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2012 A Glance at Akava Highly educated in the Finnish labour market

A glance at Akava

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Page 1: A glance at Akava

2012

A Glance at AkavaHighly educated in the Finnish labour market

Page 2: A glance at Akava

A Glance at Akava 2012

Contents

Akava 2012 3

Akava and the labour market 4

Extending working careers 10

Wellbeing at work 15

Salaries 19

Taxation of employees 24

Education 28

Entrepreneurship 31

Union membership 33

2

This publication can be found on the Internet at www.akava.fi/en/Printing house: Kirjapaino Uusimaa, 2012ISBN: 978-952-5628-52-4

Page 3: A glance at Akava

A Glance at Akava 2012

Akava 2012

Akava, the Confederation of Unions for Professional and Managerial Staff in Finland, is one of the three independent trade union confederations in Finland

Akava’s 35 affiliates have a total membership of 573,000 including approx. 107,000 student members

Akava’s unionisation rate is about 70 per cent. 27 per cent of trade union members in Finland are Akava members.

Akava represents the interests of professionals and managerial staff and others with a high level of education.

Akava oversees its members’ economic, professional and other common interests.

3

Page 4: A glance at Akava

A Glance at Akava 2012

Akava and the labour market

Three out of four Akava members are in permanent full-time employment. Atypical work is common among young women. In 2010, 39,000 Akava members were employed on a fixed-term employment contract. Of these, 78% were unable to get permanent employment, though they wanted it.

50% of highly educated individuals work in the private sector. 29% are employed by local authorities and one in ten is employed by the government. 8% are entrepreneurs or self-employed.

Akava members mainly serve in expert, teaching or managerial positions. The most typical for men are senior expert positions, and for women senior expert positions in teaching. In all age groups, the proportion of men serving in managerial positions is larger than that of women.

At the end of 2010, 46,000 people with tertiary-level education were unemployed in Finland. The unemployment rate for this group was 4.6%. Since 1994, the unemployment rate among those who have completed basic and upper-secondary education has fallen faster than that among the highly educated.

Long-term unemployment is on the increase. The average length of time that highly educated individuals are unemployed is a total of 40 weeks. Approximately 5,400 highly educated Akava members had been unemployed for over a year in October 2011.

Employment rate among recently graduated The employment rate among those who graduated from university in 2005 was relatively good in

2010. In some sectors, people were clearly or slightly overqualified for their jobs five years after graduation.

The situation was the reverse in a number of professional sectors, in which work tasks are felt to be too demanding.

4

Page 5: A glance at Akava

A Glance at Akava 2012

012345678910111213141516171819202122

0123456789

10111213141516171819202122

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

%

Unemployment rate 1990–2010 by educational level, %

5

Source: Statistics Finland, Labour force statistics; Akava’s own estimation

%

Basic education only

Upper secondary

Lowest level of tertiaryeducation and lower

degree level

All

Higher degree level of tertiary education &

doctorate

(67,000)

(111,000)

(224,000)

(35,000)

(12,000)

Page 6: A glance at Akava

A Glance at Akava 2012

Unemployed Akava members in selected fields, March 2012

6

Excluding persons laid off, situation 31.3.2012Source: Statistics of Ministry of Employment and the Economy

-1 000 0 1 000 2 000 3 000 4 000 5 000

Bachelor of EngineeringBachelor of Business Administration

Master of HumanitiesMaster of Engineering

Master of BusinessMaster of Natural SciencesMaster of Social Sciences

Master of ArtsBachelor of Economics

Master of EducationBachelor of Social Services

DoctorateBachelor of Humanities

Master of LawLicentiate

Bachelor of Natural SciencesBachelor of Nursing

Master of AgricultureMaster of Theology

ArchitectMaster of Medicine

PharmacistMaster of Dentistry

Decrease IncreaseMarch 2012

Change per previous 12

months4 204 -1752 059 2161 751 1101 586 -1291 356 961 234 51936 31603 2556 -19539 -30531 13510 53448 26323 35261 -5229 29202 -2189 18127 295 -873 572 1015 -3

