Every third unemployed person in Finland is over 50, the July employment review from the KEHA Center shows. When the economy is struggling, blaming the unemployed, cutting their benefits, or pushing people from part-time to full-time jobs is pointless, says Member of Parliament Miapetra Kumpula-Natri.
Unemployment has increased across all age groups, and there simply aren’t enough jobs for everyone. Periods of unemployment have also grown longer, and the 40 days required to qualify for full unemployment benefits are often not enough to find re-employment.
– The government’s idea is that if you whip people a bit, they’ll go to work. We believe that when jobs are scarce, it makes more sense to use employment measures and improve labor services so that the existing vacancies can be filled. Punishment and cuts to unemployment benefits only bring more hardship to those who have lost their jobs, Kumpula-Natri says.
She welcomes the government’s study on improving the employment prospects of people over 55. As a result of the study, Finland is now piloting a career maintenance model, the results of which are still pending. Targeting measures at older workers is necessary, Kumpula-Natri argues, since Finland lags behind other Nordic countries in employing those over 50.
– No silver-bullet measures to advance employment have been found so far, Kumpula-Natri says.
Updating skills has become harder
Many government decisions have worsened the labor market situation of those over 50. These include cuts to unemployment benefits, the removal of the age-based exception for earnings-related allowance, raising the thresholds for reimbursable commuting costs, and the abolition of adult education allowance.
– Abolishing adult education allowance hits people with outdated skills who may want to change professions. For example, many women have discovered after raising children that they have the makings of excellent healthcare professionals. In those cases, adult education allowance has worked very well, particularly in sectors suffering from labor shortages.
Another example of the need for updated skills is the digitalization of working life and the rise of artificial intelligence. Although these are often seen as areas of expertise for younger workers, maintaining sustainable careers also requires training older workers in new technologies. Kumpula-Natri points out that AI is so new that no one has worked with it for long yet.
– The great transformation that can be expected is something everyone could take part in. It requires updating skills. Some companies train their entire workforce, while others weed out those whose skills may not meet the new demands.
Diversity is an asset in the workplace
Legislative tools to support the employment of over-50s are only part of the equation, Kumpula-Natri says. Workplace attitudes must also change, and age discrimination must be addressed. She calls for greater appreciation of diversity in Finnish workplaces.
– Research shows that diversity is beneficial. If everyone comes from the same mold, it’s easy to move fast – but are we moving in the right direction? Kumpula-Natri asks.
The experience of seasoned workers can be particularly valuable for workplaces in today’s uncertain geopolitical climate. Over-50s have already lived through multiple economic downturns in their careers and bring insight born of experience.
Whereas a younger employee may see a job as a stepping stone for a couple of years, an older employee is often looking for a role to carry them through the rest of their career.
– Quite often, older employees are more committed, with the resilience needed to weather a bumpy working life. Workplace diversity would also support risk management in terms of employee retention, Kumpula-Natri says.
Don’t lose hope
Ultimately, the strongest support for employing over-50s would come from overall economic growth. Planned investments in the green transition alone amount to billions of euros.
– To ensure those investments are made in Finland, no uncertainty should be allowed to creep into that sector. Right now, there’s a bit of an atmosphere of doubt: can we build wind power, or will arbitrary distance requirements be imposed? Kumpula-Natri criticizes.
To those seasoned workers who have lost their jobs, she offers words of encouragement: take care of yourself and hold on to hope.
– It’s well known that after a few months of unemployment, it’s natural to feel setbacks: I’m not wanted, I’m not capable, or I’m not accepted. At that stage, a strong support network is essential to remain work-ready. Holding on to positivity, your health, and hope is crucial. I believe most people do everything they can, but there are simply far fewer jobs available, she says.