2. The continuous learning system

To assess the readiness of the Finnish continuous learning system to respond to ongoing changes in the labour market, it is essential to understand the key features of the system. Therefore, this chapter sketches out the basic features of the current system, how it is governed and financed. It also provides a brief overview of the structure of adult learning provision. Finland has a long history of adult learning and a highly developed continuous learning system. Adults can access a wide range of learning opportunities at all skill levels. There is little distinction between youth and adult learners and both groups typically learn alongside each other. Public or quasi-public actors play a strong role in the regulation, funding and delivery of continuous learning.

    

Introduction

Along with other countries, Finland needs to strengthen the responsiveness of its continuous learning system to the ongoing changes in the labour market brought about by the megatrends of population ageing, technological change and globalisation.

It benefits from a long tradition of adult education, the origins of which reach back to the 19^th century, and an adult learning system that has successfully adapted to changing demands over time. In the 1990s, for example, adult education was subject to major reforms, driven by the need to modernise the system and the introduction of a more market-oriented approach to education (OECD, 2001[1]). Various acts setting out the legal framework for adult education stem from this time. Further large reforms were implemented in 2009 in the context of the global economic and financial crisis, which expanded education services and aimed to improve the focus on disadvantaged groups (Desjardins, 2017[27]).

After some years of more limited attention to the topic, Finnish governments have recently refocused on continuous learning in the context of the challenges outlined in Chapter 1. The 2019 government programme, for example, makes frequent mention of the topic and has announced a comprehensive parliamentary reform of continuous learning to be developed in tripartite cooperation (Finnish Government, 2019[7]).

This chapter provides key background information on the current governance, financing and structure of adult learning provision in Finland. It aims to contextualise the main challenges regarding future-ready and inclusive adult learning provision that are subsequently identified in Chapters 3 and 4.

Governance

The responsibility for continuous learning is shared within and across ministries...

As in many countries, the responsibility for the development of a continuous learning policy is shared within and across government ministries. Most of the continuous learning system is under the responsibility of the Ministry of Education and Culture (MoEC) and spread across different departments. The Department for General Upper Secondary Education and Vocational Education and Training is responsible for adult general and vocational education. The Department for Higher Education and Science Policy is responsible for adult higher education. Finally, the Department for Early Childhood Education, Comprehensive School Education and Liberal Adult Education covers adult liberal education. The responsibilities of the Ministry of Economic Affairs and Employment (MoEE) include vocational labour market training (not leading to a qualification) and integration training.

Coordination between ministries primarily takes place in the form of working groups, set up by either Ministry. For example, in 2019, a working group on developing continuous learning developed a description of the models and principles for continuous learning and proposed key levers for further development (Ministry of Education and Culture, 2019[28]). The group included members of the MoEC and MoEE, the Ministry of Finance, the Ministry of Social Affairs and Health, alongside social partner and civil society organisations. At the political level, coordination takes places through the Employment, Education and Economic Affairs Council, which is composed of members of the MoEC, MoEE, Ministry of Interior (MoI), Ministry of Social Affairs and Health (MoSAH), Ministry of Finance (MoF) and the Social Partners.

A number of other agencies and expert bodies support the work of the MoEC. The Finnish National Agency for Education (Opetushallitus/ Utbildningsstyrelsen) assists the Ministry by developing education and training, including through educational standards, core curricula and qualification requirements. It also hosts the National Skill Anticipation Forum (Osaamisen ennakointifoorumi) for the anticipation of skill needs. Evaluating the operations of education providers is the responsibility of the Finnish Education Evaluation Centre (Kansallinen koulutuksen arviointikeskus/ Nationella centret för utbildningsutvärdering).

Implementing agencies of the MoEE are the Centres for Economic Development, Transport and the Environment (elinkeino-, liikenne ja ympäristökeskus, ELY centres/ Närings-, trafik- och miljöcentralen, NTM-centralerna), which themselves supervise the activities of the Employment and Economic Development offices (TE-toimisto/ TE-palvelut), the Finnish public employment services.

…as well as with municipalities and learning providers

At the regional level, 311 municipalities have substantial responsibilities for skill development policy, covering early childhood education and care, basic and general upper secondary education, and Adult Liberal Education. Their responsibilities encompass funding allocation, staff recruitment, as well as curriculum design and implementation.

Education and training providers have a high degree of autonomy in the Finnish education system (Desjardins, 2017[27]). Continuous learning providers are predominately public or quasi-public education institutions. There is only a very limited presence of private education and training companies. Where they exist, they typically serve employers for the purpose of staff training (e.g. ICT or languages), rather than individuals themselves. One of the reasons for this is that most adult education is provided free of charge or at a very low cost to the individual (see below). This makes it more challenging for private providers to break into the market.

