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Articles 1 and 2 of the Convention. Active employment policy and employment trends. The Committee notes the information provided in the Government’s report received in September 2009 in reply to its 2008 observation, including remarks from the Central Organization of Finnish Trade Unions (SAK). SAK expressed concern about the sufficiency of resources for employment and economic development offices since the Government’s productivity programme is increasing pressure to reduce human resources in labour market institutions. The Government indicates in its report that the aim of its economic strategy is to enhance employment and increase productivity. The global economic crisis resulted in a declining employment rate and higher unemployment. The weaker economic situation was reflected in the number of 2008 dismissals while employers were striving to retain their workforce and resorted to temporary lay‑offs rather than permanent redundancies. In 2008, the average number of unemployed persons was 172,000, with an unemployment rate of 6.4 per cent, which may increase to 8.5 per cent in 2010. At the end of July 2010, the number of persons who had been unemployed without interruption for more than a year amounted to 57,100; this figure demonstrated an increase of 16,100 from the previous year. The Committee notes that the main priority identified in the Finnish Reform Programme 2008–10 was economic stability and the sustainability of public finances. The Government reports that key measures included extending work careers, improving tax incentives, benefit systems, wage formation and improving the balance between labour demand and supply. The Government’s revival measures are targeted at construction, research and development activities, investment subsidies, export financing, labour force and educational policy measures. Micro-economies are promoted by developing competencies, innovations, entrepreneurship and by enhancing the market functioning. The SAK notes in its comments that committees for the promotion of employment, formed on the basis of the former labour force committees, would contribute to improved foresight into future changes and preparation for structural change and transitional situations on national, regional and entrepreneurial levels. The Committee invites the Government to provide information in its next report on policies and programmes promoting employment and to indicate the manner in which social partners are participating in the design and implementation of an active employment policy to overcome negative effects of the crisis.

In relation to its previous comments, the Committee notes that Act No. 464/2009 has extended the change security operating model that was approved in 2005. In this respect, job applicants reporting to the Employment and Economic Development Office with a minimum of five out of the past seven years of service are entitled to an employment programme related to the change security operating model. This measure intends to promote employment for those who are unemployed due to the economic recession and to improve their possibilities to participate in training schemes. The Committee notes that the Ministry of Employment and the Economy is preparing a flexicurity project based on the key principles of the EU’s Lisbon Strategy for growth and employment. An analysis of the functionality of the labour market, regulation of working life and quality of working life has been conducted to compile joint national principles for the Government and social partners which will help identify how to ensure future performance of the labour market and working life development. The Committee invites the Government to include information in its next report on the impact of the measures taken in order to provide lasting employment for workers affected by the crisis.

Older workers. The Committee notes that in the period 2006–08 unemployment among older people decreased by 9 per cent (22,000 people) and continued to decrease by 7,700 people despite the slower growth rate in the last quarter of 2008. The Government foresees that due to the crisis, favourable development in both long-term unemployment and employment of older workers could worsen. Pension system incentives, early retirement options, quality of working life and citizens’ awareness of issues related to work during retirement all have a role to play in extending the working lives of older people. In its General Survey of 2010 on employment instruments, the Committee noted that the five-year National Programme for Older Workers had proved effective in responding to the problems of availability of the workforce arising from demographic changes and that the average actual age for retirement had increased from 59.1 years in 2005 to 59.5 years in 2007 (see General Survey, op. cit., paragraph 163). The Committee invites the Government to continue to inform regarding measures implemented in order to ensure labour market participation for older workers.

Young workers. The Committee notes the information regarding the unemployment rates of young persons and that unemployment is higher among young men (58 percent) than young women (42 percent). According to Eurostat, unemployment among young people under 25 years of age was 22.3 per cent in July 2009. The Government reports that young persons under 25 years old who remain unemployed for at least three months without interruption are eligible for services including: job-search training, preparative or occupational labour market training, trial work placements, on-the-job training, preparatory training for working life, start-up grants, or wage-subsidized work through public employment services. In 2009, the Ministry of Employment and Economy appointed a broad-based working group to examine problems related to young workers entering the labour market and the possibilities for solving their challenges with the help of public employment services. The Committee invites the Government to continue to provide information regarding the measure taken to increase opportunities for young workers to find lasting employment.

Public employment services. The Government reports that public employment services offered to the intermediate labour market primarily include labour market measures (work trial, trainee work and preparation for working life arranged at the workplace), subsidized work and vocational training. In 2007–09, the operations of the network of labour force service centres were enhanced and established, focusing on special operational control and management issues and on the definition of criteria for eligible customers. Two follow-up studies have been published on the structural reform of public employment services. As a result, recommendations regarding labour force service centres will be handled by a nationwide steering group comprising participants from the Ministry of Employment and Economy, the Ministry of Social Affairs and Health, the Social Insurance Institution of Finland (KELA), the Association of Finnish Local and Regional Authorities. The Committee further notes the information provided by the Government in its report on Convention No. 88 for the period ending in May 2010. The Government reports on new measures taken to improve services for jobseekers through Employment and Economic Development Offices’ which include an assessment and job search plan prepared within the first two weeks of their pursuit for employment. The Government also indicates assistance for young people under 25 years old to more quickly apply for trainee positions. The Committee requests the Government to provide information on how the labour force service centres and the economic development offices are contributing to help workers find the most suitable employment and for employers to secure the most suitable workers.

