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Permanent State Secretary Raimo Sailas is known as an outspoken official who is not afraid to address painful issues. SEEING the big PICTURE "Securing the supply of labour is one of Finland's biggest longterm challenges. It must not be overshadowed by the ongoing economic turbulence," emphasises Raimo Sailas. EVEN NOW Adequate supply of labour The biggest of these challenges include the ageing population and an adequate supply of labour. "For the first time in Finnish history, the number of people who are of working age will start to decline sometime around 2010. After that, the number will decrease by 180,000 over a decade. The demographic change will hit Finland harder than many other countries." According to Sailas, this catastrophe can be avoided if Finland takes quick measures to secure the supply of labour. "There are two ways to do this. We must better utilise domestic labour resources by reducing unemployment and by extending the length of work careers. The other way is through immigration. The number of immigrants has increased rather clearly this year at last, but we still need a more clearly defined immigration policy." Sailas believes it is important that immigrants are transitioned into the working world as quickly as possible. "Effective language training and housing policy are needed, among other things. Straightforward issues, but easier said than done." Increase in productivity needed Along with securing the supply of labour, Sailas says another big challenge is increasing productivity. "Ultimately, competitiveness and the growth in national income built on it always require an increase in productivity." He says the situation is challenging because many of the means to boost productivity have already been tapped into. Studies show that increasing the level of education no longer has the same productivity-boosting impact as it once had in a country such as Finland, for example. "In terms of competitiveness, it is important that we improve the adoption of information technology innovations. We have traditionally been quick to embrace new technologies. In information technology, there are clear signs that we are not among the early adopters of new technology." BY MATTI REMES PHOTOGRAPH BY AURORA REINHARD P ermanent State Secretary Raimo Sailas has worked at the Ministry of Finance for 37 years. He admits that never before has it been so difficult to foresee future economic development. "This is global turbulence that doesn't seem to have direction," he comments. Sailas is known as an outspoken official who is not afraid to address painful issues. He points out that there are even bigger challenges ahead than the shortterm economic problems. FOCUS 35
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