FLOWS: Impact of local welfare systems on female labour force participation and social cohesion

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1 FLOWS WORKING PAPER SERIES NO. 3/2014 Marjo Kuronen and Teppo Kröger Degree and structures of women s labor market integration: the case of Jyväskylä, Finland FLOWS: Impact of local welfare systems on female labour force participation and social cohesion 1

2 FLOWS Working Paper Editor: Per H. Jensen Working papers may be ordered from: Inge Merete Ejsing-Duun Fibigerstræde Aalborg Ø ime@dps.aau.dk Tlf: (+45) Fax: (+45) Aalborg 2014 ISSN

3 About the FLOWS project: The FLOWS project has been funded under the EU FP7 program, grant Agreement no: The project started January and ended April The FLOWS project analyses the causes and effects of women s labour market integration, which is an issue that represents a major challenge for the European Union and its member states, and is supposedly also a precondition for the sustainability of the European social model. The overall aim is to analyse (1) how local welfare systems support women s labour market participation, as well as (2) the extent to which (and under which conditions) female labour market integration has contributed to the strengthening social cohesion. The project focuses on how public and private welfare services such as care and lifelong learning intended to support women s labour market integration have been designed; on how women of different classes, qualifications, ethnicities, and geographical locations have grasped and made use of such policies, and on how the increase in women s labour market integration has affected structures of inequality and social cohesion. The study is based on in-depth analysis of eleven cities, i.e. one city in eleven different countries. The cities/countries are: Brno/Czech Republic, Aalborg/Denmark, Tartu/Estonia, Jyväskylä/Finland, Nantes/France, Hamburg/Germany, Székesfehérvar/Hungary, Dublin/Ireland, Bologna/Italy, Terrassa/Spain, and Leeds/UK. The FLOWS project is composed by 6 academic work packages: WP 1: Degree and structures of women's labour market integration WP 2: Local production systems WP 3: The local welfare system WP 4: Local policy formation/local political actors WP 5: Survey questionnaire WP 6: Women s decision making WP 7: Social structures: cohesion or cleavages and segregation This working paper series reports work conducted in the seven work packages. 3

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5 Table of contents 1. Foreword 2. Selection of the city 3. Size and patterns of women s labour market integration and non-integration in the city 4. Gender differences in the patterns of labour market integration and non-integration in the city 5. Particular characteristics of the city of Jyväskylä in comparison with the national level References List of Appendix Tables: Table 1: Employment and labour force participation of people in the working age (15-64 years of age) Table 1b: Employment and labour force participation of people in the working age (15-64 years) in Jyväskylä and in Finland Table 1c: Employment and labour force participation of women and men by age group in Jyväskylä 2009 Table 1d: Employment and labour force participation of women (aged 15-64) by the age of the youngest child in Jyväskylä 2009 Table 2: Working time patterns of people in working age (15-64 years of age) in Jyväskylä 2009 Table 2b: Part-time employment as percentage of the total employment (15-64 years of age) in Finland Table 3: Main activity of people in working age (15-64 years of age) who are not in formal employment 2009 Table 3b: Unemployed, (% of the labour force) in Jyväskylä and in Finland ( ) Table 4: Main activity of women (15-64 years) by age of youngest child 0-<25 years in Jyväskylä, 2009 Table 5: Main activity of people by age group (15-64 years old) in Jyväskylä, 2009 Table 6: Main activity of people by highest educational achievement (15-64 years old) in Jyväskylä, 2009 Table 7: Main activity of people (15-64) with youngest child under 7 years (under school age) by parental status in Jyväskylä 2009 Table 8: Main activity of people by ethnic group/ citizenship (15-64 years old) in Jyväskylä 2009 Table 9: Gross salary of employed women/men (15-64 years) in Jyväskylä 2009 Table 10a: Women in leave schemes in the context of welfare state programmes in Jyväskylä, 2010 Table 10b: Men in leave schemes in the context of welfare state programmes in Jyväskylä,