Training policies. With regards to vocational training dispensed in partnership with private enterprises, the Government reports that their objective was for this training to amount to 15 per cent of the labour market training, although in 2008 it accounted for only 7.9 per cent of the trainings. The Government reports that there is no statistical information available regarding the impact that these measures have had on the incorporation of participants to the labour market. The Committee invites the Government to report on the impact of the measures implemented and the manner in which the social partners participate in the design and implementation of training policies and programmes.

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The Committee notes the information contained in the Government’s report received in October 2007, the attached documents and the information sent in reply to the observation of 2006. It also notes the comments from the Central Organization of Finnish Trade Unions (SAK).

1. Articles 1 and 2 of the Convention. Active employment policy measures. In reply to the observation of 2006, the Government indicates that thanks to the five-year National Programme for Older Workers, the employment rate for this category has increased to reach the level that existed before the economic recession of the 1990s. According to the data published in the OECD Factbook 2008, the employment rate for the 55–64 age group was 54.5 per cent in 2006. The proportion of persons who took early retirement also decreased. The Government thinks that the National Programme for Older Workers has proved effective in responding to the problems of availability of the workforce arising from demographic changes. According to a report published by the Finnish Central Pensions Office in April 2008, the average actual age for retirement increased from 59.1 years in 2005 to 59.5 years in 2007. The Veto National Programme, which began in 2003 and is intended to motivate older workers to continue working for an additional two or three years, also continued during the period covered by the report. However, during the period examined, the employment situation for young people did not improve; in 2006, the unemployment rate for young people under 25 years of age was more than two times greater than that of the working population as a whole (18.8 and 7.7 per cent, respectively, according to OECD statistics). The Government points out that, in the context of the reform of the mode of operation of employment offices carried out between 2004 and 2006 as part of the reform of public employment services, 44 job centres have been created to assist jobseekers. The Committee invites the Government to continue to supply information on the effects of measures intended to improve job opportunities for older workers who wish to remain in the labour market. It requests the Government to include in its report information on the way in which recently adopted measures to combat youth unemployment have increased opportunities for lasting employment for young people entering working life. It also requests the Government to continue to supply information on the effects of the reform of public employment services on the pursuit of the objectives of the Convention.

2. Measures in favour of workers affected by change in the enterprise. The Committee notes the adoption, on 30 March 2007, of the Act on Cooperation with Enterprises with the objective of supporting employment in the event of change in the operations of the enterprise. Apart from timely communication on the current situation and future projects of the enterprise, the Act also provides for measures enabling employees to be consulted on decisions concerning their work and their position in the enterprise. Furthermore, the Act of 1 July 2005 on Change Security also aims to improve the situation of workers facing dismissal or dismissed for economic or production-related reasons. The Committee would like to receive information on the experience of the social partners with regard to the impact on job creation of measures taken in favour of workers affected by changes in enterprises.

3. Training policies. The Government indicates that, in 2006, 69,000 persons commenced training in the form either of advanced vocational training or as a diploma course in vocational training. In accordance with the Finnish Government’s programme announced on 15 April 2007, resources will be allocated to increase the volume of vocational training dispensed in partnership with private enterprises and also for subsidized employment within them. The Committee asks the Government to indicate in its next report the results in terms of employment of the training dispensed jointly with private enterprises.

4. Article 3. Participation of the social partners. The Committee notes the comments formulated by the SAK, which expresses satisfaction at the reforms implemented, and notices that unemployment has decreased, even among older workers and the long-term unemployed. However, the SAK fears that the possibilities for long-term jobseekers to find work might suffer from the fact that the Government is orienting its employment policy towards greater cooperation with private enterprises. Furthermore, the SAK considers that linking employment policy resources to changes in the employment situation will lead to those resources being reduced and to a deterioration in the structure of unemployment. The SAK notes that, during the previous Government, employment measures were drawn up in cooperation between labour market organizations and the Government. Moreover, the SAK indicates that the new Government has declared in its programme that measures such as protection in the case of change, employment insurance and reforms relating to adult education will be drawn up in collaboration with labour market organizations. The Government, for its part, states that labour market organizations have actively participated in the drawing up of the Act on Change Security. In this regard, the Committee would be grateful if the Government would continue to supply information on the way in which account is taken of the opinions of employers’ and workers’ representatives and other stakeholders in the preparation, application and revision of employment policies and programmes.

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The Committee notes the detailed information contained in the Government’s report received in October 2005, as well as the appended documents and information supplied in relation to its 2004 observation, which includes the National Action Plan for Employment 2004. It also notes the comments of the Central Organization of Finnish Trade Unions (SAK) and the Commission for Local Authority Employers (KT), which were transmitted with the report.

