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

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

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).