6 1. Foreword This local report on the degree and structures of women s labour market integration in the city of Jyväskylä, Finland, is based on statistical information collected and previous research in this field. Statistical information required is incomplete in many more detailed issues because it wasn t available. 1 Some of these problems in gaining statistical information are explained in this Foreword and others will be discussed later in this report. Statistics presented in this report (except Tables 2b, 10a and b) have been provided by the Statistics Finland on special request, and they are mainly from the year 2009, which is the most recent year available. We have had to follow the Statistics Finland classification of the main type of activity of the population, which is not very specific and only allows us to distinguish people who are employed, unemployed, students, pensioners (only unemployment pensioners can be identified within this group), those in military and civil (non-military) service, and an unspecified group of others outside the labour force. Information concerning e.g. women on family leaves, at home caring for an old family member, in part-time work, on different forms of retirement, and sickness leave is very incomplete. For example, statistical publication on pensioners in the Finnish municipalities (Tilasto Suomen eläkkeensaajista kunnittain 2009, 2010) does not differentiate gender or the age group of in all pension types. Getting statistical information concerning ethnic minorities is also difficult. According to the Finnish law, Finnish citizens are not allowed to be classified according to their ethnicity. That is why it is impossible to get statistical information based on ethnic origin. For example, the only more traditional ethnic minority group in Jyväskylä, the Finnish Roma, cannot be statistically identified, and the representatives of the local Roma community hesitated to give even any estimation. Ethnic minorities are only able to be statistically classified according to three criteria: citizenship, country of origin, or mother tongue, and all these include problems (see e.g. Martikainen 2007). In this report, we have chosen to use citizenship as the criterion to identify ethnic minorities (Table 8) even though then we cannot include immigrants who have already received Finnish citizenship. This approach also ignores the fact that people from a certain country might belong to various ethnic groups. Furthermore, the first and the second generation of immigrants cannot be differentiated from each other. It has to be kept in mind that in Table 8, Finnish citizenship includes immigrants who have received Finnish 1 In Finland, even university researchers have to buy data and statistics for their research from the Statistics Finland. There are some free databases (e.g. from Statistics Finland, National Insurance Institution, National Institute for Health and Welfare), but the statistics they provide either did not match with the requirements of the template of WP1 or they only provided national (and in some cases regional) level statistics. Census data in Finland is collected by combining data from different registers and that microdata is not available for researchers. 6

7 citizenship as well as more traditional ethnic minorities (e.g. Finnish Roma). Thus, also direct comparisons between ethnic majority and minority are impossible. One of the major problems caused by the lack of statistical information in relation to the aims of the WP1 and the whole FLOWS project is that detailed information concerning women and men on different family leaves (maternity, parental and home care leaves) is not available or it is very incomplete, because they are statistically included either into the employed or outside the labour force category. This is very unfortunate because it would be important to know more precisely how many mothers and fathers of young children actually are at home taking care of their children and for how long. It would be also important to find out how many of them actually are on leave from employment having a work contract and thus able to return back to their previous job after the leave. Furthermore, in labour force research, those on maternity and parental leave are included into labour force but those on care leave (after parental leave up to the age of 3 of the child) are classified as being outside the labour force (even if they have an existing work contract). Even figures on family leaves presented in Tables 3, 10a and b should be taken only as estimates, because they show information concerning the numbers of receivers of different family benefits within a certain year and not exactly the numbers of those on family leaves. These are universal allowances so their eligibility is not related to a work contract or a previous work history. Even parents working during the allowance period are entitled to maternity and parental allowance (though such cases are rather rare). Anita Haataja from the Research Department of the National Insurance Institution (Kela) has paid attention to these statistical problems and to the difference between receivers of family allowances and those being on family leave (Haataja 2008; see also Haataja 2005). In spite of these statistical limitations, analysis of the available statistics provides some interesting results and a good basis for further research. Still, the local survey (WP5) to be accomplished as part of the FLOWS project as well as WP3 on local welfare systems are highly important in finding answers to many of these questions that are now left unanswered. 7

8 2. Selection of the city From Finland, the city of Jyväskylä was selected to the FLOWS project to represent a rather typical middle sized Finnish city. Jyväskylä is the seventh largest city in Finland and has just over inhabitants. Number of people in working age (15-64) was in 2010, from which were women. Jyväskylä is the centre of economic activity and a locomotive for the surrounding area and the whole Central Finland region. The share of the city of Jyväskylä is 48% of the population and 56% of the work places of the whole region (Jyväskylän kaupungin tilinpäätös 2010). Jyväskylä is known in Finland as a school and university city with over students, one third of the population in the city. The University of Jyväskylä alone has almost degree students. This makes the population and labour force structure of the city somewhat younger compared to similar size cities in Finland. It also gives some special features to the local labour market. (The local economy and labour market characteristics in relations to women s employment options are analysed more closely in WP2 report). Traditionally, Finnish women have been economically active and also worked full-time, including mothers with young children, and rather extensive public social care system (especially for children but also for older people) has made reconciliation of work and family life probably easier than in many other countries. In Jyväskylä, employment rate of women is over 60% - which was one selection criteria of the cities in FLOWS project and this level was reached for the first time already in the 1970s. Finland is ethnically very homogenous (with exception of the Capital area) and Jyväskylä makes no exception. Ethnic minorities mainly consist of recently arrived immigrants; most of them have immigrated since the early 1990s. City of Jyväskylä also takes UN recognized quota refugees, which make a rather large proportion of the immigrant population in Jyväskylä. In 2008, there were foreign citizens living in Jyväskylä, which is only 2,3% of the population, lower than in the whole country (2,8%) (Keski-Suomen maahanmuuttopoliittinen ohjelma 2010, 35). In 2009, the largest groups of immigrants came from the neighbouring countries Russia (appr. ¼ of the whole foreign population in Jyväskylä) and Estonia, but the third largest group came from Afghanistan (most of them probably as refugees). These are also the minority groups analyzed in this report. One of the main features of the local labour market is the high unemployment rate among both women and men ever since the recession of the early 1990s. This is a crucial issue that has to be kept in mind when analyzing local labour market integration of women. It will be discussed throughout this report. 8