Page 7: A glance at Akava

A Glance at Akava 2012

0

10

20

30

40

50

60

70

80

90

100

0

10

20

30

40

50

60

70

80

90

100

Alle 20 20–29 30–39 40–49 50–59 60–64

%

Age group

Employment rate by age, 2010

7

Persons with at least a master’s degreeSource: Statistics Finland, Labour Force Statistics 2010

Highly educated

All wage and salary earners

AllHighly

educated

Employment rate, % 67.6 84.9

Unemployment rate, % 8.5 4.4

Outside labour force, % 26.1 11.2

Page 8: A glance at Akava

A Glance at Akava 2012

Employment rate among older age groups, 2000–2010

8

Persons with at least a master’s degreeSource: Statistics Finland, Labour Force Statistics 2010

55–59 years of age 60–64 years of age

5963 65 66 66 65 67 68

71 7174

86 8588 88 89

0

10

20

30

40

50

60

70

80

90

100

00 01 02 03 04 05 06 07 08 09 10

%All Highly educated

23 25 26 27 2934

37 39 41 39 39

56 5760 57 58

0

10

20

30

40

50

60

70

80

90

100

00 01 02 03 04 05 06 07 08 09 10

%

All Highly educated

Page 9: A glance at Akava

A Glance at Akava 2012

Employment relationships in Finland in 2010, %

9

Source: Statistics Finland, Labour Force Statistics 2010

Akava members All wage and salary earners

81 %

11 %

8 %

Permanent full-time workFixed term full-time workPart-time work

75 %

11 %

14 %

Permanent full-time workFixed term full-time workPart-time work

Page 10: A glance at Akava

A Glance at Akava 2012

Extending working careers

Over 70% of Akava members expect to remain in employment until they are at least 63 years of age.

The employment rate of highly educated individuals over the age of 60 was approximately 20 percentage points higher than it was for other employees in 2010.

6% of highly educated individuals aged 58-62 are receiving a disability pension or are unable to work due to a long-term illness; the corresponding figure for all employees was 20%.

In 2010, the average age of those retiring on an earnings-related old-age pension was 63.4. One in three retired people retired on a disability pension at an average age of 52. Due to this, the overall retirement age was 59.6.

Mental health problems were the most common reason for highly educated individuals retiring on a disability pension.

Job security, reducing time pressure and improving managerial and supervisory skills in particular are all factors that make it easier for people to cope at work.

The majority, 63%, of Akava members are prepared to start a new job after receiving rehabilitation if the alternative is to retire on a disability pension.

60% of Akava members would be prepared to continue working after 63 years of age if they were to receive more annual leave or other time off.

Almost 70% of Akava members are very or fairly willing to work after they retire on an old-age pension.

If the funding of pensions has to be changed, Akava members would prefer their retirement benefits to remain the same and to pay more in employment pension contributions.

10

Page 11: A glance at Akava

A Glance at Akava 2012

62

32

3

2

1

59

32

4

5

1

0 10 20 30 40 50 60

Normal old-age pension

Disability pension

Early old-age pension

Unemployment pension

Special pension for farmers

%

2011; total 71,600 persons 2010; total 70,700 persons

Persons retiring in 2010 and 2011 with a pension based on their ownwork history by pension benefit

11

Source: Statistics of Finnish Centre of Pensions

• In 2009 for the first time more people retired on a normal old-age pension than on a disability or an unemployment pension.• In 2010 one in three retired people retired on a disability pension at an average age of 52.• Average age of those retiring, years: 2009 2010 2011

• Old-age pension 63.4 63.5 63.5• Unemployment pension 60.3 60.9 61.7• Disability pension 52.1 52.0 52.1• All 59.5 59.6 59.8

Page 12: A glance at Akava

A Glance at Akava 2012

8,100

6,700

6,500

1,700

7,300

6,600

6,900

2,500

0 2000 4000 6000 8000

Diseases of the musculoskeletal system

Other diseases

Mental disorders

Diseases of the circulatory systemPersons

2011 2001

Persons retiring on disability pension in 2001 and 2011, by main diagnosis

12

Both in 2001 and in 2011 approx. 23,000 persons retired on a disability pension. In 2011 almost one in three of these was due to a mental disorder.

