General Assembly 7th World Congress Managing Board Meetings Demographic Trends and PES challenges in Finland Rolf Myhrman Deputy Director General Ministry of Social Affairs and Health Finland Qu - PowerPoint PPT Presentation

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General Assembly 7th World Congress Managing Board Meetings Demographic Trends and PES challenges in Finland Rolf Myhrman Deputy Director General Ministry of Social Affairs and Health Finland Qu

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Title: General Assembly 7th World Congress Managing Board Meetings Demographic Trends and PES challenges in Finland Rolf Myhrman Deputy Director General Ministry of Social Affairs and Health Finland Qu


1
General Assembly 7th World Congress Managing
Board MeetingsDemographic Trends and PES
challenges in FinlandRolf Myhrman Deputy
Director GeneralMinistry of Social Affairs and
HealthFinlandQuébec City, CanadaMay 15-18,
2006
2
The construction of my presentation is
The goal Binding together all the four prongs
clarify our understanding of the cross-sectoral
management of labour market policies, and we are
able to assess the functioning of PES in the
broader context.
  • The employment challenge
  • The concept of work ability
  • the reconciling of work life and family life
  • The assessment of anticipative effectiveness of
    PES

3
Demographic challenge in Finland
The fact that the post-war baby boom generation
is approaching pension age means that we must
adjust to a decrease in working-age population.
At the same time, the size of those age cohorts
that have traditionally had a low employment rate
will increase. In 2010, the number of people aged
6064 will be fifty percent higher than in 2004.

4
Working-age population and employed persons in
1990 - 2002and estimated development in 2002 -
2012 based different assumptions
5
AGEING AND WORK
AGEING AND WORK
MILESTONES OF FINNISH EXPERIENCES
MILESTONES OF FINNISH EXPERIENCES
1. 1981
Longitudinal Studies of Ageing Workers by FIOH
2. 1990-1996
FinnAge
-Respect for the Ageing Programme
by FIOH
3. 1996 Cabinet Committee Ageing
people at work
4. 1998-2002 National Programme for ageing
workers
New Programme proposals of different
5. 2003
ministries
  • Promoting the attractiveness of working life (
    Pull-programme) Ministry of Social
  • Affairs and Health
  • Raising adults level of education and training
    (Lift-programme) Ministry of
  • Education
  • On the job, together (FWDP-programme) Ministry
    of Labour
  • Governments employment programme Ministry of
    Labour (project leader Harri Skog)

6
Work ability
  • Work ability develops on workplace level.
  • Work ability refers to the sum of factors related
    to both the individual and
  • work that are important in terms of the
    individuals ability to cope at
  • work.
  • Work ability is seen as a process where an
    individuals resources
  • and work interact.
  • Productivity is largely determined by work
    ability.

7
Schema showing consequences of good work
abilityThe Finnish Framework
Source Juhani Ilmarinen 1999
8
Health and human capital the modification of
work ability
FIRM
EMPLOYEE
CAPITAL
LABOR
LEISURE TIME
Wages and other compensation
WORKTIME
Prosperity
Benefit Design Health Plan Options Health
Promotion
Occupational environment
Health
Skills Marketability
On-the-job training
Well-being
Productivity
Berger ML, Murray JF, Xu J, Pauly M. Alternative
Valuations of Workloss and Productivity. J Occup
Environ Med. 2001
9
Households act as firms counterparts,
with responsibility for labour supply.
10
Labour Supply
First prong
FAMILY
EMPLOYEE
  • Social
  • protection
  • policy
  • Pensions
  • Unemployment
  • benefits

LEISURE TIME
EVERYDAY TIME
Income/ Employment
WORKING TIME
PES job-broking
Health promoting activities
Health
Family members mutual responsibility for
everyday matters
Learning/ training
Professional competence
Gender equality policy
Social networks
Well-being at work
Well-being at home
Productivity
Citizenship
Rolf Myhrman
11
Productivity and the competitiveness of a nation
are not only determined within firms welfare
policy - social and health care policy as well as
education policy - has a significant impact on
the success of firms. Social policy and gender
equality policy have a significant impact on
these factors that are crucial to productivity
and employment.
Labour Market
12
Reconciling Work Life and Family Life Fourth
prong
FAMILY
EMPLOYEE/PART-TIME PENSIONER
FIRM/SOCIETY
  • Social
  • protection
  • policy
  • Pensions
  • Unemployment
  • benefits