9 3. Size and patterns of women s labour market integration and non-integration in the city Formal and informal work patterns When analyzing labour market integration of women in working age (15-64 years) as a whole (Tables 1 and 1b), a long-term trend shows that the employment rate of women reached 60% in Jyväskylä for the first time already during the 1970s (62,9% in 1980, 66% in 1990, 58,7 in 2000, and 61,5 in 2009). In ten years, between 1970 and 1980, the employment rate of women increased from 57,1% to 62,9%. In Finland, women have traditionally been economically active. Still, the 1970s was a period when public service sector (especially the fields of health and social care services) started to grow expanding through the whole 1980s, providing new employment opportunities for women (e.g. Henriksson & Wrede 2004, 14; Julkunen 2010, ). Furthermore, in 1973 the Public Day Care Act was enacted, which gradually extended public day care services for young children and improved the possibilities of their mothers to go to work. These two things probably influenced the increase in female employment at that time. On the other hand, economic recession and rapidly increased unemployment in the early 1990s most likely explains the decline in the employment rate since Female employment rate dropped below 60% in Jyväskylä for a period of more than ten years, being as low as 52,5% in 1995 and reaching 60% again only in 2006 (Table 1b). In 1970, the employment rate and the labour force participation rate for women were very close to each other (57,1% and 58,3% respectively) suggesting that the employment situation was good at that time. After that, labour force activity of women increased rather rapidly, reaching 70% by the year 1990, but in the 1990s it declined again together with the employment rate, although not as much (Tables 1 and 1b). In Jyväskylä, labour market situation and unemployment seem to explain most of the changes in labour market activity of women in recent decades. Employed women in Finland, even mothers with children, have traditionally worked full-time. Parttime work has not been very common, even if it is more typical for women than for men. The share of women working part-time in Jyväskylä was 19% in Unfortunately, data on longer local trends in part-time work is not available. Year 2009 figure is exactly the same as the national rate so it can be estimated that also the long term trend is rather similar. Nationally, since 1995, the share of part-time work of women has slightly increased, from 15,5% to 19% (Table 2b). Probably at least partly because part-time work has not been very common, also detailed information concerning the forms of parttime work are not available (classification of the time actually worked). In the Finnish Labour Force Survey the classification between part time and full time work is based on self-reporting of the 2 Local experts interviewed for the WP2 estimated that many of the part-time workers in Jyväskylä are actually students who want to work part-time to earn money along their studies. 9

10 employees or self-employed persons in their main job. The definition is not based on any hour limits, but on the respondent's own idea of the work being part-time. What comes to women on different educational achievement levels (Table 6), there are remarkable differences between their labour force situations 3. Employment rate for level 2 achievers is only 25,9% compared to 60,8 at the level 3, and 79% at levels 4 and 5. However, we should be able to compare educational achievement in different age groups of women in order to get a more accurate picture, because a large share of women who have so far achieved only compulsory school (level 2) or even secondary (level 3) education still continue their studies at the next level, and are classified as being in education (39% and 15,6% respectively). Especially many of those who have achieved level 2 education are probably younger women in the middle of their educational career. As shown in Table 5, over 50% of women in the age group of are still in education. Another remarkable group with the lowest educational level is probably older women, as might be estimated from the higher proportion of pensioners in this group. Employment options for older low-educated women in the situation of high unemployment are rather limited (e.g. Kosonen 2003). Even if we would need more age-specific data, differences between women on different educational levels still suggest that women with higher education (levels 4 & 5) are more likely to be employed (and less likely to be unemployed or outside the labour force) than women in the two other groups. Women outside the labour market What comes to women who are not classified as participating in the labour market, local statistical data is very incomplete (as described in Foreword), except what comes to unemployed women. The economic recession of the early 1990s hit Jyväskylä particularly hard, unemployment rates for both women and men reaching over 20% at that time, and declining afterwards only very slowly (see more about this in WP2 report). In 2009, the unemployment rate for women aged was 8,64%. However, there are two different methods used to measure unemployment in Finland. According to the Statistics Finland labour force survey, a person is unemployed if s/he is without work during the survey week, has actively sought employment in the past four weeks as an employee or selfemployed and would be available for work within two weeks. This is also the definition used by Eurostat. The Ministry of Employment and the Economy publishes its own data on unemployed job seekers. The Ministry s data derive from register-based Employment Service Statistics, which describe the last working day of the month. In the Employment Service Statistics an unemployed person is not expected to seek work as actively as in the Labour Force Survey definition. There are also differences 3 Level 1 has been left out here because it is statistically insignificant in the city (as probably in the whole country), including only a handful of people. 7