1. Policies to promote employment. In reply to the Committee’s 2004 observation, the Government indicates that its four inter-sectoral policy programmes (employment policy programme, entrepreneurship policy programme, information society programme and “citizen influence policy programme”), which were initiated in 2003, are progressing according to plan. The employment policy programme, which aims at reducing structural unemployment and ensuring the availability of labour, has had a positive impact since 2004, as shown by the statistics on employment which have been on an upward trend in the past few years. This programme also includes a structural reform of the public employment services, in which there has been a noticeable increase in resources directed to the labour services centres, as well as the creation of 280 new positions. As regards the entrepreneurship policy programme, the Government indicates that the corporate and capital tax base was lowered and the taxation on “generational changes” in companies was eased. Furthermore, the start-up grant system was reformed at the beginning of 2005 and is now available to unemployed persons, persons who become entrepreneurs after having been employed or done household work and anyone who has completed their studies. As regards the information society programme, the Government indicates that approximately half of the 1.5 million citizens who were lacking information technology and communication skills in 2000 acquired them during the period 2000-03.

2. Active labour policy measures. The Government indicates that, in accordance with EU goals, attempts have been made to activate people who are unemployed and outside the labour market with various types of measures. The Government is seeking to improve employment by 100,000 persons by the end of 2007 and trying to achieve an employment rate of 75 per cent by 2011. Regarding young people, the aim is to reduce unemployment among this category through vocational training and an active social policy. According to a special guarantee provided by the law, every jobseeker under the age of 25 will be offered an “active option” for a job that improves his/her situation when the person has been unemployed continuously for three months. The Government’s target is that, by 2008, at least 96 per cent of those completing comprehensive school should move on during the same year to upper secondary school, vocational training or additional comprehensive education. With regard to female workers, the Government recalls that the strong position of women on the labour market is based on the high level of education. Nevertheless, the Government initiated in 2005 an ongoing programme intended to increase the number of women in middle and upper management positions.

3. With regard to older workers, the Committee notes that the employment and activity rate of that group has been increasing regularly over recent years. The Government mentions in this regard the VETO programme which is intended to extend professional careers by making work more appealing, developing the work environment and work community, encouraging lifelong learning as well as promoting rehabilitation. Furthermore, the restrictions on early retirement and part-time employment for senior employees introduced in the part-time pension system have had a positive influence on keeping these workers in the labour market. Regarding immigrants, the Government indicates that their employment situation has improved due to higher demand for labour in the service sector and the fact that an increasing number of employers have had positive experiences in hiring immigrants.

4. The Committee further notes the Government’s efforts to develop active labour policy programmes and skills. To this effect, the Government is preparing an employment support system reform that should be introduced in 2006. The planned changes are expected to increase subsidized employment by creating jobs for jobseekers. According to the Government, the current system, too detailed in its current form, has not encouraged companies to use it and therefore hopes that the reform will increase the active use of labour market support. The Committee also notes that the major goals of the Government’s labour policy strategy include an unemployment rate of 6 per cent by 2007 and 5 per cent by 2010, keeping employees in working life two or three years longer than previously and improving the employment rate among senior employees. The Committee looks forward to being provided in the Government’s next report with an assessment of the impact of its active labour market measures, including information on the extent to which these measures, and in particular the initiatives taken to keep older workers in employment longer, have been successful in achieving its objectives of increasing the labour force and reducing unemployment. Please also continue to supply detailed disaggregated information on labour market trends (Articles 1 and 2 of the Convention).

5. Participation of the social partners in the formulation and application of policies. In reply to the Committee’s previous observation, as well as comments formulated by the social partners, the Government indicates that, when drafting legislation on employment services, the social partners, who are members of the Labour Policy Delegation, had the opportunity to discuss the draft on six different occasions in 2002. In addition, the social partners had an opportunity to give their comments during the legislative process. The Committee notes this information and, taking into account the comments formulated by the Central Organization of Finnish Trade Unions (SAK) and the Commission for Local Authority Employers (KT), it asks the Government to keep providing information on the consultations held with representatives of the persons affected, both at the stage of formulating employment policies and in relation to the implementation of the measures adopted under such policies (Article 3).

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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.

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The Committee notes the Government’s detailed and comprehensive report for 1 June 2000 to 31 May 2002, and the appended documents and information supplied in response to the 2001 observation. The Committee notes in particular the detailed information provided concerning overall and sectoral development policies.

1. Articles 1 and 2 of the Convention. The Government states that unemployment decreased from 9.8 per cent in 2000 to 9.1 per cent in 2001. The rate of employment rose to 67.7 per cent in 2001, but was expected to decrease slightly in 2002. However, structural unemployment remains high, as indicated by labour shortages; and significant regional differences persist. The number of long-term and recurring unemployed remains high, particularly among youth and older workers, but the inflow is decreasing. The employment rate for women rose to 65.4 per cent in 2001, while unemployment fell to 9.7 per cent. However fixed-term contracts remain prevalent among women workers and the labour market remains largely segregated by gender.

