Purchasing power of JHL households recovers due to wage increases

Introduction

Social security cuts and the abolition of the earned income tax deduction further slow the recovery of purchasing power. Tax cuts targeted at high-income earners, historically large in scale, do not significantly increase the purchasing power of JHL families.

• Policy measures weaken purchasing power, while cyclical economic development partially supports it: household purchasing power will not recover without subdued inflation and growth in earned incomes.
• Purchasing power recovers slowly – decisions by the Orpo government do not support the restoration of living standards for low-income households.
• Tax reductions do not significantly improve the financial position of working people – changes in social security weaken the livelihood of students and part-time unemployed persons.
• The most important factor supporting purchasing power is the rise in wage income in 2025–2026; the impact of tax and social security changes is more limited.

The purchasing power review of JHL’s example households examines the development of incomes, taxes, tax-like payments, and purchasing power of four hypothetical households over the period 2022–2027. The calculations are produced by the Labour Institute for Economic Research (LABORE). (AI translation)

Publication Information

Nyyssölä, M. (2026), Esimerkkitalouksien ostovoima 2022–2027. JHL-kotitalouksien ostovoima palautuu palkankorotusten ansiosta, Ammattiliitto JHL:n yhteiskunnallinen julkaisusarja, Positio 6.

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