POPULATION AGEQUAKES

The Issue of Ageing up - The Ageing Programme of Finland

Aira Päivöke, Minister Counsellor,

Member of the Cabinet of the President of the 55. General Assembly

Excellencies, Ladies and Gentlemen,

I was asked to speak about how ageing is being addressed in the policy making and economic planning in Finland. Because the available time is limited, I will focus my remarks in particular to the issue of ageing and employment, since the ageing of labour force is a significant factor in economic development. To illustrate the importance of the issue of changing population structure already at present, let me say as an example: the age group of 24 to 49 years is estimated to reduce by 150.000 by the end of this year, whereas those aged between 50 and 60 years will increase by 170.000 people.

This example describes well the trend of this decade. The only age group which will increase significantly during the next years is that of 55 years and plus which represents the so called baby-boom generation, born during the few years after the second world war. Around the year 2010 Finland will face the fact that a large number of its population is close to the official retirement age of 65 years. This does not, of course mean that everyone will stay employed until that age. At the moment the participation in the labour force of people aged between 60 to 64 years is lower in Finland than the average in the EU. There are several options of early retirement which until now have been widely used and previously ageing people were even encouraged to retire early. Long-term unemployment of people above 55 years of age, with no vocational or professional training, normally leads to the option of early retirement. For health reasons retirement is and has been possible from 16 to 64 years of age.

Actual shortage of labour force is predicted during the next decade, and therefore, various measures have been devised in recent years to keep the present labour force longer in working life, healthy and motivated. The basic aproach in these measures is that ageing is natural, and with recognition that it has a biological, psychological, social and cultural dimension, all of which do not age at the same pace. The person and personality, as well as the environment in which he or she lives, can influence the ageing process which is naturally also related to one`s lifestyle, attitude and motivation.

The recognition of the issue of ageing is not new; the first World Assembly on Ageing was in 1982 in Vienna. Finland responded to requirements of the resolution of General Assembly, 46/91 of 1991, which resolution defined the18 principles concerning older people, by establishing an inter-ministerial and inter-disciplinary expert committee with a task to formulate Ageing Policy and Action Plan for the Government. The Committee gave its first report in 1996. Subsequently, the Government made a decision-in-principle in February 1997 to establish the Programme of Ageing Workers, the advisory board of which includes relevant ministries, pension funds, labour market organisations, local authorities, social insurance institutions, and occupational health authorities. The motto of this Programme with about 40 distinct objectives is: “Age and working experience is our national capital”.

The Ageing Programme is specifically directed to people of 45 years of age and plus to improve their possibilities for constructive employment, and to secure both financial and mental reward of their work. It addresses, in particular, the problems and specificities of small- and medium-size enterprises and their labour force. The purpose of the Ageing Programme is to identify and rectify possible age-based discrimination, in other words, to improve the motivation of the ageing people to stay employed instead of opting for the unemployment benefits or early retirement.

The National Ageing Programme looks also at reforms required in working life structures and legislation. The programme has already accomplished the amendment of existing laws, including the Labour Safety and Health Act which specifically requires that the needs of ageing employees are given special consideration and activities to maintain their productive capacity must be devised. Emphasis in these measures is on mental coping and individually planned rehabilitation programmes and measures to prevent burn-out. One of such measures is the option of early part-time retirement. In March 1998 the Government bill was introduced, which makes it possible to retire on a part-time basis at the age of 56, instead of the earlier 58 years. For this purpose, there was an income policy settlement made at the end of 1997, to which arrangement the Government is a party. Also other solutions have been developed, such as job alternation system which makes is possible to take sabbatical time off, up to 12 months, with a modest pay by the labour unions. An unemployed is employed to substitute the person, with no cost to the employer.

The Ageing Programme does not only deal with the ageing people themselves, but it includes an extensive communications component in order to encourage active general debate on this issue. The public campaigns have a clear theme “working capacity of tomorrow”. Staff of the occupational safety and health institutions, labour unions, and employment offices, are continuously trained to improve their expertise and sensitivity of ageing work force. Extensive research is also carried out. It has resulted in the development of specific, individually applicable indicators, called age barometer, which can be used to assess how the individual working capacity is changing with age.

The Ministry of Labour is in charge of improving the possibilities of older job-seekers in the labour market. This is done, among other options, through diversifying and developing employment services. The amendment in the Act on Cooperation within Undertakings requires that the needs of ageing employees are taken into account in the employer`s personnel and training programmes and strategies. Flexible working time arrangements and measures to develop work communities are encouraged. Interaction between employees of different age groups at workplaces are also emphasised. Recent research in this respect is encouraging indicating that age-based segregation is rare in the Finnish working life.

One of the principles of the Ageing Programme is that you are never too old to learn: the national strategy for life-long learning was submitted in the end of 1997. At present there are some 1000 educational institutions under public supervision which offer training, including tailor-made training to meet the needs of those aged +40. Also modalities of training have been developed into more open and accessible learning opportunities, such as distance secondary training, open universities and educational networks.

References: “Programme of Ageing Workers 1998-2002” reports

“A National Ageing policy up to 2001”, Report of the National

Committee on Ageing Policy, 1996: 1

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