11 in the acceptance of students as unemployed. Thus, these statistics show higher but probably more accurate level of unemployment. In Jyväskylä, local authorities use the Employment Service Statistics and those are also shown in time series for Jyväskylä (Table 3b). According to Employment Service statistics unemployment rate for women in Jyväskylä in 2009 was as high as 11,5%, which is almost 3 percentage points higher than the one shown by the Statistics Finland (Table 3). A vast majority of unemployed women are also registered as unemployed. However, there may be a group of unemployed women who are not entitled to actual unemployment benefits but only to the so called labour market subsidy 4. This is a means tested flat-rate benefit that is dependent on the earnings of other family members (mainly the partner). 5 If these women are not entitled to the benefit due to their partner s earnings, they might not even register themselves as unemployed. In that case they are economically fully dependent on their partner. Statistically, these women are included into others outside the labour force. The share of women in education of all women aged is rather high in Jyväskylä, 15,9% (Table 3), which might reflect the high number of students and educational institutions in the city. Adult/ further education cannot be statistically separated at the local level; we can only make some estimates based on the age of women whether they are in their first education or in adult/further education. Women in education will be further analysed in the next section in relation to age and to the age of their children. It is only possible to provide some estimates on the share of women on any kind of family leave (paid maternity, parental and care leave) 6 because, as explained in Foreword, they are statistically divided 4 These are either young women who have not been able to find a job after education or long-term unemployed women who are not entitled to earnings related unemployment benefit. 5 There are basically two (or three) different unemployment benefit systems in Finland; earnings-related benefits for employees who have been members of a labour union or unemployment fund for a certain time (at least 10 months over a period of 28 months), and flat-rate benefits for those who have not been at the labour market prior to their unemployment (e.g. graduated young people) or who are long-term unemployed. The flat-rate benefit is either basic unemployment allowance or labour market subsidy from the Social Insurance Institution. Labour market subsidy is a very strictly regulated means-tested benefit and dependant of the earnings of other family members. It is meant for unemployed job seekers who enter the labour market for the first time or otherwise have no recent work experienceand for those long-term unemployed persons who have exhausted their 500-day eligibility for the basic or earningsrelated unemployment allowance ( 6 Family leave system in Finland is rather extensive but also complex. Under the Employment Contract Act, an employee is entitled to different family leaves during which s/he can receive an earnings-related maternity, paternity, or parental allowance. The maternity and parental allowances are paid for a total of 263 working days (until the child is appr. 10 months). For those mothers and fathers who have not been in employment before the childbirth there are minimum flat-rate family allowances. Furthermore, following the parental leave, either of the parents is entitled to take childcare leave and still keep her/his former job until the child is 3 years of age. Child care leave is unpaid, but the parents are entitled to receive a flat-rate child home care allowance for this period. Some municipalities also pay some extra home care allowance in addition to the national allowance. For example the city of Jyväskylä pays municipal addition of 200 per month for a child under two years of age if all the children of the family are taken care of at home and public day care is not used. Except maternity leave (105 weekdays prior and after the childbirth), all other family leaves are available for mothers and fathers alike or can be shared between them, but it is mainly mothers who use longer family leaves and child care leave has become very popular since it was introduced in the mid-1980s. (Ministry of Employment and the Economy and National Insurance Institution websites 8