Non-state actors have a limited role in the Finnish adult learning system. Social partners and civil society organisations, such as the Finnish Adult Education Association, typically have a consultative role in the policy-making process. For example, a number of social partner organisations have recently been involved in the aforementioned working group on developing continuous learning.

The current system lacks an overarching strategy

At the point of writing, Finland lacks an overarching strategy on the development of continuous learning, which brings together the work of these different actors. While Finland has a tradition of five-year Education and Research Development Plans_, no such plan was in place between 2012 and 2019 (Ministry of Education and Culture, 2008[29]; Ministry of Education and Culture, 2012[30]). These plans used to be a key reference document for Finnish education and research policy, including concrete actions and targets for the implementation of the government programme.

The current government is reconnecting with this tradition and is in the process of developing an education policy report, which is due to be submitted to parliament by the end of 2020. Additionally, it is in the process of developing a comprehensive strategy on continuous learning in working life through a parliamentary reform process, which involves all parliamentary parties, social partners and education providers (Finnish Government, 2019[7]).

Financing

Direct costs of participation are low for individuals…

Given the dispersed responsibilities for adult learning, it has traditionally been difficult to assess the total amount of funding available for adult learning in Finland. In 2018, the Finnish innovation fund SITRA published a full costing exercise of the Finnish life-long learning system. It estimated that EUR 18.9 billion (8.4% of GDP) was spent on life-long learning from early childhood to adult education in 2017 (Aho and Ranki, 2018[31]). According to the authors, approximately one quarter of this amount represented spending on adult education, which excluded the costs of adults learning in the formal initial education system. This may be an underestimate, given that adults also take part in the regular education system such as vocational or higher education (see below).

The direct costs of education and training, i.e. the costs of running a programme are shared between employers, individuals and the government:

• A large share of the cost is borne by private employers, who pay EUR 1-1.5 billion per year for training costs depending on the estimate (Aho and Ranki, 2018[31]; Kauhanen, 2018[32]). In addition, public employers pay around EUR 174 million on training.

• It is estimated that individuals pay around EUR 500 million for course-related costs in upper secondary, vocational and adult education, such as for materials and tools and – in the case of some types of adult education – enrolment and participation fees. It is important to note, that some of these costs relate to those in initial education and that these numbers are rough estimates, which should be treated with caution (Aho and Ranki, 2018[31]).

• Government spending in the sub-sectors most often used by adults (vocational, higher and liberal adult education, as well as labour market training) was estimated to be just under EUR 5 billion per year. As adults over the age of 25 constitute more than half of all learners in these sub-sectors, it can be assumed that government spending on adult education and training is at least EUR 2.5 billion per year.

Figure 2.1. Government is key funder of adult learning

Estimated funding for adult learning provision, 2017

Note: All data are estimates, *includes funds relating to initial education.

Source: OECD estimates based on Aho and Ranki (2018[31]), Milla Rahalla?, Sitra, Helsinki and Kauhanen (2018[32]), Yksilön, yrityksen ja yhteiskunnan vastuu työuranaikaisessa kouluttautumisessa, No 67, ETLA Muistio, Helsinki, https://pub.etla.fi/ETLA-Muistio-Brief-67.pdf.

…and a wide range of financial support is available

Living costs of adults in education and training, i.e. indirect costs of learning, are either covered by employers through the continued payment of wages or through allowances and study support. The funding to support living costs amounts to approximately EUR 1 billion per year (Aho and Ranki, 2018[31]; Employment Fund, 2019[33]; Kela, 2019[34]):

• Wages: When adults take part in training organised by their employer, they typically continue to receive their regular salaries. SITRA estimates that employers pay around EUR 691 million in wages during training participation. This amount is composed of EUR 34 million paid to public sector staff in central government, EUR 157 million paid to public sector staff in municipalities and an estimated EUR 500 million paid by private employers.

• Adult Education Allowance: Adults who take up un-paid educational leave of 2 to 15 months, have an employment history of at least 8 years and an income of EUR 250 per month or less are eligible for support through the Adult Education Allowance. The allowance has a basic and an income related component. The minimum amount paid is EUR 592.11 per month, yet on average individuals receive EUR 1 460 per month. The amount received is subject to tax. In 2017, the Employment Fund paid EUR 188 million in Adult Education Allowance. While the full allowance is reserved for full-time study, adults can access an Adjusted Adult Education Allowance for part-time study. A reform of the Adult Education Allowance is ongoing, which aims to increase flexibility and take-up amongst disadvantaged groups. Legal changes are expected to come into effect in 2020.