Source: Statistics of Finnish Centre of Pensions

Share 2011, %

35 %

29 %

28 %

7 %

Page 13: A glance at Akava

A Glance at Akava 2012

Average intended age of retirement of Akava members

13

Three in four persons think they will stay in working life at least until the age of 63.The employee pension scheme reform of 2005 has achieved the desired results.

Sources: *) Akava Member Opinion Polls **) Statistics Finland, Quality of Work life Survey***) Survey by TNS Finland commissioned by Akava, autumn 2010

61.2

61.3

62.0

62.8

63.2

58 59 60 61 62 63 64

1997*

2001*

2004*

2008**

2010***

Years

Page 14: A glance at Akava

A Glance at Akava 2012

14

Total number of respondents: 1,094Source: survey by TNS Finland commissioned by Akava, autumn 2009

80

69

62

61

59

49

48

47

47

45

41

38

35

16

27

30

32

31

41

36

40

47

46

49

47

52

4

4

7

7

10

10

16

13

7

9

9

15

12

0 10 20 30 40 50 60 70 80 90 100

Job certainty

Reduction in pace of work

Improvement of leadership skills

Improvement of working environment

More flexible working hours

Improvement of occupational health care services

Job alternation or sabbatical leave

Part-time pension

Reduction of work load

Rise in salary

Improvement of rehabilitation possibilities

Increased education & training possibilities

Change in work assignments

%

Important Not very important Meaningless

Job certainty

Reduction in pace of work

Improvement of leadership skills

Improvement of working environment

More flexible working hours

Improvement of occupational health care services

Job alternation or sabbatical leave

Part-time pension

Reduction of work load

Rise in pay

Improvement of rehabilitation possibilities

Increased education & training possibilities

Change in work assignments

Factors enabling Akava members to remain longer in working life

Page 15: A glance at Akava

A Glance at Akava 2012

Wellbeing at work

The average working week of Akava members in full-time employment was 40.6 hours in their main job. The working week of one in ten Akava members, and of one in five who are managers and senior officials, was longer than 48 hours.

Akava members did more overtime than the average for all employees, and often without compensation. The weekly overtime hours of one in five Akava members added up to one working day, i.e. 7.4 hours. 7% of these received no compensation for the overtime. 15% of Akava members were compensated for the overtime in the form of money or free time.

The working hours of senior employees are monitored less often than those of other employees. A total of 35% reported that their working hours were not monitored in any way.

Senior employees experience more mental stress as a result of their job than other employee groups. 43% of senior employees experience rather a lot or a lot of mental stress as a result of their job. One in two experiences time pressure in the job fairly often or very often.

Manual workers are more familiar with health and safety issues and the health and safety organisation than other employees. 24% of senior employees are not sufficiently familiar with health and safety documents and 27% believe there is room for improvement in the operations of the health and safety organisation. 35% also state that supervisors are not active enough when it comes to health and safety.

15

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A Glance at Akava 2012

Experience of mental stress

16

Source: Finnish Institute of Occupational Health 2009

Experience of time pressure

24

21

33

25

15

6

8

10

6

3

30

29

43

31

18

0 10 20 30 40 50 60

AllSocio-economic groups

EntrepreneurUpper-level employeesLower-level employees

Manual workers%

Rather a lot A lot

27

34

30

27

24

19

19

22

21

15

46

53

52

48

39

0 10 20 30 40 50 60

AllSocio-economic groups

EntrepreneurUpper-level employeesLower-level employees

Manual workers%

Fairly often Very often

Page 17: A glance at Akava

A Glance at Akava 2012

Overtime hours/week

7,4

8,1

6,6

7,3

7,9

6,5

7,3

7,6

5,9

8,9

6

8

5

8

7

4

3

6

1

0

14

13

14

14

15

11

13

14

14

12

1

1

1

1

1

1

0

1

0

0

21

21

20

23

23

16

16

21

16

13

0 5 10 15 20 25 30

Men

Women

StatePrivate

Municipality

Upper-level employeesLower-level employees

Manual workers%

Without compensation With compensation Both

Overtime work in 2010

17

Wage and salary earners working full time; overtime compensation in money or free timeSource: Statistics Finland, Labour Force Statistics 2010

