VantaaJobs and skills in the local economy
GSIP - Growth and Social investment Pacts for Local Companies in City of Vantaa
"I’m really glad that we had all the main stakeholders involved in project planning-phase and they will be also part of the project implementation phase: two local universities of applied sciences, two research institutes, major companies, chamber of commerce and different units in the city organization. We have a wicked problem in our hands and it takes all stakeholders to solve it. UIA funding is very competed. Now we have reached it one can say we are truly an innovative city in Europe.”
Low-skilled workplaces and under-educated workforce cause holistic risks to local economy. Companies which mostly have low- or outdated skilled workforce are more likely to face risks on their competitiveness. Specially it’s also crucial to improve companies’ capabilities for both digital transformation and intelligent automation. However, if companies make the move towards intelligent automation, the several low-skill jobs will be lost anyway. The most vulnerable are workers without education.
This scenario is the most relevant for the city of Vantaa, where the problem is high amount of low-skill jobs. There are 32 % people in labour market in Vantaa without education after comprehensive school. This is 7,5 %-points higher than in the other five big cities in Finland. In local public economy, low-educated are risk in longterm – even if they are currently at work. Finnis Business and Policy Forum EVA has calculated in 2015 that people with only basic education will work
- 7 years less
- face 1,4 year more on unemployment and
- 6,4 years more out of employment and
- get 23 % less salary than people with secondary level education.
The rate of low-skilled workplaces in Vantaa is also high: There are 16,5 % this kind of workplaces, which is 4,8 % higher than among the reference cities. The recent economic growth in Vantaa seems to concentrate also on low-skilled jobs: big logistic sector and some IT companies which still need workforce for routine and manual tasks.
At the same time, the unemployment rate is getting lower in Finland. More and more people have got a job in the resent years. The unemployment rate in the city of Vantaa is 8,1 % (11 / 2018), when the level was 9,7 % year before. In the current situation it is more difficult for unemployed people to find a job, especially if one doesn’t have education of any kind.
It is reasonable to argue that the economic growth will be diluted by stagnation of labour markets and mismatches of workforce demands. Low-education workforce is the most un-resilient for changes which will be generated by digital transformation.
The GSIP – Vantaa project improves local companies’ growth in general and especially competences towards intelligent automation and digital transformation. At the same context, the project improves low-educated employees’ and unemployed persons’ capabilities for life-long learning and further education and lowers their future unemployment risks. An innovative core is to create a service model with encouraging incentives for companies.
The GSIPs are tailored for local companies which have enough employees, approximately more than 40. Primary targets are companies in human intensive and routinely operated industrial sectors and those IT-companies which have workforce of outdated skills caused by rapid changes in technologies and future business. According to GSIP-model to help companies’ growth and competitiveness, it is required that companies invest also in social purposes. Secondary targets are therefore employees and unemployed persons with low-education or outdated or un-resilient working skills. Both primary and secondary target groups will be carefully targeted and selected with help of statistical and field analyses for reaching the best result.
Development process starts from design and testing of three thematic GSIPs in five authentic companies. After design and testing, three thematic GSIPs will be piloted in 60 companies. The aim is to apply the framework of field experiments for implementing GSIPs with robust data on programs effectiveness.
After piloting, GSIPs will be automated with the help of bid data and intelligent solutions. There will be altogether three various GSIP-models developed in the project: one for requirements, one for competence growth and one for automation.
If succeed, GSIPs are
- the future tools for cities for improving companies’ growth
- for better match of skills needs and supply
- for creating new jobs, and
- for improving social inclusion of the labour markets.
GSIP Vantaa project will demonstrate that duplex actions in growth and social pillars implemented at company levels are more effective than actions in separate policy silos.
At the same time, if succeed, GSIPs are good demonstration for systemic changes and reforms for upper levels, national and the EU.
- Municipality of Vantaa
- Metropolia University of Applied Sciences - higher education and research institute
- Laurea University of Applied Sciences - higher education and research institute
- Etla - The Research Institute of the Finnish Economy - higher education and research institute
- Labour Institute for Economic Research - higher education and research institute
- Helsinki Region Chamber of Commerce - business network
- ISS Services Ltd - private company
- Infocare Ltd. - private company
- Solteq Plc. - private company
- Finnair Cargo Ltd. - private company
- Vantti Ltd. - public company
By using and following GSIP models in the future, city of Vantaa will reach economically and socially sustainable growth of 10% improvements (estimated in reference group of big cities in Finland) in added value of companies, new jobs and better match with supply and demand of workforce. The ultimate target is to decrease the level of low-educated workforce and reach the same level which other 5 big cities in Finland currently have.
Delivery partner companies together with educational organizations and other partners will create step-by-step thematical GSIPs. 60 local companies will use them in the piloting phase. Creating and piloting GSIPs in different phases will provide 200 new jobs for unemployed persons and 30 apprenticeships. Training and coaching to enhance growth will be arranged for 350 people. To reach social pillar objectives, also 350 people will improve their skills and receive guidance to vocational education.
January 2019: GSIP Project Hackathon meeting with all project stakeholders. Concrete co-work starts with 10 stakeholders.
March 2020: The first GSIP model has been designed with 5 companies and piloted in 20 companies and results are analyzed. The GSIP1 model is called “need for skilled workforce”.
December 2020: The second GSIP model is ready and analyzed. The GSIP2 model is called “updating skills for employees”.
June 2021: Three bigger publications will be ready. All publications are in digital format only.
- One publication is a meta-analysis of different training / education models mainly in the Europe. This publication serves both incentive modelling for GSIPs and discussion of needs for reforms of adult education systems in Finland.
- One publication is for field experiences and narrative from the project pilot cases.
- One publication is open for demonstrated needs from the project work.
September 2021: Automated GSIP system is ready to open use.