank accounts, the principal residence, other real estate properties, vehicles, valuables and other non-financial assets (e.g other consumer durables). In Finland,the average household net wealth is estimated at USD230 032, lower than the OECD average of USD 323 960.

Better Policies for Better Lives

The basic income experiment

A two-year basic income pilot was launched in early 2017 to reshape the Finnish social security system in response to changes in the labour market. The pilot is inspired by a preliminary study that recommended a partial basic income model to replace all basic benefits, while keeping nearly all insurance-based models intact.

The experiment explores whether the basic income can reduce poverty and social exclusion, improve incentives to work and ease pressures from social benefit and taxation. The pilot will follow 2 000 people, selected among the recipients of the basic unemployment allowance or the labour market subsidy from December 2016. Early studies suggest that this partial basic income could reduce social exclusion and bureaucratic traps, but to be truly effective it would have to be implemented along with other reforms to social security and taxation policy.

For more information on estimates and years of reference, seeFAQ sectionandBLI database.

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How's Life?: Measuring Well-being

Indicators

Jobs – Finland expand

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,72% of the working-age population aged 15 to 64 has a paid job. This figure is higher than the OECD employment average of 66%.

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 about 1.2%, slightly lower than the OECD average of 1.3%.

The wages and other monetary benefits that come with employment are an important aspect of job quality.Finnsearn USD 46 230 per year on average, slightly less than the OECD average of USD 49 165.

Another essential factor of employment quality is job security, in terms of expected loss of earnings when someone becomes unemployed. This includes how likely you are to lose your job, how long you are likely to remain unemployed and how much financial assistance you can expect from government. Workers facing a high risk of job loss are more vulnerable, especially in countries with smaller social safety nets. In Finland,workers face an expected 2.2% loss of earnings if they become unemployed, much lower than the OECD average of 5.1%.

For more information on estimates and years of reference, seeFAQ sectionandBLI database.

Better Policies for Better Lives

Adult education for better employment

Finland has invested highly in vocation education and training (VET) to maintain and develop adult skills that lead to better job prospects and a greater capacity to adapt to the labour market.

About 1.7 million adults, more than 60% of the adult population, participate in adult education each year and a growing number of Finnish adults participate in further vocational education and apprenticeship training. Adults over 25 are highly represented in apprenticeship programmes, in comparison with other European countries: around 80% of apprentices are over 25 and many of the trainees are already employed when they begin an apprenticeship.

The Finnish government allocates 40% of its adult education budget, a relatively large proportion, to vocational education and training. Most of the programmes are offered free of charge.

More Resources

How's Life?: Measuring Well-being OECD Job Quality Database

Indicators

Community – Finland expand

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,96%of people believe that they know someone they could rely on in time of need, more than the OECD average of 91%.

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.

Better Policies for Better Lives

Libraries as a community hub

The city of Vantaa has reversed a decline in library use and re-established the community impact of libraries. The City Library introduced new services to reconcile the needs of existing users while engaging youth and young adults. Changes include more efficient self-service systems and new personalised community and youth spaces.

City-wide visits have since increased by 14% and loans by 3.6%. Community members are also spending more time in the libraries, using it as a place of leisure and meeting. The Tikkurila neighbourhood library alone increased visits by 16% and the customers spend 300% more time in the library. Hanukila library reduced staff costs by 20% and in other locations staff costs dropped by 10%.

More Resources

How's Life?: Measuring Well-being OECD Insights: Human Capital

Indicators

Education – Finland expand

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. Finns can expect to go through close to19.8years of educationbetween the ages of 5 and 39, more than the OECD average of 18 years and one of the highest levels in the OECD.

Graduating from upper secondary education has become increasingly important in all countries, as the skills needed in the labour market are becoming more knowledge-based. 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,91%of adults aged 25-64 have completed upper secondary education, higher than the OECD average of 79%.

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 2018, PISA focused on examining students' reading ability, skills in maths and level in sciences, as research shows that these skills are more reliable predictors of economic and social well-being than the number of years spent in school.

The average student in Finland scored 516 in reading literacy, maths and sciences,above the OECD average of 488. The best-performing school systems manage to provide high-quality education to all students.

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 Master’s degree.

Encouraging entrepreneurship

The Innolukio initiative encourages creative thinking and entrepreneurship at the general upper secondary school level. After-school activities include weekly exercises, videos, competitions and learning materials to support creativity. These experiences help students gain the knowledge and skills necessary for future work tasks.

First implemented as a local initiative Innolukio has grown to include 320 upper secondary schools and 110 000 students by 2012/13. Success factors include the innovative learning environments, active use of advocates, successful management of publicity and focus on entrepreneurship education. The project also connects students to universities and businesses.

