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Aging workforce – Opportunities and challenges in Finland

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Aging workforce – Opportunities and challenges in Finland

  1. 1. MINISTRY OF SOCIAL AFFAIRS AND HEALTHAging workforce – Opportunities andchallenges in Finland Prof. Heikki Savolainen
  2. 2. MINISTRY OF SOCIAL AFFAIRS AND HEALTHOrigins of the Finnish Programmes Economic downturn in the early 90´s Extensive use of early retirement as a tool to cut cost and to avoid redundancy-related unemployment Diminishing age cohorts born late 60´s early 70´s Large retirement rates of the postwar age classes after 2010
  3. 3. MINISTRY OF SOCIAL AFFAIRS AND HEALTHAging worker programme Promulgation following the work of a dedicated interministerial committee for 1998-2001 Main approaches: - partial retirement reforms - educating the public on the prospects - development projects and good pract- ices to maintain 55+ year-old in work Research projects on work ability and economic impact
  4. 4. MINISTRY OF SOCIAL AFFAIRS AND HEALTHConduct Ad hoc team from ministries of social affairs and health, of labour and of education High level steering committee from the same and with social partners Coordinated country-wide development projects Information by regional meetings, media and consultant network
  5. 5. MINISTRY OF SOCIAL AFFAIRS AND HEALTHResults Average retirement age increased Better appreciation of the skills and expertise of the 55+ year-old Work ability concept accepted as a good general tool Very good coordination of the operative efforts of the three participating ministries
  6. 6. MINISTRY OF SOCIAL AFFAIRS AND HEALTH Convincing figures Employment (%)WomenAge 1997 1998 1999 2000 2001 2002 2003 2004 2005 200650-54 75,5 77,7 78,7 79,2 80,4 80,0 80,8 81,4 81,0 82,355-59 49,1 50,7 55,6 59,8 63,7 65,7 66,4 66,7 66,7 69,060-64 16,3 16,7 20,0 20,3 22,2 23,4 23,7 27,2 30,7 35,1MenAge 1997 1998 1999 2000 2001 2002 2003 2004 2005 200650-54 73,5 76,6 78,2 79,5 80,0 79,1 78,1 77,9 79,8 79,655-59 50,5 51,6 54,7 58,7 62,0 64,6 64,9 64,6 63,0 65,760-64 22,8 22,8 23,2 26,7 28,3 28,7 31,2 31,3 35,4 39,5
  7. 7. MINISTRY OF SOCIAL AFFAIRS AND HEALTHWell being at work programme Conceived as a continuation of the earlier programme for 2001-2003 A stake-holder approach reached through workplace level development projects Research programme on time budgeting by 45 + year-old, annual personnel reporting and on the health needs of a cohort born 1966
  8. 8. MINISTRY OF SOCIAL AFFAIRS AND HEALTHAdded value Knowledge capital of the previous programme maintained Better acceptance of diversity of the human resource at the workplace Employees more aware of the motivational and supporting aspects of their occupation
  9. 9. MINISTRY OF SOCIAL AFFAIRS AND HEALTHWork attraction programme for 2003-2007 Shortening work careers realized as an increasing danger Retirement legislation in need of a reform Occupational absences, accidents and disease still a menace Increased rates of incapacity pensions due to musculoskeletal and depressive disorders
  10. 10. MINISTRY OF SOCIAL AFFAIRS AND HEALTHMassive concerted efforts with four pillars Theme 1: Safe and health-supporting work conditions Theme 2: Efficient occupational health and rehabilitation services Theme 3: Equal opportunities for all at work Theme 4: Flexible retirement rules and legislation
  11. 11. MINISTRY OF SOCIAL AFFAIRS AND HEALTHTask force of three ministries and socialpartners Large consensus acquired through participation Efficient work shows results: - retirement reform accomplished - average retirement ages on the increase - new methods in rehabilitation and occupational health care tested - legislation on equal treatment of all at work
  12. 12. MINISTRY OF SOCIAL AFFAIRS AND HEALTHPerseverance pays off Three consecutive governments have consistently focussed on the issue of population aging, employment and health The three programmes represent evolutionary steps conserving the acquis of the earlier effort No immediate miracles possible while attitude changes are indispensable and form base of the development
  13. 13. MINISTRY OFSOCIAL AFFAIRS AND HEALTHExpected retirement age 2000 - 2006 Age 6059,5 5958,5 All 58 Retirement reform57,5 50 to 64-year-old 57 2000 2001 2002 2003 2004 2005 2006
  14. 14. MINISTRY OF SOCIAL AFFAIRS AND HEALTHInternational recognition The Finnish programme was given the Bertelsmann prize in 2006 Some innovations have been adopted by European partners (e.g. the Work Ability Index, WAI) OECD working groups have used the Finnish expertise and experience
  15. 15. MINISTRY OF SOCIAL AFFAIRS AND HEALTH Pension-age expectancy for 50 year-olds62,562,061,5 Men61,0 Women Men - target60,5 Women - target60,059,5 1996 1998 2000 2004 2006 2008 2010 2002Source: Finnish Centre for Pensions
  16. 16. MINISTRY OF SOCIAL AFFAIRS AND HEALTH Reimbursed sickness daily allowances by disease Thousand sickness daily allowances3500 Diseases of musculo- sceletal system and3000 connective tissue Mental and behavioural disorders2500 Injuries, poisoning and certain other external2000 causes Diseases of circulatory system1500 Diseases of nervous system1000 Tumours500 Other reasons 0 1995 - men 2006 - men 1995 - women 2006 - women Source: Social Insurance Institution of Finland
  17. 17. MINISTRY OF SOCIAL AFFAIRS AND HEALTH A broad approach to well-being at work Somatic, mental and social well-being at work Safety and health at work Occupational hygiene The functioning of work organisations and work communities Skills and competence; command of work Balancing work and life The attractiveness of working life Good quality work and productivity
  18. 18. MINISTRY OF SOCIAL AFFAIRS AND HEALTH Leading principles of the Forum The Forum provides a sound and honest platform for a broad participation. Interaction between workplaces and experts. Any organisation who works for well-being at work may participate in the Forum according to their needs and aspirations. The Forum utilizes the knowledge and good practises developed in the previous work life programmes. Interaction with international partners, and dissemination of this information to the Forum members and public. The Forum is one module in the Government policy programme on employment, entrepreneurship and work life.
  19. 19. MINISTRY OF SOCIAL AFFAIRS AND HEALTH Challenges and opportunities for improvements Improving productivity and the quality of work simultaneously Integrating well-being at work in other areas of society by effective networking Dissemination of good practices at the workplace level
  20. 20. MINISTRY OFSOCIAL AFFAIRS AND HEALTHThe main themes of the Forum Dissemination of good practices Balancing (managing) work load and stress at work Safety at work Occupational health care practices A coordinator and a working group for each theme Several operative activities within each theme New themes can be started and existing ones modified or accomplished according to the needs of the society and stake holders.
  21. 21. MINISTRY OF SOCIAL AFFAIRS AND HEALTHNational economy benefits Increase in retirement age from 65 to 68 augments spending power by 10 % Period of retirement will shorten 9.2 months on the average Benefit spending increases smaller(NZZ, Feb, 18, 2009)

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