Back to Work: Finland

Improving the Re-employment Prospects of Displaced Workers

image of Back to Work: Finland

Job displacement (involuntary job loss due to firm closure or downsizing) affects many workers over their lifetime. Displaced workers may face long periods of unemployment and, even when they find new jobs, tend to be paid less  and have fewer benefits than in their prior jobs. Helping them get back into good jobs quickly should be a key goal of labour market policy. This report is part of a series of nine reports looking at how this challenge is being tackled in a number of OECD countries. It shows that Finland has a higher rate of job displacement than most OECD countries but that most of these workers find a new job again relatively quickly. However, those who do not face a considerable risk of long-term unemployment; with older displaced workers and those with a low level of education facing the highest risk. While labour market institutions in Finland serve most displaced jobseekers well, there is room to improve policies for those at risk of long-term unemployment or inactivity who would benefit from earlier identification of their problems and early, effective and well-targeted counselling and intervention.



Job displacement in Finland and its consequences

This chapter examines the prevalence and consequences of job displacement in Finland. Finland’s flexible labour market is reflected in a higher risk of job loss for economic reasons than in most other OECD countries for which comparable data is available but also high and rapid re-employment. Scarce information on job quality show no large fall on average, and professional downgrading appears relatively limited. However, some groups face more difficulties in getting back to employment, notably older and low-educated displaced workers. Older blue-collar workers in particular face increased difficulty since the crisis, with higher probabilities of being unemployed and for longer periods, a trend which may even deepen given the continuing poor labour market performance in Finland. Workers in regions with traditional specialisation in sectors such as the forestry and the maritime industry which have undergone significant restructuring also face more difficulties.




This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error