Social impact of employment of people with partial work capacity
Model for management by knowledge and monitoring performance of employment support measures
Effective promotion of employment requires management by knowledge. The effectiveness and cost-benefits of measures to promote the employment of people with impaired capacity to work should be systematically evaluated. So far, this has not been possible. The Ministry of Economic Affairs and Employment therefore launched a project to develop a model for impact-based employment in April 2020. The project was part of the working capacity programme of Prime Minister Sanna Marin's Government.
The aim of the project was to evaluate the social and human impacts of the employment of people with impaired work capacity. Another objective was to improve the monitoring of cost-effectiveness and the selection of employment promoting measures based on results. The aim was to develop a model that would enable the monitoring of changes in the conditions for employment among customers and to evaluate which measures promote employment.
The model was developed by the Centre of Expertise for Impact Investing together with the City of Helsinki, the ELY Centre of Central Finland and the Cities of Rovaniemi and Kemijärvi. The model is based on customer groupings created with the help of statistical analysis. The grouping can be used to anticipate the customers’ need for services and evaluate their employment opportunities. The model was tested in 2021 by the local government pilot on employment of Helsinki, the ELY Centre of Central Finland, and a working capacity programme project of the Ministry of Social Affairs and Health in the Rovaniemi and Kemijärvi regions.
Systematic monitoring is needed
The idea of the modelling is to systematically evaluate the effectiveness and results of employment measures. To ensure its success, the customer’s entire service path must be modelled from the start to the end. The customer’s initial situation must be verified with background variables that are essential from the perspective of the service. Subsequently, these variables must be monitored throughout the service.
The model developed in the project would provide a means to monitor whether a customer finds employment or not or moves outside the labour force for one reason or another. The existing information systems do not enable this kind of monitoring thoroughly.
Technical specification and implementation to be examined
The introduction of the model as a knowledge-based management tool and for evaluating the impacts of employment requires a great deal of information at different stages of the service path. In addition, monitoring employment requires the use of information obtained from the Incomes Register. This would require legislative amendments.
For this reason, the Ministry of Economic Affairs and Employment has launched a study on a more specific technical definition and implementation of the impact-based model. The study will be carried out by the Development and Administration Centre for ELY Centres and TE Offices (KEHA Centre) in 2023. In addition, the Ministry of Employment and the Economy will examine whether legislative amendments are needed to implement the model.
- Model for impact-based employment (Press release by the Ministry of Economic Affairs and Employment, 2 September 2020)
Read more about the model:
Inquiries: Tuija Oivo, Ministry of Economic Affairs and Employment, tuija.oivo(at)gov.fi and Jenni Wessman, Ministry of Economic Affairs and Employment, jenni.wessman(at)gov.fi