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Employment Service Convention, 1948 (No. 88) - Finland (Ratification: 1989)

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Observation (CEACR) - adopted 2022, published 111st ILC session (2023)

The Committee notes the observations made by the Federation of Finnish Enterprises (SY), the Central Organization of Finnish Trade Unions (SAK), the Finnish Confederation of Salaried Employees (STTK), the Confederation of Unions for Academic Professionals in Finland (AKAVA) and the Confederation of Finnish Industries (EK), transmitted together with the Government’s report.

Article 1 of the Convention. Contribution of the employment service to employment promotion. The Government refers in its report to the Local Government Pilots on Promoting Employment (1269/2020), which began on 1 March 2021 and will end on 30 June 2023 and involve a total of 25 areas and 118 municipalities. The Government is transferring responsibilities for employment and economic development services (TE services) to municipalities and strengthening their role as strategic partners. The pilot projects aim to increase the effectiveness of employment promotion efforts through enhanced coordination of the resources, skills and services of the State and municipalities. In this regard, a funding model is to be created for municipalities to enable them to develop their employment promotion activities in order to increase employment by 7,000 to 10,000 people, including for all jobseekers under the age of 30 and all immigrants and foreign-language speakers. The Government also refers to temporary amendments made to employment legislation and regulations, in particularly amendments made to Chapter 2, section 4, subsection 2 of the Act (1456/2016), which requires the authorities to provide jobseekers with the interview opportunities at regular intervals. Regarding the activities of the public employment service, the Committee notes the information provided by the Government drawn from the annual Employment Service Statistics. In particular, it notes that, in 2020, the number of job vacancies decreased, while the monthly registration of unemployed jobseekers increased up to 30 per cent compared to the previous year. In respect of the “Nordic job search model”, which seeks to reform both the provision of employment services and the criteria for receiving unemployment benefits as part of the implementation of labour market policy, the Committee notes the observations of EK, which emphasizes that the Nordic model should make use of private employment services, which play a significant role in matching labour supply and demand. The EK further observes that a portal should be built for private providers of TE services to give them access to the pool of applicants in public TE services. With regard to the public employment service (PES) reform, the Committee notes the information provided by the Government in its report on the application of the Employment Policy Convention, 1964 (No. 122), in particular the implementation of the TE-Digi project, which aims to modernize the electronic service system of the TE public services to better respond to the future needs of the employment services and the investment plan of the Ministry of Economic Affairs and Employment and KEHA Centre for the development of new knowledge-based management and operating models in TE services. The Committee requests the Government to continue to provide updated, detailed information, including disaggregated statistical data, showing the impact of the reforms on effective recruitment and placement of workers and on specialization by occupation or branch of activity within the employment services to respond adequately to the needs of jobseekers, including for groups in vulnerable situations, such as persons with disabilities and other groups, particularly those vulnerable to intersectional discrimination. It further requests the Government to provide information on the measures adopted or envisaged to facilitate effective collaboration between the public employment service and private employment agencies in order to achieve the optimal functioning of the labour market and contribute to the objective of full employment.

Article 9. Staff of the employment service. In response to the Committee’s previous comments, the Government indicates that the human resources in the Employment and Economic Development Offices (PES) have increased since 2017. In this respect, the Committee notes the statistics provided by the Government, which show that, in 2021, 3,963 persons were working in employment and economic development services (TE services). It further notes that the local government pilots on employment launched in March 2021 will change the structure of the Employment and Economic Development Offices of the PES, by transferring TE staff to municipalities. With regard to PES staff, the Government indicates that the Nordic labour market service model, which entered into force in 2022 and is designed to streamline and customize the job search process, will increase the resources for TE services by €70 million a year. More than 1,000 experts will be hired to provide customer service, representing an increase of 40 per cent compared with the resources of TE Offices in 2019. In this regard, the Federation of Finnish Enterprises (SY) observes that, while the Nordic job search model could improve the efficiency of the PES, the operations of the PES must be closely monitored and evaluated. In addition, the SAK, the STTK and AKAVA observe that labour market organizations are concerned about how high-quality services can be guaranteed for the unemployed, even with the additional resources mentioned by the Government. They emphasize that it is the quality of services and not their quantity that matters in meeting the needs of unemployed persons. The Committee requests the Government to communicate updated information on measures taken or envisaged to provide specialized training to the new and existing public servants in the public employment service to allow them to ensure a service which responds to the concerns of all unemployed persons, including disadvantaged categories of persons such as young people, older workers, migrant workers, workers with disabilities and those belonging to groups vulnerable to intersectional discrimination.

