Structural reforms are needed to ensure the labor market in Finland supports the country's recovery from recession, a report has concluded.

A survey of the Finnish economy by the Organization for Economic Cooperation and Development (OECD) has advised policy makers to make employment more flexible and enhance the competitiveness of key markets in order to stimulate long term growth.

Noting the population of the Scandinavian country is rapidly ageing, the report proposes a series of measures, including increasing flexibility regarding wage setting, earlier activation of unemployed individuals and providing social benefits that incentivize work.

With high levels of inactivity potentially leading to rising structural unemployment, the OECD explained labor market policies should be made more simple and transparent, with more policies introduced to encourage older individuals to work.

As of July 2009, the CIA estimates the population of Finland at more than 5.25 million, 16.8 per cent of whom are aged 65 and over.