Labour Market Situation and PES Policy Guidelines

Kai Koivumäkikai.koivumaki@tem.fi

Ministry of Employment and teh Economy

Global crisis hits Finland• Global economic growth will decline in Finland’s export markets by

4% in 2009 - Exports account for 45% of Finland’s GDP• Export industry has been hit by the financial crisis since autumn

2008, and the change has been exceptionally rapid and abruptIndustrial production will decline by 15% in 2009-2010

• Construction will decline by 20% in 2009-2010• Private services will decline by 3% in 2009-2010• State will have to take out new loans of at least 50 billion euros in

the coming yearsLocal government economies in crisis already in 2009

• Outlook weakened at same time by rapid change in population structure

• Employment will fall into steep decline during 2009Unemployment rate will rise to at least 10% in 2010

Some statistics July 2009

• Unemployment rate 7,8%• 290 100 unemployed – 69 600 more than July 2008• 29 100 laid-off – 21 400 more than July 2008• 24 700 new open vacances – 10 000 less than year

before• Long term unemployed 41 1000 – 3000 less than July

2008• Foreign citizens 20 500 – 3300 more (of whome 4100

EU)

Young jobseekers as clients in the labour exchange

Due to a healthy economic development the unemployment rate for 15-15 years job seekers has decreased until september 2008.

In the autumn 2008 25 795 unemployed young persons under 25 years of age: 15 595were young men and 10 200 young women.

In july 2009 there were 43 500.

The unemployment of young people is much shorter than of adults: March 2008 the duration of

unemployment among 15‑19 –year-olds were on average 7 weeks and among 20-24 –year-olds 12 weeks.

At the same time the duration of unemployment of other age groups were on average 45 weeks.

But young people have usually several breaks in their unemployment because of the active measures young persons are participating (for example labour market training).

Strategy goals for services offered to individual clients in PES

Fusion of the Ministry of Labour and the Ministry of Trade and Industry 2008> More synergy between labour force and employers and enterprises!

The strategy of the Ministry of Employment and the Economy has it´s roots in :

- EU –guidelines: ex. The Lisbon Strategy - The Government Programme  (one goal is to increase the employment rate) - Goals in the Government Policy Programmes * A policy programme for employment, entrepreneurship and working life

  * A policy programme for the well-being of children, youth and families   * A policy programme for health promotion

- Goals in cooperation between different ministries, especially between the Ministry of Education and the Ministry of Employment and the Economy, in Immigrant integration co-operation with the Ministry of Interior

Guidelines of Employment and Entrepreneurship Department

1. Growth for enterprises and competences and skills for the labour craft

2. Active entrepreneurship and more new enterprises

3. Rapid employment

4. Support to people outside or on the edge of labour market

Focus of PES Policy 2009-2010

• Young unemployed (50 new vacancies in PES)• Recently graduated or got vocational qualifications• Employment and change security (120 new vacancies)• Guidance and counselling• Labour market training and adult education• Better benefits for those who actively want to improve

their skills• Immigrant integration

• State ”productivity programme” is a challenge!

Structural reform of Public Employment Service (PES)

Employment Service Centers (39):

-Target group: long term unemployed

- staff with PES-background and social workers co-operating

TE-offices (Employment Offices) 75: * Employer Services

* Job Seeking Services: - Personal employment services - Support for employability + labour market measuresJOB

Centers(47): - mainly self-service

- PES staff assistance

Vocational Development Services:

- Labour Market Training, Vocational and Career Guidance, Educational and Vocational Information Services, Vocational Rehabilitation Service

* Immigrant Services: Integration plan, Integration training, validation

E-services

Phone services

E-services

Phone services

Self-services, e-services <- - - - - - ->Personal service, special services

EconomicalDevelopmentServices ??

