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Faces of joblessness in Finland: A people-centred perspective on employment barriers and policies

Author

Listed:
  • Emily Farchy
  • Herwig Immervoll

Abstract

Following five years of economic growth, employment in Finland increased to 72.6% of the working-age population in 2019. The effects of the strong recovery, however, were not felt by all, and long-term unemployment remains stubbornly high. This report uses a statistical clustering model to map individuals with similar support needs into 8 “faces” of joblessness: (1) the rural inactive; (2) unstable workers; (3) skilled retirees; (4) urban active; (5) female carers; (6) low-skilled youth; (7) prime-aged low skilled; and finally (8) those with limited financial incentives. These results shed light on the effectiveness of existing employment support strategies, and lay the foundation for the development of holistic policy packages: that are tailored to the barriers people face; that recognise most people with weak labour-market attachment face multiple barriers, and that coordinate policy interventions across policy domains and institutions accordingly.

Suggested Citation

  • Emily Farchy & Herwig Immervoll, 2021. "Faces of joblessness in Finland: A people-centred perspective on employment barriers and policies," OECD Social, Employment and Migration Working Papers 258, OECD Publishing.
    • Handle: RePEc:oec:elsaab:258-en
    DOI: 10.1787/ca3bc4a4-en
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    More about this item

    JEL classification:

    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • J8 - Labor and Demographic Economics - - Labor Standards
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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