Back to Work: Finland

Improving the Re-employment Prospects of Displaced Workers

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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.



Mainstream income support and employment services and their effectiveness for displaced workers in Finland

This chapter looks at the structure of mainstream income support and employment services in Finland and their impact for displaced workers. Finland does not provide any special schemes or measures for displaced workers and relatively little is known about the use and effectiveness of mainstream benefits and programmes for this group. General evidence suggests that older and low-skilled unemployed benefit the least from employment support and are at the highest risk of becoming long-term unemployed. The structure of passive and active support provided in Finland contributes to this finding. The chapter makes suggestions on how the benefit system and the operations of the public employment service could be changed to help more people in a better way.




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