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How's Life?: Measuring Well-being

Indicators

Environment – Finland expand

Key Findings

The quality of our local living environment has a direct impact on our health and well-being. Outdoor air pollution is one important environmental issue that directly affects the quality of people's lives. Despite national and international interventions and decreases in major pollutant emissions,the health impacts of urban air pollutioncontinue to worsen, with air pollution set to become the top environmental cause of premature mortality globally by 2050. 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.

PM2.5 – 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,PM2.5 levels are 5.5 micrograms per cubic meter, much lower than the OECD average of 14 micrograms per cubic meter and lower than the annual guideline limit of 10 micrograms per cubic meter set by theWorld Health Organization.

Access to clean water is fundamental to human well-being. Despite significant progress in OECD countries in reducing water pollution, improvements in freshwater quality are not always easy to discern. InFinland,97% of people say they are satisfied with water quality,one of the highest rates in the OECD, where the average is 84%.

More Resources

How's Life?: Measuring Well-being OECD Environmental Outlook to 2050

Indicators

Governance – Finland expand

Key Findings

Trust in government is essential for social cohesion and well-being. High voter turnout is a measure of citizens' participation in the political process. In the most recent elections for which data are available,voter turnout in Finland was 69% of those registered.This figure is in line with the OECD average.

Broader public engagement in the decision-making process is also important for holding the government to account and maintaining confidence in public institutions. The formal process for public engagement in developing laws and regulations is one way to measure the extent to which people can become involved in government decisions on key issues that affect their lives. In Finland, the level of stakeholder engagement in developing regulations is 2.2 (on a scale between 0 and 4), slightly higher than the OECD average of 2.1.

For more information on estimates and years of reference, seeFAQ sectionandBLI database.

Better Policies for Better Lives

Working collaboratively to improve access to information

Lakes are a major feature of the Finnish landscape. Lakewiki (Järviwikiin Finnish) is a collaborative web service that encourages people to take responsibility for nearby waters. The platform provides the public with basic information about water protection and about 56 000 lakes. Anyone is welcome to contribute by uploading photos, text, data, and observations or writing on discussion forums. Uploaded observations include water temperature and levels, ice conditions, and water transparency. These observations are then used to create maps and time-series graphs.

Lakewiki has grown in steadily popularity with the number of visitors increasing by about 25% each year. The site reaches between 10 000-30 000 visitors a week.

Improving online consultation

Finland has launched a pilot project for an online "opinions service" (lausuntopalvelu.fi) to improve the formal consultation process. It allows representatives of ministries, agencies and organisations, as well as citizens, to participate in open discussions during a consultation. They are able to use the platform to browse and issue opinions, including commenting on the statements made by other users. The project also aims to help regulators collect and analyse information received from stakeholders more efficiently.

More Resources

How's Life?: Measuring Well-being Regulatory Policy Outlook: Finland

Indicators

Health – Finland expand

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.Lifeexpectancy at birth in Finland stands at 82 years, one year above the OECD average of 81 years. Higher life expectancy is generally associated with higher health care spending per person, although many other factors have an impact on life expectancy (such as living standards, lifestyles, education and environmental factors).

When asked, "How is your health in general?"68%of people in Finland reported to be in good health, in line with the OECD average. Despite the subjective nature of this question, answers have been found to be a good predictor of people's future health care use. Gender, age and social status may affect answers to this question.

Better Policies for Better Lives

Government actions to reduce high suicide rates

Since the 1980s, consecutive governments have taken the high rates of suicide in Finland seriously by implementing large-scale national prevention programmes. The first national suicide prevention programme was carried out through cross-sector collaboration, including different service sectors and key domains. The findings of this study, which indicated in particular that the risk of suicide was particularly high among young men, aged 15 to 29, led to the establishment of a “Time Out! Back on track” initiative that targeted to this group. This initiative has shown positive results and is still in place in over a hundred municipalities, reaching approximately 60% of men in the target age group. These strategies have been successful in reducing suicide rates and having an associated positive impact on society. Finland has seen a significant drop in suicide rates over the past 25 years, with 40% fewer suicides amoung young men between 1990 and 2013. This brought down the number of suicides from over 50 per 100 000 among young men in 1990 to less than 25 in 2013.

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How's Life?: Measuring Well-being

Indicators

Life Satisfaction – Finland expand

Key Findings

Happiness or subjective well-being 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 objective data to compare the quality of life across countries.

Life satisfaction measures how people evaluate their life as a whole rather than their current feelings. When asked to rate their general satisfaction with life on a scale from 0 to 10,Finns on average gave ita 7.9 grade,much higher than the OECD average of 6.7, the highest grade in the OECD.

