Direct Request (CEACR) - adopted 2025, published 114th ILC session (2026)

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

The Committee notes the observations made by the Central Organization of Finnish Trade Unions (SAK), the Finnish Confederation of Salaried Employees (STTK) and the Confederation of Unions for Academic Professionals in Finland (Akava), transmitted together with the Government’s report. The Committee requests the Government to provide its comments in this regard.

Articles 1 and 2 of the Convention. Implementation of an active employment policy. The Government refers to the transfer in March 2021 of the responsibility for providing employment-related services to customers to local government pilots on employment in 25 areas and 118 municipalities. One of the main objectives of this reform is strengthening the integration of employment services with local social services and the educational institutions of the municipalities and coordinating them with services provided at the state level. The Government informs about three evaluation reports of the local government pilots and according to the final one, published in January 2024, transferring services from central government to municipalities did not increase employment during a monitoring period of over two years. In addition, the report stresses that new knowledge-based management tools are needed to support the development of “ecosystems” for promoting personal service and employment. The Government also informs about the launch in February 2023 of the knowledge-based management project of employment and integration services in KEHA Centre (Administrative and Development Centre for ELY Centres and TE Offices) to monitor the implementation and development of the decentralized employment services. The Committee notes the introduction on 2 May 2022 of the Nordic labour market service model aiming to provide jobseekers with individualized and proactive support to facilitate quicker employment. In this context, during the first three months after the registration, meetings between the counsellor and jobseeker are scheduled every two weeks and every jobseeker is expected to apply for at least four jobs every month. The Committee further notes the launch on 2 May 2022 of a new digital service platform Job Market Finland to promote the matching of jobs with jobseekers and to improve job search and employment services. Regarding the ”Välittäjä Oy” project, the Government informs about the introduction of a new state-owned special task company, Työkanava Oy, to employ unemployed persons with partial work ability who are in the most difficult position in the labour market. The Committee notes that the employment targets in the Sustainable Growth Programme for Finland were 400 persons in 2023 and 700 persons in 2025 but by the end of 2023, only 17 people had found employment in the company. In the context of the general savings, the Government removed the funding reserved for Työkanava Oy from the state budget and discontinued the company’s operations. With regard to labour market trends, the Committee notes the information provided by the Government on employment and unemployment trends, disaggregated by age and sex. In particular, the Committee notes that in June 2024 the employment rate was 72.3 per cent and in July 2024, 283,000 persons were registered in the public employment services. The Government aims to increase the employment rate to 80 per cent by 2031. The Committee further notes that the European Commission (2024), highlights that the country faces significant structural challenges, including a shrinking working-age population, persistent labour and skills shortages (particularly for the green transition), and significant implementation risks associated with the large-scale decentralization of employment services (the TE2024 reform).

The Committee notes the finding from the Government’s own-cited evaluation report (January 2024) that the local government pilots “did not increase employment” after two years. It also notes the Government’s report on the failure and subsequent discontinuation of the Työkanava Oy company, which employed only 17 people against a target of 400. Given these challenges, the Committee requests the Government to explain what concrete measures and resources are being put in place to ensure that full-scale decentralization to 118 municipalities (the TE2024 reform) will succeed where the pilots failed. Government is also requested to explain how the new model will be sufficiently resourced to counter implementation risks. Following the discontinuation of Työkanava Oy, the Committee asks the Government to report on the new specific measures it will take to ensure employment for persons with partial work ability in the most difficult labour market position.

Public employment services. The Government indicates the decision to transfer the responsibility for public employment services to the municipalities by the end of 2024 aiming to bring services closer to individual and business customers and to offer targeted and tailored services that meet the needs of customers and local labour markets. In addition, an incentive funding model will be created for municipalities to develop their employment promotion activities to increase employment by 7,000–10,000 people. The Government also stresses its commitment to intensify the cooperation between the public and private employment services. In this context, in autumn 2023, the Ministry of Economic Affairs and Employment appointed a working group for the development of employment services, including a broad range of stakeholders. The Working group aims to provide a concise description of the roles of private employment agencies in employment services and the information they need on jobseekers. In addition, the Government informs that its proposal for legislative amendments, including intensification of cooperation between public and private employment services is scheduled to be submitted to the Parliament in autumn 2025. The Committee however notes that the Government does not fully respond to its previous comments. The Committee reiterates its request for data on the impact of public employment services in placing jobseekers in lasting employment. It further requests the Government to provide specific details on the new “incentive funding model” for municipalities. The Committee asks the Government to explain how this model will guarantee a consistent and high level of service across all 118 new employment areas and what safeguards are in place to prevent regional inequalities in service provision. Please also explain how this model ensures that adequate resources are dedicated to the most vulnerable jobseekers (such as the long-term unemployed or those with partial work ability) and not just those who are easiest to place in employment.

Education and training programmes. The Committee notes the information that in 2022, labour market training was attended by 19,700 students, which is 1,400 (7 per cent) less than in 2021 and of those having completed labour market training in 2022, 48 per cent were employed for two months after the end of the training which is 1 per cent less than in 2021. The Committee however notes that the Government does not fully respond to its previous comments. The Committee notes the Government’s own data showing that in 2022, participation in labour market training decreased by 7 per cent and employment outcomes also worsened. In a context of persistent skills shortages, the Committee requests the Government to provide an analysis of the reasons for this negative trend. It reiterates its request for information on the impact of RecruitmentTraining, TäsmäKoulutus, and ChangeTraining, and asks the Government to explain what urgent measures are being taken to reverse this decline and better address the skills mismatching in the Finnish labour market. The Committee also reiterates its request to the Government to provide information on the impact of the RecruitmentTraining, TäsmäKoulutus Training (targeted training) and ChangeTraining (MuutosKoulutus), in terms of the access of beneficiaries to lasting jobs. The Committee also requests the Government to provide information on the coordination of vocational education and training policies with employment policy and on any measures taken or envisaged to address the shortage of skilled labour and the regional or professional skills mismatching in the Finnish labour market.

Older persons. The Government informs about a stable increase in the employment rate of the older workers but the Committee notes that among the 283,000 unemployed jobseekers in July 2024, 75,000 are over 55 years old. The Committee also notes various measures taken by the Government to promote the employment of older workers which include a possibility for a fixed-term employment contract with the municipality for persons over 57 years who have received an earnings-related unemployment allowance for almost the maximum period. The Committee notes that older workers (over 55) represent a significant and disproportionate share (over 26 per cent) of all unemployed jobseekers. The Committee requests the Government to provide a more detailed analysis of the impact of the measures taken for this group. It further requests the Government to explain what specific safeguards are being built into the new decentralized TE2024 model to ensure this vulnerable group receives adequate, tailored support and is not disproportionately affected by the new job search requirements or the “incentive funding model”.

Young workers. The Government informs that Nuoret töihin! And Nuoret kohti työtä! projects have been concluded and provides information about the outcome of the second project. According to this information 25 per cent of the participants were employed, 15 per cent started vocational education, 11 per cent started a service that promotes employment and 45 per cent were targeted to health and social services. The Committee, however, notes that the Government does not provide information, disaggregated by age, sex and economic sector, on trends in employment, unemployment and underemployment for young persons. The Committee notes the weak employment outcomes (25 per cent) of the “Nuoret kohti työtä!” Project, where the largest group (45 per cent) was simply referred to other services. The Committee requests the Government to provide an analysis of this result. It also requests the Government to provide specific, disaggregated data on the impact of the Youth Guarantee and the One Stop Guidance Centres in securing lasting employment, not just placement in other services or education. It reiterates its request for disaggregated data on youth employment trends.