2. The Government states that the Ministry of Labour established a working group in December 2000 to prepare for the "second wave" of the basic reform of public labour market policy. The working group published a report in January 2001, which set out basic targets. The Action Plan for 2001 included the goals of raising the employment rate, improving the functioning of the labour market, improving the strategy for strengthening workers’ skills, and addressing the changing age structure of the workforce. The Action Plan for 2002 added the goal of improving the system of lifelong learning, and the Government aims to reach an employment rate of 70 per cent in 2003. The Committee would appreciate receiving further information in future reports on the extent to which these goals were attained.

3. Article 3. The Committee notes the information provided concerning tripartite consultations on employment policies, and that the Confederation of Unions for Academic Professionals in Finland (AKAVA) considers that tripartism is well respected in Finland.

Lastly, the Committee again notes the following comments supplied by the social partners:

-  The Central Organization of Finnish Trade Unions (SAK) considers that active labour market policy in Finland is insufficient, in light of the fact that expenditures have been reduced for training and subsidized employment. Furthermore, SAK believes that the support provided to the long-term unemployed should be better tailored to their needs.

-  The Finnish Confederation of Salaried Employees (STTK) states that the Government should focus on new measures for labour market training, apprenticeships and other subsidized employment. It opposes structural changes that may violate collective agreements on wages and salaries. It is concerned that restricted use of subsidized employment may exclude jobseekers with reduced employment potential from the labour market. It is also concerned that the use of electronic placement services may prevent some jobseekers from using the service. Lastly, STTK considers that the training system should be monitored better for quality.

-  AKAVA stresses that the continued improvement of employee skills is the key to overcoming recruitment problems. In its view, the financing of adult vocational education is becoming an important issue in light of the growing needs of highly trained workers; training should be made more flexible for working adults; and new ways should be found for employers to contribute more to the cost of training. In reply, the Government states that the Ministry of Education has established a committee to study funding proposals for training.

-  For its part, the Commission for Local Authority Employers (KT) thinks that the main problem in the Finnish labour market is high unemployment of youth and older workers, and high unemployment in certain regions. It points out that the ageing workforce means that there will be labour shortages in the long term.

-  SAK and STTK also expressed concern about the labour market with regard to immigrants, in particular the level of skills demanded.

The Committee trusts that in its next detailed report, the Government will also include information on the follow-up given to these comments.

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The Committee notes the information contained in the Government’s report for 1 June 1998 to 31 May 2000, as well as information supplied in response to previous comments.

1. Article 1 of the Convention. The Government states that GDP grew by 5.9 per cent in 1997, 4.7 per cent in 1998 and 3.5 per cent in 1999. Employment rose by about 2.25 per cent per year from 1995-99. The employment rate reached 66 per cent in 1999. Growth in employment was mainly in industry, business services and construction. Part-time employment as a percentage of total employment increased from 11.4 per cent in 1998 to 12.1 per cent in 1999. Unemployment decreased from 11.4 per cent in 1998 to 10.2 per cent in 1999, with 10.7 per cent for women and 9.8 per cent for men. Long-term unemployment decreased to 27 per cent of total unemployment in 1999.

2. Unemployment among older workers has decreased only slightly. The Government is concentrating its employment services (training and rehabilitation) on 55-59 year old jobseekers. It has changed the law to make employers responsible for paying unemployment pensions for older workers, as an incentive to retain them. The Government also has raised the lower limit to retire from 58 to 60, and removed measures that penalized older workers who accept low-paid temporary work. The Government has established the National Programme on Ageing Workers to boost employment of older people and conduct research on issues of discrimination against older workers and early retirement. The Committee notes this information with interest and requests further details on the outcome of these efforts to increase employment of older workers.

3. Other structural problems requiring more specific action include repeated unemployment, long-term unemployment and increasing labour and skills shortages in some professions. The Government mentions the following programmes: the Special Quality Strategy 1999-2001; the Workplace Development Programme to upgrade skills, improve organization and productivity of enterprises and improve the quality of life of workers; and the programme for conversion training which builds on early studies and work experience for professions with bottlenecks. Please provide further information on the impact of these programmes on employment promotion. The Government also briefly mentions the EQUAL programme for target groups. Please provide further information on which groups are targeted, the specific programmes involved and their impact on employment promotion for these groups.

4. Article 2. The Government states that a European Union peer review undertaken in 1999 determined that reform of the labour market had been successful and results were mostly positive, but that too little attention has been paid to influencing the functioning of the labour market and labour demand. Consequently, Action Plan 2000 aims to ensure the efficient functioning of the labour market, enhance the availability of jobseekers and encourage older workers to continue working two to three more years. It sets the goal of raising the employment rate to 70 per cent. The Finnish Confederation of Salaried Employees (STTK) considers that the Government is not able to make proper use of experiences from projects implemented with support from the European Social Fund in drafting and implementing education and social policy or in anticipating the skills needs of business and industry. However, the Government states that the Ministry of Labour launched a project in 1999 to systematically assess the effectiveness of employment policy. The preliminary proposal establishes four key perspectives for assessments: effectiveness, process, customer, and staff. The assessment from the point of view of effectiveness was finished in 2000, and looked at employment effects, effects on functioning of the labour market, effects on equality of opportunity and effects in the workplace. Please continue to provide information on these assessments and any follow-up action taken.

