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Nordic models supporting people with specific work ability

Henry Saarinen
Picture created with Adobe Firefly (AI).

Various models have been developed in the Nordic countries to support the labour market participation of people with specific work ability. Although there are differences, all of the Nordic countries share an objective of finding flexible solutions that benefit both the individual and society. Let’s look at some of the practices in Norway, Denmark, and Sweden. There are differences in the definitions of specific and partial work ability between the Nordic countries. For more on the difficulties in defining these concepts, see our blog on people with specific work ability.

Norway – IA Agreement

The Inkluderende Arbeidsliv (IA) Agreement, first signed back in 2001, has been Norway’s key instrument for supporting people with specific work ability. The agreement is signed by the Norwegian Government and the main labour market partners, including employer and employee organisations. The original main objectives of the agreement are to

  • reduce sick leave;
  • increase employment rates of partially disabled people; and to
  • extend the working lives of older workers.

Although the IA Agreement is ambitious, results have been mixed. The most positive impact has been on extending the working lives of older people. By contrast, there has been no significant improvement in the employment rate of the partially disabled. Nor did the agreement achieve the desired change in the situation of young people with specific work ability. Partly for this reason, Norway launched the Inkluderingsdugnaden Programme, including the IPS UNG Programme. The programme targets young people under 30 years of age with moderate to severe mental health and/or substance abuse problems, including those with reduced work or functional capacity. The aim is to increase the number of these young people completing training or apprenticeships and help them to move into paid employment.

Interestingly, however, the IA Agreement has improved workplace adjustments. By 2017, as many as 53% of workers with specific work ability reported that their jobs had been adapted to suit their abilities. This is about 10 percentage points more than before.

There has also been a positive change in attitudes. As many as 60% of employers admit that not hiring people with specific work ability is a waste of potential. Unfortunately, however, this has not translated into sufficient practical action, with only 17% of employers setting concrete targets for hiring people with partial work ability.

Norway has not rested on its laurels, but has just renewed its IA Agreement. The new agreement for 2025–2028 includes more concrete targets and measures based on past experiences.

The new agreement aims to reduce sick leaves by 10% by 2028 compared to 2024 levels. For people with specific work ability, the target is ambitious: raising the employment rate by 5 percentage points by 2028, which would represent a historically significant step forward.

Of particular interest in the new agreement is the stronger role of occupational health services and a clearer emphasis on the obligation of employers to adapt working conditions. There is also a greater emphasis on monitoring and reporting, perhaps learning from previous agreements that it is not enough just to agree, but results must be monitored systematically.

Denmark – Fleksjob opens doors to work

Denmark’s Fleksjob scheme has won international praise as an innovative approach to employing people with specific work ability. The scheme is based on a simple but ingenious idea: tasks and working hours can be tailored to match an individual’s remaining working ability.

In the Fleksjob model, the employer pays wages only for the actual work done by the employee, and the state supplements the income with a special subsidy. In this way, the individual with specific work ability receives a decent income and the employer’s risk is significantly reduced.

The scheme has proven to work because it provides a permanent solution for people with reduced working capacity. Unlike many temporary support schemes, Fleksjob allows people to work on a long-term basis according to their own capabilities.

The Fleksjob model represents a way of thinking that focuses on a person’s remaining working ability rather than their disability. This positive approach has helped many to stay in the labour market, improving their quality of life and reducing the need for social security spending. Here in Finland, too, the approach should move more towards an emphasis on capabilities, away from constraints.

Before granting a Fleksjob, the municipality must ensure that all other employment possibilities, such as adjustments to working conditions or relocation, have been explored. A Fleksjob will only be considered when these other means are not sufficient. The scheme is intended for people who have a significant and permanent reduction in their ability to work due to illness or injury but who are not entitled to a full invalidity pension. Fleksjob is also available to self-employed individuals. In this case, the municipality will assess how the work can be adapted and what kind of support the self-employed individual needs to continue their activities.

Sweden – Samhall’s special status and varied support

In Sweden, a wide range of tools have been developed to support the employment of people with specific work ability. Arbetsförmedlingen (Swedish Public Employment Service) offers tailor-made services, such as job coaching and training, to help people with specific work ability to find their place in the labour market.

Particular attention should be paid to the lönebidrag wage subsidy, which compensates the employer for part of the wage costs. The level of the allowance depends on the worker’s incapacity for work and can cover up to 80% of their salary. This significantly lowers the threshold for hiring a person with specific work ability.

A special feature of Sweden is Samhall, a state-owned company that specialises in employing people with specific work ability. Samhall operates on a commercial principle, but its main aim is to provide work for people who find it difficult to find employment in the regular labour market. The Finnish equivalent of Samhall was Työkanava Oy, which was closed down before it even became properly operational.

The Samhall model has attracted international attention because it combines employment, work coaching, and training. Samhall also offers its workers the opportunity to develop their skills and later move into the open labour market. This makes the model a particularly effective springboard for those who need more support than usual to find their place in the world of work.

However, it should be noted that Sweden’s Samhall has also been criticised. According to critical assessments, Samhall’s business objectives have begun to overtake its original social mission. Concerns have also been raised that Samhall does not always take into account the constraints of its employees, leading to overly demanding tasks and undermining their well-being. This has led to calls for a reassessment of the company’s operations and even its closure.

In conclusion

Lessons from these countries show that improving employment outcomes for people with specific work ability requires perseverance, tailored solutions, and a genuine willingness to see people’s potential rather than their limitations. The Nordic models show that labour inclusion is not only a social issue, but also economically sound policy, where everyone wins when the potential of those with specific work ability is unlocked.

It would be interesting to see a study evaluating the applicability of the Nordic models used in the Finnish service system – or a comparison between Finnish and other Nordic support models. It would be particularly useful to analyse which good practices could work in Finland and what structural or legislative changes would be needed to introduce them. Such a study would help to identify concrete solutions for improving the employment of people with specific work ability in the Finnish context, and to compare how the systems in different countries work in relation to each other.

Do you have a project or study in the pipeline that will promote the employment of people with specific work ability? Find out more about The Ami Foundation’s project and research funding and get in touch!

Sources

We are interested in funding development projects and research that focus on The Ami Foundation’s programme priorities (https://ami.fi/en/our-work/grants/).