Bolstering the supply of labour has long been one of the most important objectives of economic policy in Finland. The impact of policy measures is typically greatest in those population groups who have available alternatives to paid work. Incentives and labour market structures are significant, particularly in influencing the decisions of the young in general, women of childbearing age and older workers and for furthering their chances of joining the labour market. When planning policy measures, we must be able to discern the extent to which observed employment developments are due to structural factors or to cyclical factors. Although the improved economic situation at present is attracting young people back to the labour market, improvements to the employment situation will require economic policy measures. In such measures, education is particularly important.