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1. The Committee notes the Government’s comprehensive report for the period ending on 31 May 2003 and the appended documents and information supplied in relation to its 2002 observation. The Committee also refers to its comments made this year on the application of the Paid Educational Leave Convention, 1974 (No. 140), and on the Human Resources Development Convention, 1975 (No. 142).

2. Policies to promote employment. The Committee notes that the Government had completed the basic reform (the "second wave") of public labour market policy in application of the Action Plans for 2001-02. According to the information provided, slow economic growth in 2001 and 2002 had not increased overall unemployment. The Government reports that the activity rate remained at the same level in 2002 as in 2001. The number of employed varied between different age groups with increases among older persons and decreases among 15-19 year-olds. The Committee further notes with interest the information the Government provided on the adoption in 2003 of a new comprehensive policy programme comprising four inter-sectoral policy programmes focusing on employment, entrepreneurship, the information society and citizen participation, including a renewed commitment to raise the employment rate close to 70 per cent. The Committee notes that the objectives of this Policy Programme are of particular importance towards achieving the objectives of Articles 1 and 2 of the Convention, and it would appreciate disposing of further information on the implementation and impact on the labour market of these programmes.

3. Active labour policy measures. The Committee notes that the 2003 Policy Programme is intended to entail a shift in emphasis from passive labour market support to active measures, and that regional and local collaboration will be furthered through a more effective management of the labour force service centres. The Central Organization of Finnish Trade Unions (SAK) is concerned, however, about the overall participation rate of unemployed in active measures. The participation rate in 2002 was only just over 20 per cent, i.e. just over the EU minimum.

4. In this respect, the Committee notes that the 2003 Policy Programme includes the implementation of a structural reform of the public employment services. In order to eliminate structural unemployment, labour exchange functions will be separated from the provision of support for those with reduced working capacity. It also notes that the SAK and the Finnish Confederation of Salaried Employees (STTK) consider the employment offices to be under-resourced or the resources inappropriately apportioned, and that this has had a particularly negative effect for the long-term and recurrently unemployed. STTK adds that efforts by the public employment services to correct imbalances in the gender ratio of the labour market have been insufficient.

5. The Committee further notes that the Government is seeking to develop a new system which will enable it to respond more effectively and flexibly to needs in the area of adult vocational education. In addition, specific reforms have already been undertaken concerning the organization and financing of  vocational training. STTK indicates that the 2003 Policy Programme seems to pay too little attention to the question of upgrading the competence of those who worked and helped them to cope.

6. The Committee notes with interest the trend with regard to older workers. The Government reports that not only has the size of the 55-69 age group grown, but the activity rate has also increased from just under 50 per cent in 1997 to 65 per cent in 2002. Moreover, the unemployment rate for this age group decreased from 16.9 per cent to 9.1 per cent in the same period. The Government attributes this to the National Programme for Ageing Workers, launched in 1997, whereby various ministries, the social partners and others cooperated in an effort to improve the labour market situation of older workers. The Committee views this national programme, aimed at changing the usual labour market response to older workers by pensioning them off to improving their employability, as most innovative. The Committee requests the Government to keep it informed of efforts made in this regard.

7. The Committee notes that among the measures initiated to improve services for immigrants at employment offices, the MaaTyö project had been concluded and that the lack of resources and the identification of multiskilling requirements had been the major challenges for this project. It also notes that one of the conclusions was that special support was particularly required when immigrants were to switch from integration services to normal services. SAK also remarked that the unemployment rate among immigrants was still three times that of native Finns.

8. Participation of the social partners in the formulation and application of policies. Furthermore, the Committee notes that, according to the Confederation of Finnish Industry and Employers (TT) and the Employers’ Confederation of Service Industries in Finland (Palvelutyönantajat), social partners had been consulted only very late in preparing new legislation, in particular in relation to the preparation of the new legislation on employment services (Article 3).

9. The Committee would appreciate receiving more details in the Government’s next report on the ways in which the Government and the social partners have addressed the matters noted in this observation.