5. Article 3. The Committee notes that the social partners and other representatives contributed to preparing the Action Plans for 1999 and 2000, and participated in monitoring implementation of the previous plans. Furthermore, the Central Organization of Finnish Trade Unions (SAK), STTK, the Confederation of Unions for Academic Professionals in Finland (AKAVA) and the Commission for Local Authority Employers (KT) are all satisfied with the improvements in tripartite cooperation in preparing and monitoring the Action Plan for Employment.

Lastly, the Committee notes the following comments supplied by the social partners:

-  The SAK and the STTK consider that the active employment policy lacks sufficient funding for the number of unemployed jobseekers and the statutory duties imposed on the employment service. The heavy caseload of employment officers makes it impossible to direct sufficient active measures to the long-term unemployed and those in danger of exclusion who need personal services.

-  The SAK also considers that the Government has moved back to more passive measures to address unemployment.

-  The STTK adds that, in its view, self-motivated training is a failure for unemployed persons. The STTK criticizes the Government’s tightening of conditions for part-time supplement at the same time as employment policy is stressing the importance of keeping older workers in employment longer. It welcomes the sectoral analysis of labour needs that the Government has started and would like to see the immediate launch of the sectoral employment and labour needs programmes.

-  The STTK notes that unemployment for women is about the same as before and fixed-term contracts are still common in the public sector. The KT states that there is always a need for replacement staff in female-dominated sectors such as local government. Female employees are constantly offered fixed-term contracts but, on the positive side, work is always available.

-  The AKAVA considers that employment policy is increasingly split between measures directed at those doing well in the labour market, to prevent bottlenecks, and those in danger of exclusion. The need to continuously upgrade the skills of the employed requires other sources of funding besides the Government.

The Committee would appreciate receiving further information on actions taken by the Government in the light of these comments.

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1. The Committee notes with interest the Government's report for the period ending in May 1998, which contains comprehensive and useful information and transmits the observations made by the Central Organization of Finnish Trade Unions (SAK), the Confederation of Unions of Academic Professionals in Finland (AKAVA) and the Finnish Confederation of Salaried Employees (STTK).

2. The Committee notes that strong and sustained economic growth during the period has encouraged job creation and led to a fall in unemployment. The rate of unemployment, which in 1995 reached 17 per cent, fell to 14.5 per cent in 1997 and, according to OECD forecasts, should fall further to 12.4 per cent in 1998. The Government indicates that the growth in employment has benefited above all the most skilled young people, while older workers are particularly badly hit by long-term unemployment. The STTK considers that the persistence of long-term unemployment, which accounts for almost a third of total unemployment, reflects not only changes in the demand for qualifications on the labour market, but also a degree of discrimination against older people in the world of work. The STTK also draws attention to the slower fall in unemployment among women, who are increasingly being offered employment on fixed-term contracts and experience recurrent periods of unemployment, and to the number of jobs accounted for by involuntary part-time employment.

3. The Government considers that the improvement in the employment situation clearly shows the success of its policy and states that, through two successive agreements on incomes policy, employees have given their support to the Government's efforts to stimulate competitiveness and re-establish economic equilibrium. Furthermore, the Government considers that European Monetary Union should have a positive impact on growth by reducing interest rates and currency exchange risks. The Committee notes that the Government has attached to its report a copy of the National Action Plan for Employment which was based on the Guidelines produced by the extraordinary European Council on Employment which took place in Luxembourg in November 1997. The Committee asks the Government to continue to provide detailed information on the manner in which, in accordance with Article 2 of the Convention, the measures needed to promote employment are determined and reviewed regularly within the framework of a coordinated social and economic policy.

4. The Committee notes that since early 1998 labour market policy has been undergoing a general reform aimed at strengthening the advisory, training and job placement activities of the public employment service with a view to preventing marginalization of the unemployed. The STTK considers that this reform is appropriate, since it places the emphasis on the efficiency of the job-seeking process rather than on monitoring the unemployed, while the AKAVA points out that it has the advantage of stressing the quality of the measures adopted. The SAK, however, points out that employment office staff are too few in number, a problem which mostly affects the long-term unemployed. In addition, employment subsidies have been adjusted to make them contribute more effectively to the employment and training of the long-term unemployed. The Committee invites the Government to indicate the results of the different initiatives aimed at ensuring more effective targeting of active labour market policy measures, in particular with regard to older workers and the long-term unemployed.

5. Article 3. The Committee notes with particular interest that the different measures taken under the Government's employment programme, especially those aimed at ensuring "controlled flexibility" in the labour market with regard to hours of work or job security, have been drawn up in close consultation with the social partners. In this context, the Committee hopes that the Government will be able in its next report to indicate any further progress made in the fight against unemployment.