• Scholarship for qualified employees: Employees with at least 5 years of employment history can receive a EUR 400 scholarship upon completion of a vocational upper secondary qualification, a further qualification or a specialist qualification. In 2017, the Employment Fund paid EUR 9.9 million for these scholarships.

• Financial aid for students: Individuals can receive financial aid from the Finnish Social Insurance Institution KELA to participate in formal education below the lower secondary level (including adult basic education). Individuals are eligible for a study grant, a government-guaranteed student loan and a housing allowance (under some circumstances). These benefits are paid in addition to other benefits received. Individuals receive an average of EUR 385 per month. In 2017, a total of EUR 606.6 million was paid. As 29% of individuals receiving aid are aged 25 or above, it can be estimated that adult learners received about EUR 175.914 million from KELA.

• Social Assistance for unemployed in training amounts to EUR 91 million per year (2016).

Yet, investment may be lagging behind the other Nordic countries

While the SITRA report provides a good overview of the funding situation in Finland, internationally comparable data on the financing of adult learning is extremely limited, making it difficult to benchmark Finnish investment against other countries. The most relevant data are about one decade old (FiBS/DIE, 2013[35]), are based on rough estimates, and should be treated as indicative of actual spending levels at best. It shows that, amongst the countries analysed, spending levels on adult learning are the highest in the Nordic countries, which spend between 1.7 and 2.2% of GDP on adult learning (Figure 3.2). This is about 20% of all spending on education in these countries (FiBS/DIE, 2013[35]). Among the Nordic countries, Finland was estimated as having somewhat lower investment in adult learning, with the smallest contribution of individuals to the financing and a stronger involvement of the PES.

Figure 2.2. Investment in adult learning is high by international comparison

Expenditures for adult learning as a % of GDP, persons ages 25 and over, 2009

Note: Data includes spending on higher education for adults aged 25 years and older; without private spending on higher education; no data on higher education for SVN; different reference years for CAN (2008), CHE (2007), DEU (2008/2010), GBR (2008), NDL (2010), SVN (2011).

Source: FiBS/DIE (2013[35]), Developing the Adult Learning Sector. Annex to the final report, http://lll.mon.bg/uploaded_files/financingannex_en.pdf.

Data on investment in specific sub-sectors of the adult learning system are easier to obtain (Figure 3.3). Evidence from the OECD Labour Market Policy database suggests that Finland strongly invests in training via active labour market policies with 0.44% of GDP spent on training-related ALMPs in 2017, only surpassed by Denmark (0.52%) in the OECD area. Norway and Sweden record much lower investment through these channels, around the OECD average 0.12%.

Figure 2.3. Public investment is high, while company investment is lagging behind

Share of GDP invested in training-related ALMPs (2017) and share of training of all company investments (2017), %

Note: Company investment in training expressed as share of total investment made.

Source: A. OECD LMP database, B. EIB Investment survey.

As described above, employers bear much of the cost of adult learning in Finland. However, by international standards, investment of employers lags behind. Data from the Continuing Vocational Training Survey (CVTS) highlight that the vast majority of Finnish companies (83%) with more than 10 employees fully or partly finance education and training measures of their employees. This share is slightly lower than in other Nordic countries (DNK: 87%, NOR: 99%, SWE: 93%). Evidence from the EIB Investment Survey also shows that the relative share of investment by companies in training is below EU average. While around 8% of all firm investments in Finland are in training, this share is 9% across the EU and highest in Luxembourg (22%), France (14%), Portugal and Sweden (both 13%) (Figure 2.3). Together, this evidence suggests that companies in Finland may be taking on a smaller share of the overall burden of spending on adult training than in some other countries.

Structure of provision

This section provides a brief overview of the adult learning system in Finland. Further detailed information about different kinds of learning provision can be found in Chapter 3.

Adults and young people learn alongside each other…

The Finnish adult learning system encompasses a wide range of formal and non-formal learning opportunities at different levels, including basic and general education, vocational education, higher education, adult liberal education and staff training (employee training organised by employers). With the exception of basic and general education, there is little distinction between adult and youth education and both groups learn alongside each other at the same educational institutions. Table 3.1 provides an overview of the range of formal and non-formal adult learning provision available in Finland (see Chapter 3 for further detail).

It should be noted that there is some degree of overlap between different types of provision. Staff training, for example, makes use of other public provision, namely formal and non-formal vocational training and in-service training provided by higher education institutions.

Table 2.1. Types of formal and non-formal adult learning provision in Finland
Basic and general education	Vocational education	Higher education	Adult liberal education	Staff training
Basic education qualification Basic education subject studies General upper secondary qualification General upper secondary generation subject studies	Initial vocational qualification Further vocational qualifications Specialist vocational qualifications Non-formal VET/ short courses Labour market training	Bachelor’s degree Master’s degree Open Studies Professional specialisation studies In-service training	Non-formal learning activities	Courses commissioned by employers Joint-purchase training
Source: Own elaboration, basic outline following Desjardins (2017[27]).

