Observation (CEACR) - adopted 2002, published 91st ILC session (2003)

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

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.