Finland reduced by 30% unemployment among people with limited work ability

The Finnish labour market is moving towards better integration of people with disabilities or chronic diseases.

According to the latest numbers published by the Finnish Government, since 2015 more and more people with limited work ability are finding jobs. And in the same period the number of unemployed persons with limited work ability has also decreased by 30.2%.

The figures on paper are still scary and justify decision making: as many as 1.9 million Finns of working age have some type of disability or chronic disease. One third of them, or about 600,000 persons, find that the disease or disability affects their work or their work opportunities, as explained the Ministry of Social Affairs and Health today in a press release.

And the worst thing is that, as the government admits in its statement, the number of Finnish people with partial work ability is estimated to rise even more as the population ages.

The Finnish authorities have been aware of the magnitude of this problem for years. This is why past Finnish Governments have launched several programs aimed to find solutions to the challenges of keeping people with disabilities at work or finding jobs for them.

Career opportunities

One of those actions was the OTE key project 'Career opportunities for people with partial work ability’, carried out in 2015-2018 as a collaborative effort of the Ministry of Social Affairs and Health and the Ministry of Economic Affairs and Employment. Its main goal was to improve the labour market opportunities of people with impaired capacity for work. In addition, the project aimed to foster more positive and open attitudes towards greater diversity in working life.

The final report on results and recommendations of this program stresses that people with limited work ability have to face specific employment obstacles. Those are prejudice and lack of information, lack of trust, work incentive traps, risks experienced by the employers and unclear support and instructions.

The methods for implementing the change were varied: training work coordinators, the online service Tie työelämään (Road to employment), regional experiments, collaboration between employers and workplaces, collaboration with central labour market organisations as well as health and social service organisations and disability NGOs. There were also seminars and events on working life, communication campaigns and legislative measures.

The results achieved

The authors of the report explain that among the most important changes achieved by the program are:

• Increased employment rate of persons with partial work ability and easier access to jobs. Demand for labour now also reaches those persons.
• Employers’ attitudes became more positive. In 2006, Finnish employers had a very negative attitude towards hiring a person with limited work ability. In 2017, 80% of employers had a positive attitude towards those applicants.
• Legislation was passed to improve the position of persons with partial work ability in the labour market and society. For example, a linear model was prepared to coordinate partial disability pension and earned income better.
• The service system was made more efficient and customer-oriented: 700 work capacity coordinators were trained as experts both in health, social and employment services. They work in a wide range of services and workplaces, offering personal support for their clients and acting as coordinators for services and collaboration networks.

Total cost, 11.5 million euros

The Ministry of Social Affairs and and Health claims that "these efforts have been highly successful and since 2015 the number of unemployed persons with partial work ability has decreased by 30.2%". As regards the long-term unemployed with partial work ability, the Government says that its number "has decreased as well".

The Governmental figures show that at the present time there are 12,000 less unemployed job seekers with partial work ability than at the beginning of 2015. This reduction allows the Finnish state to benefit from direct savings of 100 million euros per year as unemployment costs are reduce too, says the official press release.

The Finnish Government considers the OTE project "a success". According to official numbers, the total costs were about 11.5 million euros, and regional experiments were granted government aid totalling about 7.2 million euros.

A fragmented system

However, the positive results achieved do not cover all deficiencies. The Government itself acknowledges that "the Finnish services system is fragmented, which is a challenge". "Health and social services and employment services are operating separately, as do services concerning social welfare, rehabilitation and education. This may lead to situations where the client falls in between and does not receive the services he or she needs", says the release.

The project's online service 'Road to employment' is intended for professionals working in the service system as well as for employers and job seekers. It provides all information related to employment of people with partial work ability: allowances, benefits, legislation and services.

The OTE project also developed a new low threshold service: activities centres that are information and service offices open for all. The centres provide support and guidance for persons whose work ability is weakening. Activities centres can be visited without any referral from a doctor.