Self-access services Personal services at the local employment

and economical development offices (3-6)

1) Self-access services on the Internet

3) Personal employment counselling- interviews- action plans- provision of jobs, training, active programmes- EURES about 2 500 employment counsellors- specialised counsellors

(young people, immigrants)

5) Vocational rehabilitation for disabled people about 300 special employment counsellors (and

psychologists)

6) Career guidance, 269 psychologists 7) Multi-professional,

individual counselling

- about 20 psychologists and 300 employment counsellors co-operating with municipal social and heath care specialists (300)

2) Supported self-access service at

the job search centres (local

employment offices)

- individual advice on job seeking and training, writing of CVs- Job Clubs, about 300 advisors and employment counsellors

Deepening service levels according to the needs of the PES customers

4) Educational and Vocational Information Services-educational advisors100 full time and about 160 part time advisors

ASIAKKAAT

PALVELUT

SYNTYY UUTTAYRITYSTOIMINTAA

YRITYSTEN KEHITTÄMIS-

EDELLYTYKSETPARANEVAT

TYÖNANTAJATSAAVAT

OSAAVAATYÖVOIMAA

TYÖTÄ HAKEVATSAAVAT NOPEASTITYÖTÄ AVOIMILTA

TYÖMARKKINOILTA

TULOKSETJÄRJESTÄMISTAVAT

JA -KANAVAT

Seudullisetyrityspalvelut

Verkkopalvelut

YRITYS.SUOMI.FIMOL.FI

Kumppanuudet

Henkilökohtainenasiakaspalvelu

Oma tuotanto

CC- ja muutpuhelinpalvelut

Tilaaja-tuottaja-malli

TOIMINTA-AJATUS

UUSI TE -TOIMISTO

Yritykset

Henkilöasiakkaat

Suoraantyömarkkinoille

suuntaavat

Osaamisenkehittämisen kautta

työmarkkinoillesuuntaavat

Työelämäänkuntoutuvat

Yrityksen perustajatja aloittavat yritykset

Paikallisesti toimivatja kotimarkkinoille

keskittyvät yritykset

Kansainvälistymälläkasvua hakevat

yritykset

Suuryritykset

Yhteisöt

TYÖMARKKINOIDENASIANTUNTIJA

TYÖ- JA ELINKEINO-POLITIIKAN VAIKUTTAJA

YRITYSTEN, YHTEISÖJEN,

TYÖ- JA ELINKEINO-ELÄMÄN TOIMI-

JOIDEN JA KOULUTUKSENJÄRJESTÄJIEN

YHTEISTYÖKUMPPANI

ASIAKKAIDENPALVELIJA

TYÖELÄMÄNJA YRITYSTEN

MUUTOSTILANTEISSAJA MUUTOKSENHALLINNASSA

Ammatillinenkuntoutus

Työttömyysturva

Ammatinvalintaurasuunnittelu

Maahanmuuttajienkotoutumispalvelut

HRV -palvelut

Ensimmäisen työntekijänpalkkatuki

Muutosturva

Yritysneuvonta;yrittäjyyskoulutus

Starttiraha ja TE-keskuksestamahdollisesti siirrettävät

yrityspalvelut

Yhteishankintakoulutus

TYÖNVÄLITYS

Työvoimakoulutus

Liikkuvuusavustus

Työharjoittelu-ja työelämävalmennus

Palkkatuki

Koulutus- ja ammattitieto-palvelut

Young jobseekers as clients in the labour exchange

A person under 17 years has no right to get an unemployment subsidy.

If a 17 year old person has not any vocational trainig degree he/shecan be payed only for the time in active measures.

18-24 years old young persons have right to unemployment subsidyif he/she are actively looking for work and if he/she has applied to

suitable training.

Applying to general upper secondary and vocational upper secondary education takes place through joint application and applying  to polytechnic

Universities' joint application system took place for the first time in February 2009.

Social guarantee for young peopleRoots in cross-sectoral employment programme. Early intervention and an enhanced service process are central.

To estimate of the needs for services and a job-seeking plan at an early stagein the job-seeking process - must be drawn up for each and every unemployed

jobseeker under the age of 25.

Young people are offered • preparative or vocational labour market training, • job-seeking training, • subsidised employment or a traineeship without an employment relationship

or, • if required, vocational rehabilitation.

Goals agreed together, services and active measures help young persons to get in to education or in working life.

A working group: ”Young men to working life”

A working groupfrom February to the end of May 2009.

Services and measures in EE-offices speciallyfor young men - what do they need?

