Direct Request (CEACR) - adopted 2011, published 101st ILC session (2012)

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

Articles 1, 2 and 3 of the Convention. Implementation of an active employment policy. Consultation with the social partners. The Committee notes the Government’s report received in September 2011 and the comments made by the Central Organization of Finnish Trade Unions (SAK) and the Commission for Local Authority Employers (KT). The Government indicates that its objective was to increase the number of employed persons by 80,000–100,000 and increase the employment rate to 72 per cent by the end of 2011. However, the global economic crisis and the pronounced decline of world trade had a major impact on Finnish industry and, in 2009, Finland’s GNP dropped by over 8 per cent. As a result of this, the employment targets of the Government programme were not met, even though the economy rebounded in 2010. The Committee notes that at its lowest point, in October 2009, the number of unemployed persons was 120,000 fewer than during the same period in 2008. However, by April 2010, the number of unemployed persons was slightly over 80,000 more than in April 2008. The employment rate was 67.8 per cent in 2010 and it slightly increased to 68.1 per cent in the second quarter of 2011. Between 2009 and 2010, the Government implemented financial and employment related stimulus policies that helped to impede the rise of unemployment. In 2010, the level of active employment measures was raised to some 100,400 persons, bringing the activation rate of the unemployed to 27.4 per cent. The Government indicates that the social partners participate in the planning of employment policy in the Council for Labour, Training and Trade Affairs. The Committee notes that in March 2010 the Government and the social partners decided on joint drafting of a sustainable economic growth and employment programme. The social partners also participated in the planning and implementation of employment policy in the tripartite flexicurity working group, led by the Ministry of Labour, which operated until the end of May 2011. Furthermore, the Committee notes the comments provided by the SAK highlighting the increase in long-term unemployment in 2010. The SAK is of the view that, in order to solve this problem, the Employment and Economic Development Offices should be provided with additional resources. The Committee also notes the information provided by the KT indicating that it will carry out a three-year ESF project titled “Anticipation of competence in municipal services” between March 2011 and December 2013. The underlying factors of this project include the operating environment of the municipal sector, which is experiencing rapid change, high-volume retirement, and the necessity of highlighting municipal-sector competence needs in both regional and national discussions and education planning. The Committee invites the Government to continue providing information on policies and programmes promoting full employment and to indicate the manner in which social partners are participating in the design and implementation of an active employment policy.

Public employment services. The Committee notes that the National Policy on Labour Force Service Centre Activity was approved in March 2010. The customer structure has been defined so that at least 50 per cent of customers receive labour market support, on the basis of unemployment, for at least 500 days and require multi-professional service. The duration of the service for individual customers is restricted to three years. Some 600 full-time labour administration, municipal and KELA employees are employed in Labour Force Service Centres. Moreover, around 80 part-time employees were employed. In 2010, around 13,000 unemployed jobseekers were supported at Labour Force Service Centres. The employment plan replaced, in May 2010, the previously separate and specific jobseeking plans, the revised specific jobseeking plan and the change security employment plan. Insofar as the change security model is concerned, the Employment and Economic Development Office will assess the conditions of entitlement to change security without a separate request from the jobseeker. The concept of being entitled to change security will replace the entitlement to access an employment programme. The Committee invites the Government to continue 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 employers to secure the most suitable workers.

Education and training policies. The Committee notes that in 2009 joint procurement related to labour market training accounted for 7.4 per cent of student workdays (target 15 per cent), while in 2010, it accounted for 5.7 per cent (target 10 per cent). The Government indicates that the effectiveness of joint procurement training far surpasses the average levels seen in vocational labour market training. Individuals that participate in joint procurement training while unemployed are twice as unlikely to remain unemployed after the labour market training. In 2010, close to 12,700 people participated in independent education or training supported by means of unemployment benefits, and between January and May 2011, the number of participants was 4,700. The social partners participate in the development and monitoring of labour market training. The Committee invites the Government to continue to report 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 participation of older unemployed persons in active labour policy measures saw a marked growth over the last decade. During the reporting period, the growth was focused on unemployed jobseekers between the ages of 55 and 59. Despite rapid growth, the activation rate of older people still amounts to a fraction of the activation rate of younger age groups. The Government further reports that older unemployed people experience greater difficulty in re-entering the open labour market. The share of people who commence labour market training who are over 50 years of age has remained unchanged over the past few years (around 16 per cent). The Committee invites the Government to continue to provide information on the effectiveness of the measures implemented to increase the labour market participation for older workers.

Young workers. The Government reports that planning and implementation of policies for the employment of young persons are carried out through inter ministerial cooperation. The key challenge is the dramatic increase in youth unemployment since the summer of 2008. The recession hit the industrial and construction sectors in particular, which primarily employ young men. In 2010, there were (on average per month) 33,256 unemployed people aged under 25. Unemployment among young persons has not increased since June 2010 when compared with the situation of the previous year. At the end of April 2011 there were 26,793 unemployed young jobseekers under 25 (17.6 per cent less compared to April 2010). The Government allocated a total of some 50 million euros of additional funding for young persons’ support measures in the 2010 budget. Moreover, the first supplementary budget in 2010 allocated additional financing for education and employment measures, with young persons as the primary target group. The wage subsidy for recruiting young people who recently completed their studies was extended to include apprenticeship training. A marketing and information campaign was launched at the beginning of summer 2010. The Committee notes that jobseekers were guaranteed a Sanssi voucher card that proves to an employer that he or she is eligible for a wage subsidy when being recruited. In May 2011, 20,950 young unemployed jobseekers had a Sanssi card; of these, 4,320 (around 21 per cent) moved into employment with the help of wage subsidy. It has been calculated that there is a total of some 40,000 young people (aged under 29) who are not in education, employment or training, and who have only a basic education (no post-secondary level qualifications). The Committee invites the Government to continue to provide information on the measures taken to ensure productive employment opportunities for young workers.