Akava members

Employer

All wage and salary earners

Socio-economic groups

Page 18: A glance at Akava

A Glance at Akava 2012

Estimated number of persons who worked at least 48 hours/week,

1,000 persons

100

22

14

7

3

14

4

9

4

1

5

2

10

11

13

9

13

13

7

19

10

10

8

8

0 5 10 15 20

All wage and salary earners

All

Men

Women

State

Private

Municipality

Legislators, senior officials and managers

Teaching professionals

Others

Professionals

Technicians and associate professionals%

Persons who worked at least 48 hours/week, 2010

18

Wage and salary earners in full-time workSource: Statistics Finland, Labour Force Statistics 2010

Akava members:

Employer:

Position in organisation:

Page 19: A glance at Akava

A Glance at Akava 2012

Salaries

Akava members earned EUR 4,050 a month on average, with women earning EUR 3,600 and men earning EUR 4,520 a month in 2010. Women earn 80% of what men earn.

The average monthly salary of all employees was EUR 3,090 in 2010.

50% of Akava members earned EUR 3,590 or more a month, with one in ten earning less than EUR 2,420 and one in ten earning more than EUR 5,930 a month.

The average starting salary of an Akava member is EUR 3,270 a month, increasing to EUR 4,490 towards the end of the working career.

Private sector middle management and corresponding experts in Finland do badly in European salary comparisons. Their gross salary is 84% of the salary of people in corresponding positions in western Europe. The corresponding comparison figure for employees other than manual workers (i.e. for approx. an average Finn) is 92%.

The high price level and steep tax progression in Finland weaken the purchasing power of the salary of middle management and those who carry out corresponding expert tasks to 71% compared with western European countries. The corresponding comparison figure is 78% for employees other than manual workers.

19

Page 20: A glance at Akava

A Glance at Akava 2012

1 400 1 900 2 400 2 900 3 400 3 900 4 400 4 900 5 400 5 900

M

Distribution of total earnings(without bonuses)

20

Total earnings in 2010

Wage and salary earners working full time; total earnings in table include bonuses*) From the beginning of 2010 the university sector is included in the private sector (private enterprises)Source: Statistics Finland, Structure of Earnings, 2010

Akava members

All wage and salaryearners in Finland

F102,420

F905,930

F101,940

F904,500

All wage and salaryAkava members earners in Finland

mean, EUR/month mean, EUR/month

Employer sector:State 4,230 3,420Municipality 3,670 2,790Private enterprises 4,270 3,180Men 4,520 3,420Women 3,600 2,800

All 4,050 3,090

Page 21: A glance at Akava

A Glance at Akava 2012

Total earnings of wage and salary earners by level of education in 2010, EUR/month

21

Wage and salary earners working full time; total earnings include bonusesSource: Statistics Finland, Structure of earnings, 2010

Number of persons in wage

and salary statistics (1,000)

1,386

172

585

221

196

191

21

3,090

2,590

2,650

3,140

3,310

4,340

5,200

0 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 4 500 5 000 5 500 6 000

Total

Primary&lower secondary education

Upper secondary education

Lowest level tertiary education

Lower-degree level tertiary education

Higher-degree level tertiary education

Doctorate

EUR/month

Page 22: A glance at Akava

A Glance at Akava 2012

Gross earnings per year in private sector 2011Western Europe = 100

22

182130

121121117

107104

1009592

8888

837574

6656

0 50 100 150 200

SwitzerlandDenmark

NorwayLuxembourg

GermanyBelgiumAustria

Western EuropeNetherlands

FinlandSweden

IrelandFrance

ItalySpain

United KingdomPortugal

Western Europe = 100

Clerical/Technicians 1)

