Ageing and Employment Policies: Finland by Organisation for Economic Co-Operation and Development

By Organisation for Economic Co-Operation and Development

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Moreover, in 2002, the rates for all age groups were still substantially higher than in the 1970s and about three times higher than in 1990. 6. a Unemployment rates in Finland by age, 1970-2002 Percentages 25-49 50-54 55-59 60-64 25 20 15 10 5 0 1970 1974 1978 1982 1986 1990 1994 1998 2002 a) There is a break in these series because of a change in the classification criteria in 1997 after which date the rates are somewhat lower than they would be had the pre-1997 criteria been applied. Source: OECD Labour Force Statistics and Finnish Labour Force Survey.

However, what is clear is that most other countries have a relatively larger potential labour reserve consisting mainly of women, since on average around 23% of women aged 25-49 and 53% aged 50-64 are not in the labour force in the OECD area compared with 15% and 35%, respectively in Finland. C. 8). For Finnish women, the effective retirement age has fluctuated to some extent but since the early 1980s has fallen from almost 64 years to just under 60 years. The decline is a result of the introduction of several early retirement schemes between the early 1970s and late 1980s, but also the relaxation of the eligibility requirements for receiving a disability pension.

4. Differences in Finnish participation rates between prime-age and older workers by gender, 1970-2002 Percentage points 40 35 30 25 Women Men 20 15 10 1970 1974 1978 1982 1986 1990 1994 1998 2002 Source: Finnish Labour Force Survey. 2. Employment situation Achieving higher rates of labour force participation among older people will be only part of the battle in coping with population ageing. Even if participation rates are high, substantial part-time employment and work absences among older workers could reduce effective labour supply in terms of hours worked.

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