12 between employed women and those outside the labour force. Some of the women on a family leave might be even categorised being in education. According to the statistics by the National Insurance Institution, 16,4% of women aged had received some kind of a family allowance in Jyväskylä in 2010 (Table 3) suggesting that they are also at home taking care of their children, but these should be taken only as estimates 7. Labour market situation of women with children will be discussed further in the next section. Furthermore, it is very difficult to get statistical information about those women who are at home caring for an old or disabled family member. In Finland, there is no real leave for long-term care, comparable to family leaves for parents of young children, though from April 2011 it is possible for employees to require a leave from work due to caring responsibilities. However, such a leave is unpaid and needs an approval from the employer. It remains to be seen whether this arrangement will work in practice or not. On the other hand, job alternation leave is an arrangement, whereby a full-time employee takes job alternation leave and the employer hires an unemployed person as a substitute for the same period. Some people use job alteration leave for informal care of a family member or relative, but their numbers have been very limited, most people take job alternation leave for other personal reasons. In addition, municipalities may grant informal care support for carers of older or disabled family members and this support includes a payment for care. However, the latest report on the receivers of this support shows that nationally in % of them were in full-time work and 8% were in parttime work. The majority (59%) of supported carers are already retired (Voutilainen et al. 2007, 33). On the other hand, it is known from a recent survey study that as many as 20 per cent of working women provide informal care regularly and even 15% of men do so (Kauppinen & Miettinen 2010, 93-94). Overall, the situation of these working carers is becoming an urgent policy issue allover Europe as they are placed between two kinds of pressures, the pressure to refamilialize increasing parts of care responsibilities due to welfare state retrenchment and the pressure to lengthen work careers due to changing age structure of the population. There is also increasing amount of research on this group (see, Overall, of the whole group of working age women in Jyväskylä almost 9% were retired in From the local statistics available, we are unfortunately not able to identify different forms of retirement 8, 7 National Insurance Institution statistics cannot be combined with Main activity of the population statistics provided by the Statistics Finland because their classification criteria are different. The same applies to the figures concerning women on sickness leave (Table 3) 8 Finnish pension provision is comprised mainly of the employment-based earnings related pension and the residence-based national pension, which provides a minimum income. Employer-specific pension provision or pension provision based on labour market agreements or pension provision based on personal insurance policies are not very common in Finland compared to many other European countries. From the beginning of 2005 a large pension reform took effect. The most important changes were to start to take into account the earnings of the whole work history in the pensionable earnings, introduction of the flexible retirement age for the old 9

13 except unemployment retirement (which is a specific pension scheme for older long-term unemployed people over 60 years of age, who are assessed not to have possibilities to return back to employment). When we look only women at the age group of years, nearly 35% of them have already retired and 7% of these retired women are on unemployment pension. So, unemployment plays a significant role here as well. The oldest age group increases remarkably the total share of retired working age women. In younger age groups only very small percentages (0,8-1,9%) are retired and they probably are on disability pension. In the age group of years the percentage of retired women is 5,3%. There are not even estimates available on women in undeclared work in Jyväskylä. In Finland in general, the share of undeclared work is estimated to be one of the lowest in Europe, around 4% of the GDP (e.g. Pfau-Effinger 2008). There is no reason to believe that the situation would be any different in Jyväskylä. Labour market situation of women in different groups Women in different age groups From women in different age groups in Jyväskylä, the age group of years displays clearly highest labour force participation (89,3%) and employment rates (80,4%), compared with women between years (79,3%/69,6%), between years (62,2%/53%), and between years (42,7%/36,2%). Within the youngest age group over 50% are still in education, and this is the case also for over 10% in the age group of years. The highest unemployment rate (9,7%) is in the age group of 25-39, and this group also displays the largest share of women outside the labour force (8,3%). This might suggest that in this age group there are many mothers with young children who are either searching for employment after taking care of their children at home, or who are still at home on child care leave (or thus classified as being outside the labour force). As mentioned earlier, within the oldest age group nearly 35% have already retired, and over 9% are unemployed, which might tell about the difficult situation of older women in the working life or even about age discrimination. Women with children The age of the child/ren 9 but also the family situation (married/cohabiting vs. lone mother) has a clear impact on the employment and labour market situation of women with children. Labour force age pension between ages 63 and 68, raising of the age limits for pre-retirement pensions, total abolishment of the unemployment and individual early retirement pension schemes as well as start to reduce the level of pensions due to increased longevity. 9 And also the number of children as shown in national statistics (OSF 2010). 10

14 participation and employment rates of women both vary remarkably in Jyväskylä according to the age of the youngest child (Tables 1d and 4). Quite surprisingly, the highest labour force participation (85%) and employment rates (71,9%) were found among women with children at the age between 3 to 6 years, and not among women whose children are already at school age 10. Among women whose children have started school recently (aged 7-9) these rates were still almost similarly high (81,2% and 70,7% respectively), but they decline after that (70%/63,5% for women with the youngest child between 10-15, and 67,2%/60,7% for women with the youngest child aged years). Also the unemployment rate for women with children aged 3-6 is much higher (13,2%) than in the other groups, suggesting that many of them have previously been at home taking care of children without a work contract and employment where to return to, and after their right to receive home care allowance has ended (when the child gets 3 years of age), they have registered themselves as unemployed. What is even more surprising is that over 25% of women who have children aged are in education (Table 4), which is a much higher rate than in any other group. It would be interesting to know what kind of education that is, and why they are so eagerly searching for education at that stage of their life when most of these women are probably in their 30s and 40s 11. A good guess might be that these women have completed their first (vocational) education before having children, and after staying at home with children maybe for several years, they have either found it difficult to get a job in their former occupation or they have wanted to improve their career options by getting more vocational/professional qualifications. Perhaps the most interesting, and also the most studied and discussed, group in Finland is women with children under the age of At the same time, this is the group on which detailed statistical information is most difficult and complicated to get (Haataja 2008 & 2005), at least at the local level. What comes to mothers with children under one year of age, it can be estimated that a vast majority of them are still at home with their child/ren either with or without a work contract. Still, the labour force participation rate in this group is as high as 61,2% and the employment rate is 59,3% (Table 4), which is explained by that women who are on maternity/parental leave from employment and have a work contract are statistically included into the labour force and into people in employment. On the other hand, over 25% of women in this group are registered as being outside the labour force either because they have stayed on maternity leave without being previously employed (having been mainly unemployed or in education) or because they have stayed on child care leave after parental leave has 10 A vast majority of children go to school at the age of 7 in Finland. 11 Hopefully we will be able to study this further in WP3 when looking at educational options that are available for women. According to the Eurostat Lifelong learning statistics, the share of women aged in lifelong learning in Finland is among the highest in the EU countries (Eurostat 2010). 12 This will be discussed further in Chapter 5. 11