162122

116110106103102101100

9695

8885848380

690 50 100 150 200

SwitzerlandLuxemburg

GermanyDenmark

NorwayBelgium

NetherlandsAustria

Western EuropeItaly

IrelandFrance

SwedenFinland

SpainUnited Kingdom

Portugal

Western Europe = 100

Middle management andprofessionals 2)

1) Comparable to Finnish employees with salaries of approx. 2,950 EUR/month; Grade 8 = Graduate/Administrator in Global job value framework of Watson Wyatt2) Comparable to Finnish employees with salaries of approx. 5,290 EUR/month. Grade 14 = Middle Managers Source: 2011/2012 WWDS Global 50 Remuneration Planning Report

Page 23: A glance at Akava

A Glance at Akava 2012

Relative purchasing power of salaries in private sector 2011 Western Europe = 100

23

1) Comparable to Finnish employees with salaries of approx. 2,950 EUR/month; Grade 8 = Graduate/Administrator in Global job value framework of Watson Wyatt2) Comparable to Finnish employees with salaries of approx. 5,290 EUR/month. Grade 14 = Middle Managers Source: 2011/2012 WWDS Global 50 Remuneration Planning Report

154151

122113

104103101100

9592

88888585

787170

0 50 100 150 200

SwitzerlandLuxembourg

GermanyIreland

BelgiumNetherlands

AustriaWestern EuropeUnited Kingdom

DenmarkNorwayFranceSpain

SwedenFinland

ItalyPortugal

Western Europe = 100

Clerical/Technicians 1)

147146

1271071041031011009997

928585

797878

710 50 100 150 200

SwitzerlandLuxemburg

GermanyIreland

United KingdomNetherlands

FranceWestern Europe

AustriaSpain

BelgiumItaly

PortugalNorwaySweden

DenmarkFinland

Western Europe = 100

Middle managers andprofessionals 2)

Page 24: A glance at Akava

A Glance at Akava 2012

Taxation of employees

The Government is supporting the framework agreement reached for the labour market through reduced taxation for employees in 2012. The net salary of an employee covered by the contractual pay increases and changes in taxation who is earning EUR 3,000 per month will rise by 2.8%, or EUR 60, in 2012. The net salary of someone earning EUR 4,000 will rise by 2.7%, or EUR 71.

One in five full-time employees in Finland is an Akava member. These employees earn a quarter of Finland’s entire wages and salaries bill, and pay one third of taxes and social security contributions paid by employees. Akava members account for 42% of state income taxes paid by employees.

The income tax rate of someone with a monthly salary of EUR 3,000 is 29%, while an income of EUR 4,000 is subject to 34% income tax.

Finnish employees have high and progressive marginal tax rates. The marginal tax rate indicates what proportion of additional income is collected as tax. At a salary of EUR 2,100, nearly 45% of additional income is collected as tax. The marginal tax rate is close to 50% for a monthly salary of EUR 3,400, and almost 57% when the salary exceeds EUR 6,100.

In international comparison, the high and progressive marginal tax rates are evident in the fact that while low-income employees in Finland are taxed moderately by European standards and employees with average salaries are taxed near the European average, those who earn more than average are taxed quite harshly.

24

Page 25: A glance at Akava

A Glance at Akava 2012

25

Pay and taxes: Akava members and other wage and salary earners

Employees who have worked at least 6 months full time with income over 12,302 EUR per yearSource: Statistics Finland, Income Distribution Statistics 2009

19

26

32

42

28

26

81

74

68

58

72

74

0 10 20 30 40 50 60 70 80 90 100

Wage and salary earners (1,7 million)

Wage and salaries bill (62,0 billion EUR)

Taxes and payments (15,4 billion EUR)

By type of tax:

State income taxes (4,0 billion EUR)

Municipal tax (9,5 billion EUR)

Pension and unemployment insurance contributions(2,9 billion EUR)

