Employment, Social Affairs & Inclusion

Database of labour market practices

This database gathers practices in the field of employment submitted by European countries for the purposes of mutual learning. These practices have proven to be successful in the country concerned, according to its national administration. The European Commission does not have a position on the policies or measures mentioned in the database.

Finland Youth Guarantee
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Original Title: Nuorisotakuu
Country: Finland
Responsible body: The Ministry of Employment and the Economy has the overall coordination responsibility. The Ministry of Education and Culture has the responsibility of the implementation of Education Guarantee and the Skills Program for Young Adults (Both programmes belong to the Youth Guarantee). The Ministry of Social Affairs and Health is responsible for developing rehabilitation services.
Name(s) of other organisations involved (partners / sub-contractors): Ministries; PES; Municipalities; Employers; Social partner organisations; Third sector stakeholders; Youth organisations
Start Year of implementation: 2013
End Year of implementation: Ongoing
EU policy relevance:

It is consistent with the employment guidelines, Country Specific Recommendations and with several EU instruments, such as European Social Fund (ESF) activities to increase employment for disadvantaged young people. Additionally, the measure is in line with the 2013 European Council recommendations on establishing a Youth Guarantee.

The measure aims to increase education levels and employment among young people by supporting the transition between education levels and from education to employment for vulnerable young people.

The measure prevents school dropout, tackles youth unemployment and increases youth employability.

National labour market context:

Both prior to and in the context of the financial crisis the Finnish youth unemployment rate is higher than the general unemployment rate in the country. In 2008, on a monthly average there were 22,374 unemployed young jobseekers. Youth unemployment rose sharply during 2009 when the monthly average of young unemployed jobseekers was 36,165. In 2012 the monthly average came down to 32,000.

Additionally, estimates from 2009 suggested that about 29,000 young people were excluded from the aforementioned statistics. These people were neither in education or training, nor registered as job-seekers. They were typically vulnerable and hard-to-reach young people, which is why their integration into education or the labour market was extremely difficult.

Because of this situation for young unemployed people, the Finnish government implemented various measures to support their labour market integration. In this context, amendments to the 2011 Finnish Youth Act in particular stressed the importance of multi-disciplinary cooperation on the local level.

Policy area: Active labour market policies, Education and training systems, Gender equality, Job creation, Labour market functioning and segmentation, Labour market participation, Prevention of poverty through inclusive labour markets, Skills supply, productivity and lifelong learning, Social inclusion and anti-discrimination, Social security systems, Wage-setting mechanisms and labour cost developments, Work-life balance
Specific policy or labour market problem being addressed:

At present in Finland, there are approximately 120,000 young people aged 20–29 who do not have a post-basic qualification. The lack of a secondary education qualification is the single most significant factor behind exclusion from the labour market and society. The number of socially excluded young people without an upper secondary education qualification is approximately 40,000. Of these, the number of those missing from the statistics is around 25,000. These young people form the so-called “hard core” of marginalised young people, because they do not participate in education or working life, and are not even registered as jobseekers.

Despite the effectiveness and quality of the Finnish education system, not all young people’s welfare is at an adequate level. There is a number of health and mental problems that hinder the transition to further education and working life. The social exclusion of young people costs society hundreds of millions of euros per year.

Aims and objectives of the policy or measure:

The objective of the youth guarantee is to help young people gain access to education and employment. Successful execution of the youth guarantee requires cooperation among national and municipal authorities, the business sector and other organisations. Methods of implementing the guarantee include measures related to the Educational Guarantee, the Skills Programme for Young Adults, employment and economic development services for youth (PES) and rehabilitation services, including municipal social and health care services and other individual services for young people, such as youth outreach work and youth workshop activities.

The objective of the Youth Guarantee is to support young people in gaining a place in education and employment, to prevent prolonged youth unemployment, to identify factors contributing to the risk of social exclusion and to offer support at an early stage, in order to prevent social exclusion and marginalisation of young people.

Main activities / actions underpinning the policy or measure:
  • PES services
  • Education Guarantee
  • Skills Program for Young Adults
  • Youth work
  • Rehabilitation services
Geographical scope of policy or measure: National
Target groups: Low-skilled people, People not in education, employment or training (NEETs), Young people (aged 16 to 25 years)
Outputs and outcomes of the policy or measure:

The Ministry of Employment and the Economy has ordered an independent study to monitor the implementation process of the Youth Guarantee during 2013. The final report is expected to be ready at the end of March 2014. It is expected that the report will produces clear indicators on how the Youth Guarantee should be followed considering the wide scale of the programme.

The implementation of the Youth Guarantee is continuously followed by all the relevant ministries.

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