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1. The Committee notes the Government's detailed report and the observations made by the Confederation of Finnish Industry and Employers (TT), the Employers' Confederation of Service Industries (LTK), the Central Organization of Finnish Trade Unions (SAK), the Confederation of Unions of Academic Professionals in Finland (AKAVA) and the Finnish Confederation of Salaried Employees (STTK).

2. The Committee notes that the recovery in the growth rate resulted in an unemployment rate of 17.2 per cent in 1995, but that the fall in unemployment has slowed down since then. The STTK emphasizes that the economic recovery has only had a slight impact on the labour market, which remains affected by mass unemployment. The AKAVA draws attention to the rise in unemployment among graduates and the more general trend towards atypical forms of employment, including fixed-term employment in the public service. One serious aspect of the employment situation noted by the Committee is the growth in the proportion of long-term unemployment, which now accounts for over 30 per cent of all unemployment.

3. When it adopted its employment programme in 1995, the Government set the objective of reducing unemployment by half by 1999. In its report, it describes the principal components of its strategy to promote economic growth and employment, which consist of maintaining a low level of inflation by containing labour costs, reducing the public debt, lowering interest rates to encourage investment and consumption, decreasing taxes on labour, promoting entrepreneurship and the creation of small and medium-sized enterprises, strengthening education and training and seeking greater flexibility in the labour market, particularly as regards hours of work. The Committee notes that the organizations of employers and workers express contrasting opinions with regard to this strategy. In their common observations, the TT and the LTK consider that the Government is on the right track, but that the growth in production will not be sufficient to create new jobs rapidly. They consider that the programme does not place sufficient emphasis on flexibility and the reduction of the indirect costs of labour, which would require much more radical measures. However, the SAK is of the opinion that the Government's excessively restrictive monetary policy will prevent it achieving the objective of reducing unemployment.

4. The Government states that the projections for the convergence programme designed to fulfil the conditions required for European monetary union foresee an unemployment rate of 12.5 per cent in 1999, and that only a higher growth rate would make it possible to achieve the objective of the employment programme. The Committee notes that the Government's medium-term employment objectives are far from that of full employment within the meaning of Article 1 of the Convention, and that they are also combined with other objectives to which it may appear that higher priority is given. The Committee requests the Government to re-examine the measures to be adopted with a view to promoting, as a major goal, full, productive and freely chosen employment within the framework of a coordinated economic and social policy, in accordance with Article 2, and to transmit its own observations.

5. The Committee notes the information on the various active labour market policy measures which, under the terms of the Government's programme, should cover 5 per cent of the active population. For the TT and LTK, this objective is an error and it would be better to facilitate finding jobs on the open labour market. In contrast, the SAK considers that the number of beneficiaries should be further increased. In the light of the above terms of the Convention and in consultation with the representatives of the persons affected, the Committee requests the Government to examine measures designed not only to reduce the rate of registered unemployment, but also to generate new jobs, also taking into account the provisions of Convention No. 168 and the comments made by the Committee on the application of that Convention.

6. Article 3. The Committee notes that, according to the TT and LTK, the competent tripartite bodies in the field of employment and labour market policy do not operate in a fully satisfactory manner and that they are only informed so that they can discuss solutions already adopted. The Committee recalls that, under the terms of the Convention, representatives of the persons affected, and in particular representatives of employers and workers, have to be consulted concerning employment policies with a view to taking fully into account their experience and views and securing their full cooperation in formulating and enlisting support for such policies. It hopes that the Government will not fail to examine with the various representatives concerned more satisfactory arrangements for achieving this objective and that it will provide all the necessary information.

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1. The Committee notes the Government's report for the period ending June 1994, as well as the comments made by the Central Organization of Finnish Trade Unions (SAK) and the Confederation of Unions for Academic Professionals (AKAVA), which were transmitted with the report. It also notes the useful documentation attached to the report.

2. The information provided by the Government shows the continued deterioration during the reporting period of the worrying employment situation noted by the Committee in its previous observation. Unemployment rose rapidly in all sectors bringing the level of unemployment to around 19 per cent at the end of the period, compared with 12 per cent in 1992 and 3.5 per cent in 1990. However, the Government states that unemployment should decline slowly in 1994, as confirmed by the OECD in its survey published in February 1995. The SAK emphasizes that unemployment has quintupled since 1990 and has therefore grown more rapidly in Finland than in any other industrialized country. The AKAVA states that unemployment is also now affecting the public sector. The Government adds that one-third of young persons under 25 years of age are unemployed and that one unemployed person in five has been out of work for more than a year.