%

Akava members Other wage and salary earners

Page 26: A glance at Akava

A Glance at Akava 2012

22.2

29.8

36.3

45.7

24.8 29.6

34.3

41.9

141618202224262830323436384042444648505254

141618202224262830323436384042444648505254

20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 110,000 120,000

%

Income per year 2011, EUR

Average personal income tax for single wage and salary earners in Finland and in other Western European countries in 2011, %

26

*) Netherlands, Belgium, Spain, United Kingdom, Italy, Austria, Norway, France, Sweden, Germany, Switzerland and Denmark. Excluding Estonia. One-person household.Source: Taxpayers’ Association of Finland, International Wage Tax Survey 2011

Finland

Other WesternEuropeancountries*)

Page 27: A glance at Akava

A Glance at Akava 2012

Average personal income tax rate in 2011 for incomeof 4,720 EUR/month

27

One-person household with income of 59,000 EUR per yearSource: Taxpayers’ Association of Finland, International Wage Tax Survey 2011

46,7

42,6

40,2

38,5

38,2

36,3

36,1

33,8

32,6

29,5

28,6

27,8

27,0

23,1

0 5 10 15 20 25 30 35 40 45 50

Belgium

Germany

Italy

Austria

Denmark

Finland

Holland

France

Sweden

Spain

Norway

United Kingdom

USA

Estonia%

Page 28: A glance at Akava

A Glance at Akava 2012

Education

In Finland, the proportion of people aged 25-64 with tertiary-level education has increased by 23 percentage points in 35 years. However, one in five remain with no educational qualification beyond compulsory education.

39% of Finns aged 25-34 have completed a lower or higher degree in tertiary education. This ranks Finland near the middle among OECD countries.

The number of students in relation to teachers in universities has risen by around 70% in the period 1985-2009.

61% of university students and 59% of polytechnic students worked in 2009. The average duration of studies is 6.2 years in universities and 4 years in polytechnics. Nearly half of Akava members state that they need training to maintain occupational skills. 31% of employees with a high-level education attended non-degree training in 2011. For 4%,

the training was not work- or occupation-related. Every tenth employee with a high-level education participated in work-related training either

entirely or mostly during their own time. Responses of Akava members to questions regarding occupational skills and self-development:

90% feel that employers should place more emphasis on maintaining and developing employees’ occupational skills.

14% feel that being busy at work does not present any problem whatsoever when it comes to renewing occupational skills.

30% are of the opinion that no suitable continuing education is available. 10% feel that their competence is outdated and no longer meets the requirements of working life.

28

Page 29: A glance at Akava

A Glance at Akava 2012

Persons with higher-degree level education in Finland and in some other countries in 2009

29

In addition to university and polytechnic degrees, higher-degree level tertiary education also includes somelowest level tertiary education qualifications, such as technicians and diplomas in Business and AdministrationSource: OECD, Education at a Glance 2011

25–64 years of age 25–34 years of age 55–64 years of age

4441

37373736363534333333

303029

2726

2419

1515

130 20 40

JapanUSA

FinlandEnglandNorwayEstoniaIreland

SwitzerlandDenmarkBelgiumSwedenHollandOECDSpain

FranceEU21

GermanyGreeceAustria

PortugalItaly

Turkey%

564847

4545

434242

41404039

383737

3429

2623

2120

170 20 40

JapanIreland

NorwayEngland

DenmarkFrance

BelgiumSweden

USAHolland

SchwitzerlandFinland

SpainOECD

EstoniaEU21

GreeceGermanyPortugal

AustriaItaly

Turkey%

4133

292928272727272625

2322

2020

18171615

1010

70 20 40

USAEstoniaFinland

EnglandSchwitzerland

HollandJapan

NorwaySweden

DenmarkGermanyBelgium

OECDIreland

EU21France

SpainAustriaGreece

ItalyTurkey

Portugal%

Page 30: A glance at Akava

A Glance at Akava 2012

5

51

26

8

8

1

1

11

11

13

46

18

0 10 20 30 40 50 60

Akava members

Total labour force

%

Akava members and total labour force in 2010by educational level, %

30

DoctorateHighest level academic degrees of licentiate and

doctorate (scientific post-graduate degrees)

