How Demand Translates into Employment Across Industries

Abstract

This study uses a static input-output model to calculate the employment footprint of different final demand components in the Finnish economy in 2008, 2014, 2019, and 2023. The calculations include intermediate input flows between industries. The employment effects associated with the four final demand components are distributed across different industries. Private consumption is predominantly directed towards private services, public consumption towards public service provision, gross capital formation towards construction and private support services, and total exports towards manufacturing, information and communication, and private support services. As society has become increasingly service-oriented, the employment footprint has grown in public services, professional, scientific and technical activities, administrative and support service activities, and information and communication. In manufacturing, the employment footprint initially declined but has remained stable since 2014. The contribution of public consumption in total employment footprint has surpassed that of private consumption. These changes reflect shifts in the demand and production structures of the economy, changes in import intensity, and differences in productivity developments across industries.

Information om publikationen

Forskningsgrupp
Makroekonomi och den offentliga ekonomin
Serie
ETLA Raportit - Reports 184
Datum
11.11.2026
Nyckelord
Input-output model, Demand, Employment, Structural change
ISSN
2323-2447, 2323-2455 (Pdf)
JEL
C67, E23, J23
Sidor
30
Språk
Finska