15 ended 13. In addition, according to the statistics provided by the National Insurance Institution, 18% of women on maternity/parental leave (more precisely, receivers of family leave benefits) in Jyväskylä only receive a flat-rate allowance, which suggests that they have no previous work contract or work history or that their previous income has been so low that they are only entitled to a flat-rate benefit. Both labour force participation and employment rates for women with children aged 1-2 years (59,3% and 50,7% respectively) are lower than for any other group. The share of mothers outside the labour force is highest in this group (27,8%), but also the unemployment rate is rather high (8,6%). These figures suggest that half of this group has returned to work from family leave, and quite many of them would be willing to return but, on the other hand, a high proportion of women are still at home to look after their children and on child care leave. For women with children aged 2-3 years, the employment rate is over 60% but still 19% of them are outside the labour force, probably most of them staying on child care leave. What comes to women with children under school age (Table 7 14 ) in different family situations (married/cohabiting or lone mothers), there are again clear differences between the two groups: the employment rate is clearly lower among lone parents (47%) than among women with a partner (65,6%), their unemployment rate is twice as high, but also their share in education is much higher than for partnered women. It is difficult to estimate the reasons for these differences. In order to make more specific analysis, we should at least know if these two groups of women differ by their age structure or by the age and number of their children. Immigrant women It is not possible to receive official statistical information on those ethnic minority women who have Finnish citizenship. As a result, in this report we are able to analyze the labour market situation of only those immigrant women who do not have Finnish citizenship. This probably means that many of these women have lived in Finland for a rather short time. In 2009, the largest groups of immigrants in Jyväskylä came from the neighboring countries Russia (appr. ¼ of the whole foreign population) and Estonia, but also from Afghanistan (most of them probably as refugees). These are also the minority groups analyzed in this report. Several studies have shown the difficulties that immigrants, and immigrant women specifically, have in finding employment at the Finnish labour market (e.g. Forsander 2007; Joronen 2007). However, it is necessary to remember that immigrant women are a heterogeneous group whose position at the labour market varies remarkably e.g. according to their country of origin, length of residence in 13 Parental leave ends when the child is appr. 10 months. 14 We have changed the age limit from 6 to 7 assuming that this means women with children under school age. 12

16 Finland, reason for immigration, language skills and education. Immigrant women, but also Roma women, would be interesting specific groups to be studied more in detail in the local context. Comparing the three immigrant women groups chosen, we can see remarkable differences between them and also in comparison with women with Finnish citizenship. In all the immigrant groups, the employment rates are lower, the unemployment rates are remarkably higher, and also the shares of women outside the labour force are much higher than among women with Finnish citizenship. The employment rate of Estonian women is closest to Finnish women (54,9% and 62,25% respectively) whereas it is only 10,8% among Afghan women, and 31,2% for Russian women. The share of women outside the labour force is remarkably high among Afghan women, 36,5%. What is interesting is that the share of women in education is very similar in all these groups (Finnish women included) varying from 12,8% (Estonian citizens) to 16,2% (Afghan citizens). However, these statistics are not able to distinguish the type, length and level of education they are participating in; it might vary from language courses organized specifically for refugees up to university degree studies. In order to make more detailed comparisons, it would be important to know the age structures, educational levels and family situations within these groups of women. What is known from previous studies is that women who have immigrated from Russia and Estonia are often rather highly educated. It would be interesting also to know more specifically, who are the women outside the labour force and whether there are some differences between but also within these different groups of women in that respect. 4. Gender differences in the patterns of labour market integration and non-integration in Jyväskylä In 1970, there was still a wide gap in labour force participation and employment between women and men in Jyväskylä; the labour force participation rate for men was 77,3% but only 58,3% for women, and the employment rates were 74,8% and 57,1% respectively. (Table 1). Since then, in the last 40 years, the gap has narrowed and even almost disappeared as the labour force participation rate for men has gradually declined whereas it has increased for women (in 2009, 72,1% and 70,1% respectively). There has also been a similar trend in employment patterns of men and women (Table 3b). Since the early 1990s, high unemployment has influenced both genders. However, the most recent economic crisis in seems to have hit men harder than women; in 2009, the employment rate was even slightly higher among women (61,5%) than among men (60,4%).This development might be explained at least partly by the economic problems faced first by the traditional male dominated heavy industry and more recently by the ICT sector, which have 13