Primary & lower secondary education

Upper secondary educationGives general eligibility for tertiary education

Lowest level tertiary educationVocational college education. Examples of vocational college

qualifications include Technician Engineer, Diploma in Businessand Administration and Diploma in Nursing

Lower-degree level tertiary educationMainly polytechnic degrees and lower university degrees

Higher-degree level tertiary educationMainly higher university degrees (master’s level),

specialist’s degrees in medicine, graduate engineers

Source: Statistics Finland, Labour Force Statistics 2010

Page 31: A glance at Akava

A Glance at Akava 2012

Entrepreneurship

About 24,000 Akava members, or 6% of the membership, are entrepreneurs and self-employed persons on a full-time or part-time basis. Over one third of these are women.

Around half of Akava’s entrepreneurs operate in the field of social welfare and health care.

62% of Akava’s entrepreneurs are full-time and 38% are part-time self-employed persons and entrepreneurs.

Independent work and fulfilling one’s dreams are motivating factors in entrepreneurship.

The greatest obstacles to entrepreneurship have to do with financial livelihood.

Entrepreneurship is seen as a natural step in career progression or as a way of becoming employed.

Akava’s self-employed and entrepreneur members are more satisfied with their work than members who are employees.

The key challenges faced by highly educated entrepreneurs are the differences in the social security benefits between employees and entrepreneurs, for example in unemployment security and sickness security, and reconciling work and family life.

31

Page 32: A glance at Akava

A Glance at Akava 2012

Akava’s entrepreneurial/self-employed members, 2011

32

Among Akava’s membership there are approx. 24,000 full- or part-time entrepreneurs and self-employed persons.

Source: Akava’s affiliates

Medical doctors in all

specialisations44 %

Social services and health

care9 %

Social sciences

27 %

Technology and natural sciences

16 %

Agriculture, forestry and environment

4 %

Page 33: A glance at Akava

A Glance at Akava 2012

Union membership

Akava members are highly educated, and mainly join a union that corresponds with their qualifications or occupation.

Akava has 35 affiliated unions, and at the beginning of April in 2012 there were altogether 573,400 members. The number of members is growing. The aim is to have 600,000 members by 2015.

University and polytechnic students can join their respective Akava unions while they are still studying. Akava’s affiliates have 107,400 student members.

Akava members are of the opinion that union membership brings general security in life. Private-sector employees value the earnings-related unemployment security, while public-sector employees value pay security and employment protection.

Members are of the opinion that Akava’s success in representing its members’ interests has improved. Nearly half of Akava’s members are of the opinion that Akava has succeeded well or very well. Four years earlier, one in four felt this way.

33

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A Glance at Akava 2012

Number of Akava members

34

Source: Akava’s affiliates

42

162

265

375

573600

0

100

200

300

400

500

600

1970 1980 1990 2000 1.4.2012 Aim 2015

1,000 members

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A Glance at Akava 2012

05101520253035404550556065707580

05

101520253035404550556065707580

1970 1975 1980 1985 1990 1995 2000 2005 2010

% SAK; 1 040 000 STTK+TVK STTK; 615 000 Akava; 553 000

35

Membership of each of the three main employee confederations as apercentage of all wage and salary earners in Finland, 1970–2011