CAPITAL
LEISURE TIME
EVERYDAY TIME
Prosperity
Equality policy
WORKTIME
PES job-broking
Wages, retirement allowance and other
compensation
Health promoting activities
Mutual responsibilities of family members
Core tasks -- Care
Health
Benefit Design Health Plan Options Health
Promotion
Training/ education
Skills Marketability
Occupational environment
Equality policy
Social contacts
On-the-job training
Well-being at work - third prong
Well-being at home
Enterprise culture/ management
Productivity
Citizenship
Rolf Myhrman
13
Incentives
  • Incentives are mostly seen as a purely economical
    issue, such as the
  • relationship between benefits, taxation and
    earnings.
  • Incentive is a more comprehensive concept than is
    generally thought.
  • The third prong
  • Well-being at work and the qualitative aspects of
    work are key factors that
  • either attach people to work or detach them from
    it.

14
Health and human capital
The Fourth prong
FAMILY
UNEMPLOYED
SOCIETY
  • Social
  • protection
  • policy
  • Pensions
  • Unemployment
  • benefits

CAPITAL
LEISURE TIME
EVERYDAY TIME
WORKTIME
Prosperity
Equality policy
PES job-broking
Unemployment benefits and other compensation
Health promoting activities
Mutual responsibilities of family members
Core tasks -- Care
Health
Public Health Services
Training/ education
Skills Marketability
Equality policy
Public employment Services - The second prong
Social contacts
Well-being at job searching
Well-being at home
Attitudes
Employed
Citizenship
Rolf Myhrman
15
An activating system includes both incentive and
restricting features. Rather than providing ways
to exit the labour market, social protection
should act as a trampoline to employment (Making
work pay). If unemployment is the result of
incidence between labour demand and supply,
employees must also be encouraged to improve
their work ability and competence, and employers
must be encouraged to support this type of
activity. From the firms point of view, the
productivity of an employee must be at least
equal to the expenditure targeted at him in the
firms balance sheet.
Moral hazard
16
The number of Employed and employment rate by age
group
Source Statistics Finland
17
This positive development is however overshadowed
by a persistent trend in structural unemployment.
There has been a reduction in unemployment, but
a persistent core of unemployment still remains.

18
Structural unemployment in January-December 1997,
2002, 2003, 2004 and 2005
19
The most problematic sub-group of structural
unemployment consists of the uninterruptedly
long-term unemployed. In practice, only a small
minority of them are able to find employment in
the open job market without special measures.
The number of long-term unemployed seems to
have stabilised at just above 70,000.
Structural unemployment and extensive
unemployment also seem to have stabilised at high
level, close to 290,000 and 375,000 persons,
respectively.
Matching of job seekers and jobs
20
Basic idea of a joint service centre LAFOS
Source Heikki Räisänen
21
The Second ProngThe basic idea of founding
these kind of service centres lies in common
interests in helping joint customers of different
authorities. One target of the experiment was
to create stable cooperative model for the
employment office, the municipalitys social work
branch and the social insurance institution.
22
Health dominating growth factor An employee
uses and adapts his/her resources at work.
These resources consist of competence, health
and the ability to get along with other people.
These are affected by the work community, the
work environment as well as the physical and
mental demands of work. The impact of these
factors is strengthened with age. Among ageing
employees aged 55, health and functional ability
explain success at work even more than
competence.
Source J.Ilmarinen, K.Tuomi, J.Seitsamo,
International Congress series 1280 (2005) New
Dimensions or work ability
23
Finally
  • In the future, exit from employment will be
    postponed by changes in unemployment and pension
    security (the Pension Reform 2005).
  • Reducing the number of routes to retirement and
    strengthening incentives that encourage staying
    on at work have contributed to the positive
    development on the labour market.
  • In this context the well-functioning labour
    market needs well-functioning PES including the
    clear task distribution between the ministries
    and between levels.

24
  • In the Governments Employment Policy Programme
    for 2003-2007, the functioning, quality and
    efficiency of employment services should play a
    central role
  • The action environment of labour force service
    centre is enhancing with the Institute of
    Occupational Health. An occupational physician
    will examine the health status of unemployed
    persons.
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