3. The Government reports various factors which have caused this sudden and unprecedented decline in economic activity and employment, such as the combined impact of the collapse of the export market to the ex-USSR, the recession on Western markets, and high interest rates. It considers that excessive borrowing and poor competitiveness forced the various sectors to reduce their demand for labour in order to maintain their profitability. The Government states that as a consequence the central aim of its economic policy is to reinforce the competitiveness of enterprises and put a stop to the growth in public expenditure. These objectives have been achieved in part as a result of the devaluation of the currency. However, the SAK considers that the Government has abandoned the long-term objective of employment policy, as illustrated by the replacement of the objective of full employment in its programme by that of "a high employment rate". The SAK also alleges that the Government knowingly allowed unemployment to increase to help achieve its objectives of reducing the deficit and inflation.

4. The Committee notes that the employment strategy of the labour administration "in a transition period", as explained by the Government, in recognition that Finland is drawing away from the ideal of a society with full employment, identifies youth and long-term unemployment as the most serious social problems. With regard to policy choices, according to the Government strategy established for the 1990s, priority has to be given to combating the segmentation of the labour market, which gives rise to exclusion, by affording particular attention to the difficulties encountered by older workers in adapting to structural changes and by young persons in seeking their first job. The role of the labour administration has now to be to encourage the adaptation of the labour supply, particularly through training measures, to the changing demand for labour, while at the same time adopting selective measures to influence the supply of labour. Furthermore, to promote demand for labour, the flexibility of the labour market has to be increased by modifying policy on hours of work and seeking new forms of work sharing. In this context of difficult adjustments, the services of the labour administration will have to respond to growing demand through greater local autonomy and the effective reallocation of their staff resources.

5. The Committee notes this general information on the reorientation of the labour market policy. However, it notes that the information provided on the training measures for the labour market which have actually been implemented does not show a significant increase during the reporting period in the resources allocated to such measures. It notes in this respect that, according to the SAK, the proportion of GDP allocated to active policy measures, which has only grown from 1 per cent in 1990 to 1.7 per cent in 1994, has not risen in proportion to the difficulties experienced, and particularly the rise in long-term unemployment. The SAK points out that the law has been changed to reduce the obligations of the State in this field. In this respect the Committee notes that the obligations established under the Employment Act of 1987, requiring the State and local authorities to provide temporary employment to unemployed youth and the long-term unemployed, which it noted in its previous observation had been substantially reduced, have since been completely abolished on the grounds that their cost was judged to be excessive.

6. The Government states that all important issues relating to employment policy are discussed with the social partners before political decisions are taken in the context of tripartite advisory bodies, such as the Council for Labour Affairs established under the Ministry of Labour and the Advisory Committee for Employment Policy. With reference to its previous observation, the Committee recalls that it would like the Government to provide information on any substantive debate that may have taken place on the position of the objective of full employment in its general economic policy. Noting the comments of the SAK, the Committee observes that the priority that has been given to reducing the deficit has resulted in the abolition of the measures established under the Employment Act of 1987, which were a major component of the employment policy pursued up to then. The Committee is bound to emphasize the importance, particularly in a context of recession and structural adjustment, of giving full effect to the provisions of Article 3 of the Convention, which requires the consultation of the representatives of the persons affected by the employment policy measures to be taken "with a view to taking fully into account their experience and views and securing their full cooperation in formulating and enlisting support for such policies". The Committee requests the Government to supply more detailed information in its next report on the consultations held, the opinions gathered and the manner in which they have been taken into account. In more general terms, the Committee hopes that the Government will be able to explain in its next report the manner in which its decisions in the field of economic policy, particularly in relation to budgetary and monetary policies, industrial and trade policies, and prices, incomes and wages policies have contributed, "as a major goal", to the promotion of full, productive and freely chosen employment.

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1. The Committee took note of the Government's report and of the comments of the Central Organization of Finnish Trade Unions (SAK), the Finnish Employers' Confederation (STK), the Employers' Confederation of Service Industries (LTK) and the Local Authority Employers' Commission (KT) which were included. It also notes the texts of the legislation amending the 1987 Employment Act which was supplied by the Government.

2. The information contained in the Government's report reveal a rapid and worrying decline in the employment situation. The deep recession in economic activity - characterized by a 6.5 per cent drop in production in 1991 - led to a 6.2 per cent decline in total employment in 1991. The unemployment rate, which rose from 3.5 per cent in 1990 to 7.6 per cent in 1991, reached 12 per cent in 1992. The drop in employment was particularly marked in industry, construction and commerce, and there was a sharp increase in unemployment among young people and long-term unemployment.

3. The Government indicates that its labour market policy, which is an essential component of its employment policy, is still based on the provisions of the Employment Act of 13 March 1987 (Legislative Series 1987-Fin. 1) which organizes the placement of unemployed workers and, where appropriate, requires the State and the municipalities to provide temporary employment for unemployed youth and the long-term unemployed. Implementation of this requirement, however, has not curbed the increase in long-term unemployment which affected 26,000 persons in 1992 - as opposed to 3,000 in 1990 - nor the increase in unemployment among persons under the age of 25, for whom the estimated unemployment rate in 1992 was 23 per cent. Furthermore, in view of the difficulties of applying the Act at a time of recession and high and rising unemployment, and in view of the objective of lower public expenditure, the obligations on public administrations and services have been considerably reduced. Thus, for example, municipalities are no longer required to provide full-time temporary employment, but only part-time temporary employment. The Committee notes in this connection that, according to the KT, the municipalities are having to reduce their own permanent staff and are experiencing great difficulties in finding enough jobs that match the skills of the unemployed and are likely to improve their chances of employment in the open labour market.

