Documents/MEE/3: Age Structure

3: Age Structure

Raise the labour market exit age and improve productivity throughout the country in all industries and the public sector

Other Information:

Responses to changes in the age structure -- The Government’s goal is to raise the labour market exit age in due course, by at least three years. In addition to raising employment levels, we must markedly improve productivity throughout the country in all industries and the public sector. (Statement of the Finnish Government, 24 February 2009). To be able to raise employment levels, powerful measures affecting the whole of working life are re-quired. Sufficient incentives are needed for labour market participation and, on the other hand, to en-courage employers to offer employment. Careers can be lengthened through the high quality of working life, including good leadership and flexible working hour arrangements, which will also improve coping at work throughout one’s career. Work and family life must be reconciled more effectively than before. Through improving the quality of working life, it should also be possible to boost the adoption of innovations and the renewal of production methods. Labour policies must support the employment of job seekers and their ability to move flexibly from one job to another. Since competence ensures employment during high-risk periods of working life, resources must be directed at keeping employee competencies up-to-date. Employment or an active alternative must, naturally, be the primary options and an attractive choice compared to unemployment. Raising productivity is imperative throughout society, including both the private and public sectors. In the public sector, productivity development has clearly been weaker than in the private sector. The focus of productivity development must be on public services. Expanding entrepreneurship in the health and social service sectors represents one way of promoting competition and, consequently, pro-ductivity. At the same time, citizens' options for selecting service providers and influencing the contents of the services they receive must be improved. Service innovations must be promoted through, for example, regulation and corporate financing. Integrating immigrants into the labour market will be supported in co-operation with the Ministry of the Interior’s administrative sector. Equality and equal opportunities in working life must be extensively promoted through support, for example, for the acceptance of diversity. In order to secure the preconditions for economic growth, all labour force reserves must be available for use. Unemployment periods resulting from the economic crisis must remain short and the education of the labour force must be effective and worklife-oriented. Definition of target policies: Enhance work force competencies, and expedite employment that correspond to employers’ needs. As the age of the population increases, there will be an increased need for public services, such as health and care services. At such times, achieving higher productivity is of the utmost importance. Services must be produced efficiently, utilising, for example, new operational models and the opportunities provided by the latest technological developments. The quality of working life is an important factor in productivity. Definition of target policies: Improve productivity, particularly in public services, and improve the quality of working life in all industries.

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