Research study: Previous Government's employment policy measures a step in the right direction

During the 2011-2015 government term, periods of unemployment lasted longer and brought a job in fewer cases than before. With unemployment was high and economic growth sluggish, the employment policy measures were nonetheless a step in the right direction. This transpires from a study conducted by the Rehabilitation Foundation into the operation, outcomes and future of employment policy measures. The study was carried out as part of the implementation of the Government's 2014 plan for analysis, assessment and research.

It examined how well partnerships between employment and economic development services, the service markets and service procurement operate and how to develop them. It also assessed the effectiveness of online services as part of overall public employment and entrepreneurial services and whether different user groups are in an equitable position when using online services. The study also examined the effectiveness of the employment policy implemented over the previous government term.

Positive impact of measures

The study shows that the adopted employment policy has had a favourable effect on job creation, even though, owing to slow economic growth, unemployment has grown and consequently public expenditure on unemployment has risen. The reforms made in employment and entrepreneurial services have been positive. Restructuring protection and reacting to sudden structural changes has meant that more job vacancies have been filled and there have been more business start-ups. The youth guarantee scheme and the employment pilot programme in local government have proven to be worthwhile reforms.  

More robust partnerships in managing employment

As a result of the productivity programme implemented in central government, human resources in employment and entrepreneurial services have been slashed by one quarter. Based on the study, the existing resources are insufficient to cope with the ever-increasing demands. The study in fact observes that these services have neither the resources nor the tools to respond to the challenging situation alone. Instead, more robust partnerships are called for between public and private employment service providers and with customers. Employment and entrepreneurial services are in fact being provided more often through partnerships and online services.

The research study was conducted by a research group led by the Rehabilitation Foundation. There were members from the Small Business Centre in the School of Business at Aalto University, the Work Research Centre of the University of Tampere, Arnkil Dialogues and Spangar Negotiations.

Employment policy effectiveness and alternatives. Final report into the operation, outcomes and future of employment policy measures (in Finnish)

More information on Government analysis, assessment and research activities at tietokayttoon.fi

Inquiries: Mika Ala-Kauhaluoma, Research and Development Manager, +358 44 781 3096, Sirpa Mertala, Senior Researcher, +358 40 517 6379 and Sari Pitkänen, Team Manager,  +358 44 781 3185, Rehabilitation Foundation