aging workforce – opportunities and challenges in finland

MINISTRY OFSOCIAL AFFAIRS AND HEALTH

Aging workforce – Opportunities and challenges in Finland

Prof. Heikki Savolainen


Origins 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


Aging 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


Conduct 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


Results 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


Convincing figures

Men

WomenEmployment (%)

Age 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 50-54 73,5 76,6 78,2 79,5 80,0 79,1 78,1 77,9 79,8 79,6 55-59 50,5 51,6 54,7 58,7 62,0 64,6 64,9 64,6 63,0 65,7 60-64 22,8 22,8 23,2 26,7 28,3 28,7 31,2 31,3 35,4 39,5

Age 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 50-54 75,5 77,7 78,7 79,2 80,4 80,0 80,8 81,4 81,0 82,3 55-59 49,1 50,7 55,6 59,8 63,7 65,7 66,4 66,7 66,7 69,0 60-64 16,3 16,7 20,0 20,3 22,2 23,4 23,7 27,2 30,7 35,1


Well 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


Added 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


Work 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


Massive 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


Task force of three ministries and social partners 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


Perseverance 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


57

57,5

58

58,5

59

59,5

60

2000 2001 2002 2003 2004 2005 2006

Age

50 to 64-year-old

All

Retirementreform

Expected retirement age 2000 - 2006


International 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


Pension-age expectancy for 50 year-olds

59,5

60,0

60,5

61,0

61,5

62,0

62,5

1996

1998

2000

2002

2004

2006

2008

2010

Men

Women

Men - target

Women - target

Source: Finnish Centre for Pensions


Reimbursed sickness daily allowances by disease

0

500

1000

1500

2000

2500

3000

3500

1995 - men 2006 - men 1995 - women 2006 - women

Diseases of musculo-sceletal system andconnective tissueMental and behaviouraldisorders

Injuries, poisoning andcertain other externalcausesDiseases of circulatorysystem

Diseases of nervoussystem

Tumours

Other reasons

Thousand sickness daily allowances

Source: Social Insurance Institution of Finland


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


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.


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


The main themes of the Forum

1. Dissemination of good practices2. Balancing (managing) work load and stress at

work3. Safety at work4. 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.


National 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)

aging workforce – opportunities and challenges in finland

Health & Medicine