4. The Committee notes with interest the information concerning the measures taken to improve the efficiency of the employment services, and measures in the area of the development of human resources, particularly the promotion of training for the labour market in cooperation with enterprises, which was a measure designed and implemented as an alternative to lay-offs. The Committee asks the Government to refer in this connection to its comments under Convention No. 88, of which it examined the first report this year, and Convention No. 142.

5. In its comments on the Government's report, the SAK considers that the funds allocated to training for the labour market are inadequate. Although public expenditure on unemployment rose from 2 to 4 per cent of GDP during the period under consideration, saving measures mainly affected the programmes for the long-term unemployed. According to this organization, fiscal issues related to the equilibrium of the budget economy have been given more attention than the long-term targets of labour market policy. The OECD confirms in its study published in August 1992 that the relative share of resources devoted to active labour market measures has decreased.

6. It emerges from the information available to the Committee that labour market policy measures have not been able to contain growing unemployment, particularly youth and long-term unemployment. Moreover, full application of the provisions of the 1987 Act has been impaired by the requirements of a balanced budget, and the amendments to them have had the effect of limiting the financial commitment of the public authorities, which is likely to make the measures envisaged less effective. Should this prove to be so, the objective of "ensuring full employment", established in the 1987 Act, is likely to be put in jeopardy or postponed. The Committee would appreciate any information which the Government might be prepared to provide on any substantive debates that have taken place, particularly when the various amendments were made to the Act, on the question of full employment both as an objective and as a means of ensuring the right to work laid down in the Constitution.

7. If the foregoing evaluation of the employment situation is accurate, then the Committee suggests that it would be advisable to review in depth both the instruments of employment policy and, more generally, the "relationships between employment objectives and other economic and social objectives" (Article 1, paragraph 3, of the Convention). The Committee wishes to recall in this connection that under Article 2 States parties to the Convention must decide and keep under review, within the framework of a coordinated economic and social policy, the measures to be adopted for attaining the objectives of employment. It trusts that in its next report the Government will provide detailed information on the manner in which its choice of economic policy contributes to the promotion of full, productive and freely chosen employment, stating, in particular, how the measures adopted in the areas of budgetary, taxation and monetary policies, industrial and trade policies, and prices, incomes and wages policies contribute to attaining this essential objective. The Committee notes that section 5 of the Act of 1987, as recently amended, no longer requires the Council of Ministers to establish annually a list of short-term employment policy objectives, and asks the Government to indicate the procedures by which the commitment of the various ministerial departments and the coordination of their actions are now ensured in this area.

8. Lastly, the Committee notes the joint communication from the STK and the LTK concerning the representation of employers' organizations in the tripartite bodies set up in connection with the Ministry of Labour. The Committee also refers to its pending comments on Conventions Nos. 88 and 142, and would be grateful if the Government would indicate the procedures for the appointment of representatives of employers, workers or other persons affected who participate in consultations on employment policy and cooperate in its implementation, in accordance with the provisions of Article 3, to which the Committee pays a particular attention.

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Further to its previous observations, the Committee has noted the information supplied by the Government. It has also noted the comments of the Finnish Employers' Confederation (STK), the Employers' Confederation of Service Industries (LTK) and the Commission for Local Authority Employers (KT), concerning the ways in which representatives of the persons affected by measures of employment policy (especially the 1987 Employment Act) should be consulted in accordance with Article 3 of the Convention. The Confederation of Salaried Employees (TVK), as well as the STK and the LTK, considers that priority should be given to the development of the employment service (including the training of its staff). The KT wishes to be consulted in the labour administration advisory bodies (including the tripartite Employment Council) in its capacity as an employers' organisation. The Central Organisation of Finnish Trade Unions (SAK) states that labour policy measures are not enough in the task of promoting mobility of labour, whilst economic sanctions might conflict with the principle of voluntariness; it stresses the need for measures of housing policy in this context. The SAK also feels that the slight decrease in unemployment may be short-lived.

The Committee notes that the level of unemployment in Finland (5.1 per cent in 1987) continues to compare well with that of other OECD countries. In the light of the Convention's goals, it has noted with interest the measures provided in the 1987 Employment Act and Employment Ordinance, which aim at improving labour market operation and training - especially for the young unemployed - and correcting regional imbalances, in order to achieve full employment. It trusts that the need to apply these measures as a means of promoting the goals of the Convention will be given full weight in the context of overall economic policies (in the field of investment, fiscal and monetary affairs, trade and prices, incomes and wages), and that the next report will include information on the way in which these measures are implemented, taking all due account of the views of employers and workers and representatives of other persons affected.