...and learning typically takes place in public or government-dependent education institutions

The vast majority of adult learning provision in Finland is delivered by public education institutions or government-dependent private institutions, such as specialised vocational institutions owned by enterprises. Independent private education providers play a limited role. Table 3.2 below summarises the type of education providers involved in the delivery of formal and non-formal learning opportunities in Finland.

Table 2.2. Types of education providers involved in the delivery of adult learning in Finland
Basic and general education	Vocational education	Higher education	Adult liberal education	Staff training
Upper secondary schools for adults General upper secondary schools Vocational schools Folk high schools Adult education centres	Vocational institutions For labour market training also: Universities Universities of Applied Sciences Adult Education Centres Folk High Schools Private providers	Universities Universities of Applied Sciences	Adult Education Centres Folk High Schools Summer universities Study centres Vocational institutions	Vocational schools Universities Universities of Applied Sciences Adult Education Centres Folk High Schools Summer universities Study centres Private providers
Source: Own elaboration, basic outline following Desjardins (2017[27]).

The distinction between formal and non-formal learning opportunities can be blurred

It can be difficult to distinguish between formal and non-formal learning opportunities in the Finnish context, as non-formal learning opportunities constitute the building blocks for gaining a formal qualification. Adults taking (non-formal) learning modules as open university studies, for example, can get them recognised towards a formal qualification when they register as degree students. Different from open university systems in many other OECD countries, Open University Studies in Finland are run by individual higher education institutions. Typically, Open University Studies encompass the same courses and modules that are also offered through degree studies at Universities and UAS.

For the same reason, lines between job-related and liberal education are blurred. Participation in Open University courses may be considered Adult Liberal Education, or popular education, when taken for recreational purposes. Given the role of Open University credentials in obtaining formal higher qualifications in Finland, they are here considered part of the higher education system.

References

[7] Aho, M. and S. Ranki (2018), Milla Rahalla?, Sitra, Helsinki, http://www.sitra.fi.

[9] Employment Fund (2019), Benefits for adult students, Employment Fund webpage, https://www.tyollisyysrahasto.fi/en/benefits-for-adult-students/ (accessed on 22 July 2019).

[11] FiBS/DIE (2013), Developing the adult learning sector. Annex to the final report, FiBS/DIE, Berlin, http://lll.mon.bg/uploaded_files/financingannex_en.pdf (accessed on 30 July 2019).

[3] Finnish Government (2019), Inclusive and competent Finland - a socially, economically and ecologically sustainable society, Publication of the Finnish Government, Helsinki, http://julkaisut.valtioneuvosto.fi/bitstream/handle/10024/161664/Inclusive%20and%20competent%20Finland_2019.pdf?sequence=7&isAllowed=y (accessed on 8 July 2019).

[8] Kauhanen, A. (2018), “Yksilön, yrityksen ja yhteiskunnan vastuu työuranaikaisessa kouluttautumisessa [The responsibility of the individual, company and society for continuous learning in working life]”, No. 67, ETLA Muistio, Helsinki, https://pub.etla.fi/ETLA-Muistio-Brief-67.pdf.

[10] Kela (2019), Quick guide to financial aid for students - kela.fi, Kela webpage, https://www.kela.fi/web/en/students-quick-guide (accessed on 22 July 2019).

[4] Ministry of Education and Culture (2019), “Jatkuvan oppimisen kehittäminen - työryhmän väliraportti [Developing continuous learning - working party report]”, Ministry of Education and Culture, Helsinki.

[6] Ministry of Education and Culture (2012), Education and Research 2011–2016. A development plan, Ministry of Education and Culture, Helsinki, http://ncee.org/wp-content/uploads/2017/01/Fin-non-AV-5-Finnish-Ministry-of-Education-and-Culture-Education-and-Research-development-plan-2011-2016.pdf (accessed on 25 April 2019).

[5] Ministry of Education and Culture (2008), Education and research 2007-2012. Development Plan., Ministry of Education and Culture, Helsinki, http://julkaisut.valtioneuvosto.fi/bitstream/handle/10024/79103/opm11.pdf?sequence=1&isAllowed=y (accessed on 25 April 2019).

[1] OECD (2001), Thematic Review on Adult Learning. Finland. Country note., OECD, Paris, https://www.oecd.org/education/skills-beyond-school/2541579.pdf (accessed on 8 May 2019).

[2] Richard Desjardins (ed.) (2017), Political Economy of Adult Learning Systems, Bloomsbury Academic, London, New York.