A working group made suggestions/proposalsfor solving the big problem with increasingunemployment among young men. Report in Finnish:

http://www.tem.fi/files/23108/Raportti_27052009_FINAL_2_.pdf

Vocational Guidance

and Career Planning

Vocational Rehabilitatio

n

Educational and Vocational Information

Service

Labour Market

Training

What could be my profession ?

Do I have to leavemy work for health reasons ?

How could I improve my skills ?

I am 40 – can I stillstart studying ?

Where can I study ?

I would like tofind informationabout different occupations ?

VOCATIONAL DEVELOPMENT SERVICES

Development of the workforce -> Vocational development services in employment offices

The purpose of vocational development services isto improve the competence and motivation of clients as well as to facilitate access to the labour market by providing • Vocational Guidance and Career Planning Service• Educational and Vocational Information Service• Labour Market Training and • Vocational Rehabilitation Services

Paths to employment will be created and the availability of skilled labourensured by combining services, training and activation measures. The aim is to give young people skills and bring them into working life more quickly than at present.

Also: EMPLOYMENT SERVICES ACT 1295/2002

1st January 2009 The Employment offices changed names to Employment and Economic Development Offices (TE-Offices or EE-Offices).

VOCATIONAL GUIDANCE AND CAREER PLANNING = lifelong guidance (PES)

Available for all young people and adults free of charge

VOCATIONAL GUIDANCE PSYCHOLOGISTS help clients with career choices, professional development and finding employment

> personal/face-to-face and small group guidance to clients

> total of 260 vocational guidance psychologists in Finland

> 20 psychologists at Employment Service Centres

VOCATIONAL GUIDANCE -> clients make realistic action plans based on their skills, interests and goals. In 2008 personal counselling clients 29 900 (average length 2,4 one hours sessions), drop-in-services 5 900 and e-services 53 800 clients.

About 35 % of clients are under 25 years, about 45 % are unemployed, 21 % employed and 19 % had special needs.Clients career plans after guidance service: 43 % educational plan, 23 % find employment and 34 % pension, rehabilitation or other plans.

• In 2008, clients made contact with educational advisers approximately 183 200 times – either by office visit, telephoning or emailing

• Information and advisory service to all clients about education, training, occupations and working life as well as about financing studies and studying and training opportunities abroad

• Group services The clients can also participate in public information events arranged by the educational advisers 2008: approximately 2500 groups with 39 030 participants

• Local networking the educational advisers cooperate also with local educational and training institutions

• Client feed back: those who were jobseekers 7,8, not job-seekers 8,5, educational telephone line 8,7 in the year 2008 (scale from 4 to 10)

EDUCATIONAL AND VOCATIONAL INFORMATION SERVICE PES

Koulutuslinja/Education Line: 010 19 4901 or 010 60 76888 Mon-Fri 9.00 – 17.00 h

nationwide telephone service

Action Programme on Information Services, Advice and Guidance connected to Adult Education and Training (2005-2012); Ministry of Employment and the Economy & Ministry of Education

Provide easy-to-use information services, suitable for adults

Improving accessibility of advisory and guidance services: web-advice and guidance services

Develop new tools to find out about skills of the working age population

Reinforce the strategic position of guidance and research and provide more training for those giving guidance (at adult learning institutions, work places and employment offices)

Enchance co-operation and networking (national, regional and locallevels)

ESF, European Social Fund 2007-2013European Social Fund –projects/ Priority 3:  Development of skills, innovation and services systemsthat promote the functioning of the labour market:

Developing information services, advice and guidance in connectionwith adult education and training

26,1 milj. €: Ministry of Employment and the Economy 14,1 milj. € Ministry of Education, 11,9 milj. €, + Immigrant Integration 34 milj. €, Ministry of Interior Affairs

The practical implementation involves the regional organisations of the ministries (the Employment and Economic Development Centres and the Employment Offices), the regional councils, the labour market organisations as well as other organisations and associations.

”multichannelled counselling”: web-based, call center, e-mail etc.

Cross-sectoral and- administrative training for adult counsellors

Validation, language training and support for immigrants

Thank You!

www.mol.fiwww.tem.fi