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Employment Policy Convention, 1964 (No. 122) - Finland (RATIFICATION: 1968)

Other comments on C122

Observation

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Articles 1, 2 and 3 of the Convention. Implementation of an active employment policy. Consultation with the social partners. The Committee notes the detailed information provided by the Government and the observations from the Central Organization of Finnish Trade Unions (SAK) and the Confederation of Unions for Professional and Managerial Staff in Finland (AKAVA), incorporated in the Government’s report. It notes that a resolution was issued on 31 May 2012 laying down the measures and structural reforms needed in order to secure the functionality of the labour market and labour supply, for the purpose of supporting economic growth, employment and welfare in Finland. Labour market organizations participate in the planning of employment policy in the Council for Labour, Training and Trade Affairs that was appointed by the Government for a new three-year term starting in January 2012. The intention is also to form a closer link between the work of the Council and the Government programme, the Government's strategy document and their practical implementation. The Committee notes that the Government has set as its goal to raise employment to 72 per cent and to lower the level of unemployment to 5 per cent. It notes that the employment rate was measured at around 69 per cent between 2011 and 2014. The Government indicates that increased structural problems in the job market cast a shadow over hopes for improved employment rates. Moreover, the number of unemployed jobseekers at the Employment and Economic Development Offices totalled 307,300 at the end of April 2014, an increase of 27,900 on the previous year. The unemployment rate was measured at 8.2 per cent in 2013 and 8.5 per cent was forecast for 2014. The Committee notes that the duration of the period that vacancies remain unfilled and long-term unemployment have increased. In its observations, SAK indicates that the activation of the long-term unemployed has reached a worryingly low rate. It adds that the number of the long-term unemployed also grew alarmingly in the course of the year and, despite all the negative developments, the Government will cut €55 million from the active labour policy’s funding. The Committee notes that the Ministry of Employment launched an evaluation of the services structure of labour policy in autumn 2013, and the final report will be completed in spring 2015. The Committee invites the Government to provide information on the policies and programmes addressing the issue of long-term unemployment, and on the evaluation of the services structure of the labour policy. Please continue to include information on the manner in which the social partners participate in the design and implementation of an active employment policy.

Public employment services. The Committee notes that, from the beginning of 2013, the services provided by the Employment and Economic Development Offices have been known as employment and economic development services (TE services). At the start of 2013, a total of 15 Employment and Economic Development Offices with the necessary number of service points have been responsible for the provision of the services. The Government indicates that the weakened economic situation and the growing customer volumes have unfortunately challenged the reform of the public employment service. According to SAK, the reform was too vast to be implemented at once and it also involved problems. For example, unemployed persons were not able to contact TE offices by phone and personal services were insufficient. Moreover, staff reductions were carried out at TE offices at a time when the numbers of the unemployed underwent a drastic increase. In its observations, AKAVA indicates that, since the start of the financial crisis, the number of unemployed jobseeker customers with a higher education degree has doubled in TE offices. Higher education graduates continue to find employment more easily than people with lower levels of education, but the difference has been diminishing continuously with the average increase in the education level of the working population. AKAVA adds that reforms to improve the situation have already been carried out but, as unemployment rates continue to grow also in highly educated population groups, it is necessary that this work be continued. The Committee invites the Government to provide further information on the impact of the public employment service reform and information on the impact of the measures implemented by the Employment and Economic Development Offices in contributing to help workers find productive employment opportunities.

Education and training policies and programmes. At the beginning of 2013, the new Act on public employment and business service introduced changes in labour market training. Labour market training now includes vocational labour market training and integration training for immigrants. Preparatory labour market training was replaced by training services that include career coaching, jobseeking coaching and work coaching. The Committee also notes the statistics provided on the number of participants in labour market training. It also notes that the Act on financially supported development of professional skills which provides financial incentives, such as tax deductions, to enterprises offering training to employees in order to improve their skills, came into force on 1 January 2014. The Committee invites the Government to continue to provide information on the impact of the measures implemented and the manner in which the social partners participate in the design and implementation of education and training policies and programmes.

Older workers. The Committee notes that the employment rate of older workers (55–64) was 58 per cent in 2012 and rose modestly to 58.5 per cent in 2013. The Government indicates that a pension reform is included in its structural policy programmes in order to raise their employment rate and retirement age. In this regard, a legislative reform will be prepared through tripartite negotiations and new legislation will take effect in 2017. The aim is to increase the average retirement age to a minimum of 62.4 years by 2025 (currently 60.9 years). The Committee notes the measures taken regarding older workers, including the Working Life 2020 programme which aims to improve the employment rate, quality of working life, well-being at work and work productivity, taking older workers into account as a cross-cutting issue. The Committee invites the Government to continue to provide information on the effectiveness of the measures implemented to increase the participation of older workers in the labour market.

Young workers. The Government highlights the prevention of social exclusion of young people as one of its flagship projects. In accordance with the Youth Guarantee, all young people either under 25 or under 30 and recently graduated will be offered a job, a traineeship, on-the-job training, a study place, or a period in a workshop or rehabilitation within three months of becoming unemployed. The Government reports that the youth unemployment rate was 19.8 per cent in 2011 and 19.9 per cent in 2013. The youth unemployment rate in Finland includes full-time students who are looking for part-time work. Excluding full-time students from the calculation, the youth unemployment ratio is usually half of the youth unemployment rate. A positive sign that has emerged is that despite the rising number of unemployed young persons, the average duration of youth unemployment has remained short. The average duration of unemployment among young people under 25 is 12 weeks. The Committee invites the Government to continue to provide information on the impact of the measures taken to ensure productive employment opportunities for young workers.