24/11/2016 - Access to more intensive employment services before and after dismissal could help disadvantaged laid-off workers get back into employment, according to a new OECD report.
Back to Work: Finland says that 5.4% of Finnish workers with at least one year of tenure are laid off as firms close or downsize in response to fluctuations in demand and production, one of the highest rates in the OECD. The share of workers who find a new job within one year after displacement is also among the highest among OECD countries, standing at 87%.
The good average re-employment outcomes rely mostly on the flexible Finnish labour market that allows fast labour reallocation. But older and low-educated workers have more difficulty getting a new job. Since the global financial crisis, blue-collar workers are also less likely to transition to new employment. Regions are also affected differently and internal migration plays a very limited role in reducing these regional disparities.
The Finnish unemployment benefit system protects displaced workers effectively, but there is a need to re-balance labour market spending towards more active programmes to help the most disadvantaged workers transition to a new job:
To help address these challenges, the OECD recommends that Finland:
For further information or comments, journalists should contact Ann Vourc’h, economist at the OECD Employment Policy Division and author of the report (tel. +33 1 45 24 17 27) or Christopher Prinz, manager of the OECD Back-to-Work project (tel. +33 1 45 24 94 83).
For a copy of the report, please contact OECD’s Media Division (+33 1 45 24 97 00).
Working with over 100 countries, the OECD is a global policy forum that promotes policies to improve the economic and social well-being of people around the world.