Local government pilots on employment will begin on 1 March 2021

16.12.2020

As stated in Prime Minister Marin’s Government Programme, the role of local governments as organiser of employment services will be strengthened. Parliament adopted the Act on municipal experiments to promote employment (Laki työllisyyden edistämisen kuntakokeilusta) on 15 December 2020.

The first measure is to launch local government pilots on employment, in which municipalities are partly responsible for the provision of employment and economic services (TE services) in their area. The local government pilots on employment will begin on 1 March 2021 and end on 30 June 2023. A total of 25 areas and 118 municipalities will participate in the pilot projects.

Customers who will transfer to pilot projects

Unemployed jobseekers and jobseekers covered by employment services who are not entitled to earnings-related unemployment allowance will transfer to the pilot projects in the areas. The target group also includes all jobseekers under the age of 30 and all immigrants and foreign-language speakers who are either unemployed or covered by employment services in the TE Offices in the pilot areas.

The municipality is responsible for providing public employment and business services (TE services) to these customer groups. TE Offices will inform the jobseekers in question that their municipality will be responsible for providing TE services to them in the future.

TE Offices will continue to provide employer and business services in the pilot areas, but they will cooperate closely with the municipalities in the coordination of employer services.

Aims of the pilot project

The pilots aim to increase employment among unemployed jobseekers and to direct them to training and education more effectively. Another objective is to create new solutions to ensure availability of skilled labour. The purpose of the pilots is to improve access to the labour market especially for the long-term unemployed and those in a more vulnerable position in the labour market.

The pilots involve developing services and service models for jobseekers that support employment and allow service advisors to identify and address customers’ individual service needs, barriers to employment and skills development needs.

The State and the municipalities have a strong common interest in promoting employment and the aim is to combine their resources. The pilots aim to provide information on the effectiveness of combining State and local government funding, expertise and customer service. Continuous statistical monitoring and impact assessments will be used to monitor the pilots.

Further information