Observation (CEACR) - adopted 2015, published 105th ILC session (2016)

The Committee notes the observations made by the Central Organization of Finnish Trade Unions (SAK) and the Confederation of Unions for Professional and Managerial Staff in Finland (AKAVA) communicated with the Government’s report.

Article 1 of the Convention. Contribution of the employment service to employment promotion. In its observations, AKAVA indicates that unemployment and long-term unemployment has increased with respect to the unemployed with a higher education degree, adding that the quality of services and the special competence to match the needs of this group of unemployed persons have been seen as lacking in the Employment and Economic Development Offices (TE Offices). The Government indicates in its report that the service provision system within Finnish labour policy must currently weather the storm of many challenges. Structural changes are continuing at a swift pace, and more unpredictably than ever before, in both the labour market and in working life more generally. This notably increases the need for labour policy services and places greater demands on these services to be provided in new and more individually tailored ways. At the same time, the sustainability gap in public finances requires that services be provided more efficiently than before. The Committee notes that, in the face of this twin-pronged challenge, the Government launched a broad-reaching evaluation and development project of its labour policy service structure for the period June 2013 to April 2015. It notes in this regard that the evaluation of the labour policy’s service structure proposed that the efficiency and overall performance of the service system should be strengthened through on-going investment in strategically targeted development work. The Committee requests the Government to provide updated information on the impact and effectiveness of the activities carried out by the employment service and the manner in which it ensures “the best possible organisation of the employment market as an integral part of the national programme for the achievement and maintenance of full employment and the development and use of productive resources” (Article 1(2)). Please also continue to provide information on the number of public employment offices established, the number of employment applications received, the number of vacancies notified and the number of persons placed in employment by the offices.

Article 9. Staff of the employment service. SAK and AKAVA have been concerned about the resourcing of public employment services, which has already, for a long time, decreased both as to appropriations and especially to person-years. In this regard, SAK adds that cuts to employment appropriations have also had a negative impact on the implementation of the Youth Guarantee. In addition, SAK points out that during 2010–15, TE Offices’ personnel has been cut by almost 1,000. At the same time, the number of unemployed jobseekers and therefore new customers has grown by approximately 100,000. SAK is of the view that the workload has become unreasonable, and directing the unemployed to e-services has not improved the service level. The Government indicates that the goals of the reform of the public employment services are to strive for uniform management, uniform approaches, more flexible resource use and, through these, better effectiveness. It also indicates that with the organization change, the number of personnel was reduced and some tasks of the TE Offices’ administrative and human resources management were transferred to the Centre for Economic Development, Transport and the Environment (ELY Centre). The Committee notes that the development and administration centre for ELY Centres and TE Offices began its operation on 1 January 2015. The Committee requests the Government to continue to provide information on the impact of the reform of the public employment services in relation to employment service staff and employment services provided.

Direct Request (CEACR) - adopted 2006, published 96th ILC session (2007)

The Committee notes the Government’s report for the period ending in May 2005, as well as the comments of the Central Organization of Finnish Trade Unions (SAK), the Finnish Confederation of Salaried Employees (STTK) and the Commission for Local Authority Employers (KT), which were transmitted with the report.

1. Organization of the employment service. In reply to the Committee’s previous direct request, as well as earlier comments formulated by the SAK and the STTK, the Government indicates that a staff member of the employment service provides service on average to 150 unemployed jobseekers. It is assumed that this figure refers to annual output. The Government also points out that this ratio has been improving in recent years and that a key part of its employment policy programme is the reform of the public employment service to be carried out in 2004-06, which also includes a considerable increase in resources. The Government indicates that the number of labour service centres or joint service offices has increased from 29 in 2004 to 34 in 2005 and should reach 40 centres in 2006, while 280 new posts will be established in the labour administration. It further explains that the labour administration personnel benefit from adequate training since all labour policy reforms carried out in recent years have been complemented by comprehensive training on a national, regional and local level. It also indicates that new Acts on public employment services were enacted in 2003 and 2005, amending entirely the former legislation on the services, support and benefits provided by the labour authorities. The new legislation provides that the task of the labour authorities is to provide employment services, labour market training and other professional development services, as well as to provide possibilities for subsidized employment for unemployed persons. The Committee asks the Government to keep it informed of the outcome of its reform of the public employment service, with a view to achieving the best possible organization of the employment market and to meeting the changing requirements of the economy and the working population (Article 1 of the Convention).

