1. Labour Market Situation and PES Policy Guidelines Kai Koivumäki kai.koivumaki@tem.fi Ministry of Employment and teh Economy

2. 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

3. 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)

4. 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: 15 595 were 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).

5. 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

6. 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

7. 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!

8. 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 measures JOB 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 Economical Development Services ??

9. 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 advisors 100 full time and about 160 part time advisors

11. 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/she can be payed only for the time in active measures. 18-24 years old young persons have right to unemployment subsidy if 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.

12. Social guarantee for young people Roots 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 stage in 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.

13. A working group: ”Young men to working life” A working group from February to the end of May 2009. Services and measures in EE-offices specially for young men - what do they need? A working group made suggestions/proposals for solving the big problem with increasing unemployment among young men. Report in Finnish: http://www.tem.fi/files/23108/Raportti_27052009_FINAL_2_.pdf http://www.tem.fi/files/23108/Raportti_27052009_FINAL_2_.pdf

14. Vocational Guidance and Career Planning Vocational Rehabilitation Educational and Vocational Information Service Labour Market Training What could be my profession ? Do I have to leave my work for health reasons ? How could I improve my skills ? I am 40 – can I still start studying ? Where can I study ? I would like to find information about different occupations ? VOCATIONAL DEVELOPMENT SERVICES

15. Development of the workforce -> Vocational development services in employment offices The purpose of vocational development services is to 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 labour ensured 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).

16. 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.

17. 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

18. 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 local levels)

19. ESF, European Social Fund 2007-2013 European Social Fund –projects/ Priority 3: Development of skills, innovation and services systems that promote the functioning of the labour market: Developing information services, advice and guidance in connection with 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

20. Thank You! www.mol.fi www.tem.fi