The functioning of the labor market has deteriorated in Finland over the 2012-2016 period, and there are now more job vacancies in relation to unemployed job seekers than before. The deterioration in the efficiency of matching can be associated with adverse developments in seven biggest travel-to-work areas. In other 63 regions, there are no clear signs of worsened functioning of the labor market, and there are number of regions that have suffered only from depressed demand for labor. The speed how registered job vacancies are filled has declined with a steady trend. The decline can be associated with the characteristics of unemployed job seekers and vacancies. Financial incentives for unemployed workers have declined after the financial cris is.The incentive level has been highest for young and educated males and lowest for young, less -educated females. The analysis indicates that there is a robust association between the incentive level and the probability of employment, and that the association has strengthened in 2010-2014.