17 influenced more men s than women s employment opportunities (this is discussed further in the WP2 report). When looking at the different age groups of women and men (Tables 1c and 5), labour force participation in the older age groups is almost identical for both genders, being nearly 90% in the age group of and dropping to around 62% in the age group of In the youngest age group (15-24), labour force participation is rather low for both genders though it is slightly higher for women than for men (42,7% vs. 37%).This turns around in the next age group (25-39) where the labour force participation rate raises up to 86,7% for men but only 79,3% for women. The reason for this is probably the long family leaves taken mostly by women, which is suggested by the high number of women outside the labour force in this age group (8,3%). It is also interesting that this is the only age group where the employment rate of men in 2009 was higher than that of women (74% and 69,6% respectively), even if also the unemployment rate of men was higher than that of women in this age group (Table 5). When analysing gender differences at the different educational achievement levels, there are no major differences between women and men. At the secondary level (level 3) employment rate was exactly the same for women and men in Jyväskylä in 2009, but the unemployment rate was much higher for men (13,8% for men and 10% for women). Both women and men with tertiary level education are almost as likely to be employed (81,9% for men and 79% for women). In all educational achievement levels, women are more often than men outside the labour force. The shares of both women and men outside the labour force are highest at the lowest educational level (level 2), 5,6% of men and 7,9% of women, but the statistical information available does not allow analysing whether the reasons are different for women and men. Overall, the biggest differences are in the group that has only completed compulsory education (level 2). In this group, men are more likely to be employed but also unemployed, and less likely in education than women. This might suggest that men more often than women finish their educational career after compulsory education without continuing to any kind of vocational education. In conclusion, it can be suggested that the major differences between women and men in Jyväskylä are explained by high unemployment of both genders and family leaves taken mainly by women (see also Tables 10a and b). This can be seen also when comparing mothers and fathers with a partner and having a child under school age (Table 7). Employment rate of fathers is as high as 82,6% whereas for mothers it is 65,6%, and we should remember that some of these mothers (and a small number of fathers) classified as employed are actually at home on maternity or parental leave. Women in this group are also more likely than men to be in education and outside the labour force (15,6% compared to 1,5% of fathers). Situation is different among lone parents as lone fathers in Jyväskylä are even less likely to be employed than lone mothers (40,2% of lone fathers compared with 47% of lone mothers). 14

18 They are also more likely to be in education, and slightly more often unemployed than lone mothers. Compared to mothers in both groups, lone fathers are less often outside the labour force but, compared with married or cohabiting fathers, they are much more often outside it (7,8% vs. 1,5%). 15 Among the immigrant groups analysed here, there are actually no major differences between women and men. For both genders of immigrants, the employment rate is remarkably lower and unemployment rate higher than for Finnish citizens. However, Estonian women are more likely to be employed than men. Between Afghan women and men there are no major differences in employment or unemployment rates. However, Afghan men are more likely than women to be in education (39,4% and 16,2% respectively) and less likely to be outside the labour force, which might suggest that men are either more active in seeking for education and in improving their labour market skills or that they are more free from family responsibilities or both. What comes to part-time work in Jyväskylä (Table 2), women are much more likely to work part time than men (19,1% and 7% respectively in 2009). It would be interesting to see also the pattern of parttime work according to age and family situation of women and men. Even if women in Finland have for a long time participated in the labour market almost on equal terms and rates with men, there are still specific problems facing women. One of them is the gender wage gap, which is nearly 20% nationally (SVT). Reasons for the gender wage gap are complex, but one of the main explanations is certainly the strong gender segregation (especially horizontal but also vertical) of the Finnish labour market, and also the fact that women often take rather long parental and care leaves, which influences their career developments. In Jyväskylä, over 60% of women in fulltime work earned between and Euros per year whereas 56% of men earned between to Euros. Only 7% of women earned Euros or more while 20% of men earned that much. (Table 9) In part-time work, there were actually more men than women who earned only less than 10 Euros per hour (24% of men and 17% of women working part-time). Otherwise, in part-time work the division of both hourly and annual wages looks very similar for both women and men. 15 The number of lone fathers with children under school age is rather small in Jyväskylä, only 102 persons (less than 10% of lone parents with children under school age, which is about the same as the share of lone fathers in the whole country), and they seem to be quite a specific group. According to the national labour force survey in 2005, the labour market position of lone fathers in general was slightly better than that of lone mothers but remarkable worse than that of other fathers. Still, 76,6% of them were in employment. Nationally, lone mothers and fathers were as likely to be outside the labour force but lone fathers much more often than other fathers (16% of lone fathers compared with 6% of partnered fathers). Also unemployment rate of lone fathers is surprisingly high in Jyväskylä compared with national statistics. (Kröger 2009, 176.) However, it has to be kept in mind that the national statistics cover all lone fathers whereas the local figures only cover fathers with young children. 15