Source: Employee confederations’ cost distribution

Page 36: A glance at Akava

A Glance at Akava 2012

36

Number of student members in Akava

Source: Akava’s affiliates

49,000

64,100

91,200

107,400

0

10 000

20 000

30 000

40 000

50 000

60 000

70 000

80 000

90 000

100 000

110 000

1996 2000 2005 1.4.2012

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A Glance at Akava 2012

37

Reasons for membership in an Akava member organisation, %

Source: Akava Member Opinion Poll 2011

17

28

36

39

51

34

42

34

73

61

49

34

21

30

20

11

0 10 20 30 40 50 60 70 80 90 100

Pay related benefits in case of unemployment

Security in pay and employment conditions

Membership provides general security

Well-educated should stick together

Services and allowances for members

At present it is customary to be a member

Professional development

Professional activities in the organisation%

Of some significance Very important

Page 38: A glance at Akava

A Glance at Akava 2012

Akava’s organisation for negotiations

38

Akava

Akava’s Public SectorNegotiation Commission

JUKO

The Delegation of Professionaland Managerial Employees

YTN

Organisations’ collectiveagreements

Employersand government

Office for Government as EmployerCommission for Local Authority

EmployersChurch

Confederation of Finnish IndustriesEK and its affiliates

Central organisationagreements

Tripartite agreementsCoordination

CollectiveAgreements

(public sector)

Entrepreneurs andself-employed persons

Parliament, Ministries, Local AuthoritiesInfluencing

legislation

Employer organisations

CollectiveAgreements

CollectiveAgreements

Employees in Technical andBasic Service Professions KTN

Commission for LocalAuthority EmployersCollective

Agreements(public sector)

Page 39: A glance at Akava

A Glance at Akava 2012

Akava’s affiliates 1.4.2012 and number of members 1.1.2012

Trade Union of Education in Finland 118,967 Finnish Psychological Association 6,274

The Finnish Association of Graduate Engineers TEK 73,491 Finnish Association of Academic Agronomists 5,917

Union of Professional Engineers in Finland UIL 68,984 The Officers Union 5,895SEFE - The Finnish Association of Business School Graduates 48,562 The Union of Church Professionals within Akava AKI 5,783Union of Professional Business Graduates in Finland TRAL 28,377 Finnish Union of Environmental Professionals 4,518

Akava Special Branches 26,589The Institute Officers Union of the Finnish Defence Forces and the Border Guard 4,435

Sales and Marketing Professionals SMKJ 26,212 Union of Swedish-speaking Engineers in Finland 3,337

Finnish Medical Association 23,694 Society of Finnish Professional Foresters 2,619

Union of Professional Social Workers 22,226 The Finnish Association of Architects 2,589

Association of Finnish Lawyers 15,516 Finnish Veterinary Association 2,339

Social Science Professionals 11,347 Union of Finnish University Professors 2,334

Union of Technical Professionals, KTK 9,726 The Union of Diaconal Workers in Finland 1,976

Managers and Specialists in the Private Sector YTY 8,687 The Finnish Association of Occupational Health Nurses 1,834

Finnish Pharmacists' Association 8,647 Union of Finnish Speech Therapists 1,378

Finnish Union of Experts in Science 7,590 Health Science Academic Leaders and Experts 1,075

Finnish Union of Public Health Nurses 7,204 Kirkon Nuorisotyöntekijöiden Liitto KNT 1,053

Finnish Dental Association 6,810 AKAVA's General Group 812

Finnish Union of University Researchers and Teachers 6,608 Total 573,405

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A Glance at Akava 2012

Statistical information on Akava members 2011-2012

40

Number of Akava members 1.4.2012 573,405 Proportion of women 52 %

Main occupation: Average age 42 yearsFull-time work 85 % Age distribution 2012:

Part-time work 7 % under 30 9 %

Unemployed 4 % 30–39 29 %

Entrepreneur 4 % 40–49 28 %

Employer 1.1.2011: 50–59 25 %

Private enterprise 56 % over 60 9 %

Municipality 33 % Lower tertiary or a higher level qualification 82 %

State 7 % Living in Helsinki Metropolitan Area 32 %

Self-employed professionals 3 % Members in full-time work:

Church 1 % Fixed term work 12 %

Position in organisation: Average years in service in current employment 9Professionals 34 % Average gross income 2010, EUR/month 4,100Teaching professionals 24 % Average working hours/week 40.6Legislators, senior officials and managers 21 % Persons working overtime 21 %

Technical and associate professionals 16 % Persons working over 48 hours/week 11 %

Others 6 % Persons working overtime without compensation 35 %

Sources: Statistics Finland, Labour force statistics; Akava's affiliates