Direct Request (CEACR) - adopted 2010, published 100th ILC session (2011)

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

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.