19 5. Particular characteristics of the city of Jyväskylä in comparison with the national level What is characteristic for the city of Jyväskylä compared to the country as a whole is certainly high and long-lasting unemployment, which influences in many ways the labour market integration of women. However, unemployment is high for both genders, and recently it has even been higher for men. Still in 1970, both labour force participation and the employment rate for women were higher in Jyväskylä than in the whole Finland but since then they have been left behind. In 2009, both rates were somewhat lower in Jyväskylä, but the labour force participation rate (71,1% vs. 72,5%) was closer to the national level than the employment rate (61,5% vs. 65,4%). At least since the mid-1990s, the employment rate for women in Jyväskylä has been 3-4 percentage points lower than in the whole country. (Tables 1 and 1b) The major difference is in the age group of years, where the employment rate of women was 69,6% in Jyväskylä but as high as 75,3% in the whole country. The gap in labour force participation rates was not that wide (79,3% vs. 82,6%). In all other age groups, labour force participation rate is actually slightly higher in Jyväskylä compared with the country as a whole. In employment rates, only the youngest age group (15-24) has the same rate as in the whole country. It has been already mentioned that the unemployment rate for women (and for men) is higher in Jyväskylä than in Finland as a whole (8,6% vs. 6,8%). The only other major difference is that in Jyväskylä more working age women are in education (15,9% compared with 12,1% in the whole country), which might reflect the high share of student population in general in Jyväskylä. What comes to labour force participation of women with children (Tables 1d, 4 and 7), the same trend continues; labour force participation is slightly lower in all groups except among mothers with children aged 3-6 where it is slightly higher in Jyväskylä compared to the whole country (85,1% and 84,7% respectively). It was mentioned already earlier that the high labour force participation rate of these mothers is rather surprising. National employment rates for mothers are remarkably higher than those of Jyväskylä in all groups, but this is especially the case for mothers with youngest (under-3-year-old) children. The widest gap is for mothers who have children between 1-2 years; 50,7% in Jyväskylä compared with 58,7% in the whole country. This might suggest, on the one hand, that in Jyväskylä there are more women who have stayed on maternity/parental leave without a work contract (from unemployment or education) and, on the other hand, that mothers with young children stay home longer using their right to child care leave and allowance. This might reflect the poor economic and labour market situation in Jyväskylä in general, and especially the difficulties of young, recently graduated women to establish their position at the labour market. Taking care of children at home might be a preferred option to unemployment. 16

20 According to the national Labour Force Survey 2009, the age of the youngest child has a clear impact on the mothers employment. Only about one-half of mothers are employed if their youngest child is aged under three. Mothers employment rate rises to 90 per cent or so, i.e. same level as fathers, only once the youngest child has reached school age. Fathers employment rate, in turn, remains equally high irrespective of the age of his children. This means that mothers still continue to take most of the long family leaves. (OSF 2010.) However, staying at home with children is still considered as a temporary phase, and the vast majority of mothers return to paid employment at the latest when their youngest child turns three, that is, when their eligibility for child home care allowance ends. The local statistics available do not allow distinguishing mothers with young children who are actually working from those who are at home taking care of the child/ren using different options for family leaves and allowances, as they are statistically only classified either as employed or outside the labour force. However, based on the Labour Force Survey 2009, Statistics Finland has analysed this further in the whole country, but only among mothers aged years. (see Figure 1). Figure 1: Working and family leaves among year old mothers by age of youngest child in Finland in 2009 Source: Official Statistics Finland Families and work Labour force survey According to these national figures, when the youngest child was under one year of age, only less than 9% of the mothers were actually at work, over one-half were on a family leave (with work contract) and about one-third were at home without having a valid employment contract. When the youngest child was between 1-2 years, more than half of the mothers were already working. Other non-employed in Figure 1 refers mainly to unemployed and students. Thus, the share of mothers who work rises fast as the youngest child grows older. (OSF.) There is no reason to assume that the situation would be remarkably different in Jyväskylä even if we do not have statistical information on that. 17

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