Better Policies for Better Lives

Improving elderly careThe social and health services of Pori, Finland created a Living Lab to find more efficient models for elderly care. The concept of a Living Lab is to combine different stakeholders to test and develop user-driven products. In this case, technological solutions are tested and developed to provide a better quality of life and dignity for elderly people, as well as improve safety, prevent loneliness and help elderly people live at home.

The Living Lab provides an environment where elderly people, relatives and elderly care professionals can participate actively in the development and usability testing of welfare technologies. Testing also takes place in real life contexts (in people's homes) to observe what users actually need.

This model has provided information on the latest technology solutions for public health care to support procurement; improved nursing processes and the technological skills of elderly care personnel; increased co-operation between elderly people, relatives and nursing personnel; and supported home care.

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How's Life?: Measuring Well-being

Indicators

Safety – Finland expand

Key Findings

Personal security is a core element for the well-being of individuals. Do you feel safe out walking, alone at night, for example?In Finland, about 88% of people say that they feel safe walking alone at night,more than the OECD average of 74%.

The homicide rate (the number of murders per 100000 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 1.2, lower than the OECD average of 2.6.

Indicators

Work-Life Balance – Finland expand

Key Findings

Finding a suitable balance between work and life is a challenge for all workers, especially working parents. The ability to successfully combine work, family commitments and personal life is important for the well-being of all members in a household. Governments can help to address the issue by encouraging supportive and flexible working practices, making it easier for parents to strike a better balance between work and home life.

An 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, jeopardise safety and increase stress. In Finland,almost 4% of employees work very long hours in paid work, much less than the OECD average of 10%.

The more people work, the less time they have to spend on other activities, such as time with others, leisure activities, eating or sleeping. The amount and quality of leisure time is important for people's overall well-being, and can bring additional physical and mental health benefits.In Finland, full-time workersdevote 63% of their day on average, or 15.2 hours, to personal care(eating, sleeping, etc.)and leisure(socialising with friends and family, hobbies, games, computer and television use, etc.) – slightly more than the OECD average of 15 hours.

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How's Life?: Measuring Well-being

Indicators

In the realm of well-being and societal excellence, Finland stands out as an exemplary case. Let's delve into the evidence that showcases the country's prowess across various dimensions.

Population and Visitors: Finland, with a population of 5.5 million, attracts around 6.2 million visitors annually. This influx of tourists speaks volumes about the country's appeal and the positive experiences it offers.

Renewable Energy: A commitment to sustainability is evident in Finland's use of renewable energy, constituting 24.48% of its energy mix. This not only reflects environmental consciousness but also a strategic approach towards a cleaner and more sustainable future.

Well-Being Metrics: Finland excels in the Better Life Index, outperforming the average in education, work-life balance, environmental quality, social connections, safety, and life satisfaction. These assessments are grounded in data, reflecting the country's commitment to holistic well-being.

Economic Prosperity: While acknowledging that money doesn't buy happiness, Finland boasts an average household net-adjusted disposable income per capita of USD 33,471, surpassing the OECD average. Employment rates are impressive, with 72% of people aged 15 to 64 having a paid job, exceeding the OECD average of 66%.

Education: In the realm of education, Finland shines with 91% of adults aged 25-64 completing upper secondary education, higher than the OECD average of 79%. The education system's quality is further emphasized by students' performance, scoring 516 in reading literacy, maths, and science, surpassing the OECD average of 488.

Health and Environment: Finland's commitment to public health is evident with a life expectancy at birth of 82 years, above the OECD average of 81 years. The air quality is commendable, with PM2.5 levels at 5.5 micrograms per cubic meter, well below the OECD average of 14 micrograms per cubic meter. Additionally, 97% of Finns express satisfaction with the quality of their water, surpassing the OECD average of 84%.

Community and Governance: The sense of community in Finland is strong, with 96% of people believing they have someone to rely on in times of need, exceeding the OECD average. Voter turnout, a key measure of civic participation, stands at 69%, aligning with the OECD average. Trust in government is reflected in a stakeholder engagement level of 2.2 (on a scale between 0 and 4), slightly higher than the OECD average of 2.1.

Life Satisfaction: Finns, when asked to rate their general satisfaction with life on a scale from 0 to 10, give it an impressive average grade of 7.9, significantly higher than the OECD average of 6.7.

Finland's success across these diverse domains paints a compelling picture of a nation that prioritizes the well-being of its citizens, excelling not just economically but also in education, health, sustainability, and social cohesion.

OECD Better Life Index (2024)
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