2. Cooperation of the social partners. In reply to the Committee’s previous direct request, the Government indicates that, while there have been no initiatives so far aimed at establishing regional tripartite committees, there are, alongside the local employment offices, labour committees whose tasks are statutory. These committees, which are tripartite, issue labour policy statements on the rights of individual unemployed persons to receive unemployment benefits and also operate as expert bodies on the development of local labour market issues and public employment services. The Committee notes that, while the STTK considers that the social partners were completely overlooked in the drafting of the reform of the public employment service and that various issues had not been discussed in advisory committees, the SAK for its part has expressed concern over inadequate resources for the labour administration. In view of the above, the Committee invites the Government to keep providing information on the active cooperation of representatives of employers and workers in the organization and the operation of the employment service, and in the development of employment service policy (Articles 4 and 5).

Direct Request (CEACR) - adopted 1998, published 87th ILC session (1999)

The Committee takes note of the Government's report and the comments of the Confederation of Finnish Industry and Employers (TT), the Employers' Confederation of Service Industries (LTK), the Central Organisation of Finnish Trade Unions (SAK), the Confederation of Salaried Employees (STTK) and the Confederation of Unions for Academic Professions (AKAVA), which have been transmitted with the report.

The Committee notes the explanations provided by the Government in reply to its previous direct request concerning the effect given to Article 4 of the Convention. The Committee notes that the STTK considers that regional tripartite labour market and training policy committees should be set up and that labour commissions should be developed as sources of expertise on the local labour market. The Committee would be grateful if the Government would indicate in its next report whether new measures have been taken or are being contemplated to improve cooperation of employers' and workers' organizations at the regional and local levels.

Referring also to its observation on the application of Convention No. 122, the Committee notes with interest that the reform of labour market policy, which was introduced in early 1998, re-enforces the activities of the employment service in providing individual and regular assistance to individuals looking for employment, including assistance for the long-term unemployed. However, the Committee notes that, according to the SAK, the number of jobseekers for each client service employee is still too high and one-third of client service employees are working in a subsidized post for an average of only six months. The STTK points out the need for employment service staff to undergo further training. The Committee is of the opinion that the new responsibilities entrusted to the public employment service in the context of labour market policy make it essential to ensure that there are enough employment service staff and that they have the required training. The Committee invites the Government to indicate the measures taken to that end, bearing in mind the provisions of Article 9 of the Convention.

Direct Request (CEACR) - adopted 1994, published 81st ILC session (1994)

Article 4 of the Convention. The Committee notes the information supplied by the Government in reply to its earlier comments, and in particular that concerning the composition of the Council for Labour Affairs, the Labour District Committee and local labour commissions, as well as the procedure for the appointment of employer and worker representatives on these bodies. It also notes the observations of the Central Organization of Finnish Trade Unions (SAK), the Confederation of Unions for Academic Professionals in Finland, the Confederation of Finnish Industry and Employers (TT) and the Employers' Confederation of Service Industries (LTK). According to the statement of the SAK, the labour commissions do not deal with employment service matters on a local level in practice, but merely decide on the right to unemployment benefits. In the opinion of the TT and the LTK, the appointment of labour commissions and labour districts committees has not been carried out in a satisfactory manner, and their proposals have not been duly taken into account. The Committee would be grateful if the Government would refer to these observations in its next report, making such comments as it considers appropriate, in connection with the application of this Article.

Direct Request (CEACR) - adopted 1993, published 80th ILC session (1993)

The Committee has noted with interest the information supplied by the Government in its first report on the application of the Convention. It would be grateful if in its next report the Government would supply additional information on the following point.

Article 4, paragraph 3, of the Convention. The Committee notes from the Government's report that there are advisory committees for manpower services at the Ministry of Labour, as well as at the regional and local levels. It also notes that section 8 of the Placement Act of 1959 contains provisions according to which the members of advisory committees at the regional level shall be so selected as to represent employers and workers in equal numbers and the central employers' and workers' organizations shall be given an opportunity of nominating their candidates for these committees. Please describe in more detail the composition of the advisory committee at the Ministry of Labour and of the local committees, as well as the procedure for the appointment of employer and worker representatives on these committees, indicating, in particular, whether such representatives are appointed in equal numbers after consultation with representative employers' and workers' organizations, as required by this Article of the Convention. In this connection, the Committee notes the observations of the Commission for Local Authority Employers (KT) which expressed the opinion that local authority employers should be represented in the local committees.