1. Finnish PES Reform Ilkka Nio Mutual Learning – Benchmarking among Public Employment Services Workshop 4, Vienna, 16/17 June 2009

2. 2 Content 1.Background (3-6) 2. New PES-service model (7-11) 2.1 Service Model of the Employment Office (12-14) 2.2 Labour Force Service Centres (15-19) 3. Main evaluation results (20-23) 4. Performance indicators to assess the reform (24) 4.2 National indicators (25-29) 4.1 BM indicators of PES performance (30-34)

3. 3

4. 4

5. 5 Probability of an unemployment spell to end during a month by duration

6. 6 Quick transition from work to work

7. 7 PES Service model Finnish tradition Legislation Agreed targets Common service products Employment offices are very free to organise their service model  More emphasise on a similar model  Our aim: to build up a separated service model to face the challenges Main Employment Office: focus on the open labour market Labour Force Service Centre: focus the services for difficult groups

8. 8 Structural Reform of PES 2004-2007 To strengthen a multi- channel service model and increase the use of e-services and call centres To develop market orientated services in the employment office To ensure enough support to the most disadvantaged groups Main Targets

9. 9 Structural Reform of PES Labour Force Service Centre Self Service, e-Services Individual Services Special Services e-services Job centre EMPLOYMENT OFFICE Services for jobseekers placement career guideance labour market training Services for employers special units wide range of services

10. 10 Structural Reform of PES - Two prongs Main Employment OfficeLabour Force Service Centre Target Group ”Ready to work” -jobseekers, employers, jobseekers close to the open labour market People in need of very intensive service, the most disadvantaged groups Key Services Job-search, job brokerage, employer contacts, career guidance, labour market training Multi-professional coaching and counselling, assessment of needs EmphasisSelf-service and activity of customers, PES’ own services Complementary tailor-made services, holistic life support, subcontracting: rehabilitation additional services Key Partners Employers, educational institutesMunicipalities, the third sector, private service providers

11. 11

12. 12 Service Model of the employment office The key features of the service model Strong start, early intervention Customer responsibility Responsibility areas according to the occupations Specialised service units for employers

13. 13 Strong start - early intervention First interview within two weeks Renewed individual action plan Short assessment, clear targets Emphasis on concrete jointly agreed activities Follow up of activities (personal contacts, reminding system) Customer needs assessment Profiling method To indentify those jobseekers at risk of becoming long term unemployed Offering job is the objective number one

14. 14 Service Model of the employment office Special units for employer’s services Strong emphasise on the services for employers Wide range of services Free of charge basic services Paid services: hiring out of personnel & services for recruitment, personnel redundancies and the development of the personnel and cooperation Change security model

15. 15 Structural Reform of PES LABOUR FORCE SERVICE CENTRES (39) established in co- cooperation between PES and municipalites joint management for the most disadvantaged groups EMPLOYMENT OFFICE (PES) Services for jobseekers placement career guidance labour market training Services for employers special units wide range of services MUNICIPALITY social services heath care Pension Insurance Institution

16. 16 Organisational position Labour Force Service Centre a multi-professional permanent network of co-operating partners employment office municipality social Insurance Institution the network is based on a co-operation agreement according the agreement the services will be provided jointly in co-located premises 39 Labour Force Centres 620 full time officers (320 from the PES)

17. 17 Funding Administrative costs of the Labour Force Service Centres: The municipalities and PES share the costs arising from the operation of the Labour Force Service Centres (50 % - 50 %) The Social Insurance Institution will pay its own costs Cost for the services and measures (e.g. Public Employment Services) are paid by the ‘parent’ administration. Setting up Labour Force Services Centres is based on voluntary commitments by the parties.

18. 18 Customers The customers sent by local employment office or by municipal social services on the basis of the service needs Primarily those with serious difficulties to enter the labour market (over 500 days labour market support). Secondary whose unemployment period is expected to be prolonged and for whom the basic PES services are considered inadequate. Customers who need multiprofessional services and are expected to benefit from additional services.

19. 19 Services provided Combination of services provided by the parent organisation, additional services bought from the other expert organisations Assessment of the physical and mental health, medical health care and vocational rehabilitation, individual activation activities by the social service, labour market measures: coaching, training, subsidised work. Expert services are provided by nurses, doctors, dept advisors, social workers, training advisers, vocational guidance psychologists, career planners, individual coaches, employment advisers.

20. 20 Evaluation of the new service model  both customers and the staff of PES have been satisfied  strategically right operations have been done and the changes in the service process lead to the intended direction  stronger and more active start of customer service has contributed to lower both unemployment and structural unemployment. The early intervention and developing of internet based services have had a clear causal connection to the prevention of unemployment  the ways of action do not change instantly but they develop gradually and at different times in different offices  the reform must be understood as one of the sequential reforms of employment services going on continuously -the connections between the two “strands“ of reform, the PES and LAFOS, have been unsatisfactory. There is still challenge in how to activate the most difficulty employable persons and how to place them in the working life -recruitment problems have not relieved

21. 21 Evaluation Labour force service centres (LAFOS)  customers are very satisfied  assessment of situation of the customers has been done in a very professional way  multi-professional co-operation seems to work well, better co-operation between the state and municipalities  premature to estimate the effect on structural unemployment  barriers complicating customer service have been created in some places. It is not easy to define a joint management structure suitable for all centres  customer volumes have been small in relation to the total number of disabled and those employed with difficulty  new indicators are needed to measure the impact on welfare and employment.  finding permanent solutions – entry into the labour market is extremely slow and difficult. The threat is that the service centres may remain the “far end” for the hard to place customers.

22. 22

23. 23

24. 24

25. 25 Structural unemployment (hard to place job-seekers) in 2002, 2006 and 2007, in average 2007200620022007 - 2002 changechange % a Long-term unemployment ( 12 months) 52 000 64 80079 100-27 100-34,2 b Recurrent unemployment (12/16) 33 800 39 500 45 600-11 800-25,8 c Unemployed after participation in active labour policy measures 28 600 30 500 38 500- 9 900-25,7 d Recurrent participation in LMP measures (12/16) 10 300 11 700 15 600-5 300-33,9 Structural unemployment ( a + b + c + d) 124 800146 500178 800-54 000-30,2 b) unemployed who have been unemployed in total 12 months during the last 16 months d) those placed recurrently in LMP measure who have been unemployed or in measure in total 12 months during the last 16 months

26. 26

27. 27

28. 28

29. 29

30. 30

31. 31

32. 32

33. 33

34. 34