MINISTRY OFSOCIAL AFFAIRS AND HEALTH
Aging workforce – Opportunities and challenges in Finland
Prof. Heikki Savolainen
MINISTRY OFSOCIAL AFFAIRS AND HEALTH
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
MINISTRY OFSOCIAL AFFAIRS AND HEALTH
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
MINISTRY OFSOCIAL AFFAIRS AND HEALTH
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
MINISTRY OFSOCIAL AFFAIRS AND HEALTH
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
MINISTRY OFSOCIAL AFFAIRS AND HEALTH
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
MINISTRY OFSOCIAL AFFAIRS AND HEALTH
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
MINISTRY OFSOCIAL AFFAIRS AND HEALTH
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
MINISTRY OFSOCIAL AFFAIRS AND HEALTH
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
MINISTRY OFSOCIAL AFFAIRS AND HEALTH
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
MINISTRY OFSOCIAL AFFAIRS AND HEALTH
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
MINISTRY OFSOCIAL AFFAIRS AND HEALTH
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
MINISTRY OFSOCIAL AFFAIRS AND HEALTH
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
MINISTRY OFSOCIAL AFFAIRS AND HEALTH
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
MINISTRY OFSOCIAL AFFAIRS AND HEALTH
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
MINISTRY OFSOCIAL AFFAIRS AND HEALTH
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
MINISTRY OFSOCIAL 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
MINISTRY OFSOCIAL 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.
MINISTRY OFSOCIAL 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
MINISTRY OFSOCIAL AFFAIRS AND HEALTH
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.
MINISTRY OFSOCIAL AFFAIRS AND HEALTH
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)