Government budget session decisions support the achievement of the employment target

18.9.2020

Photo: Lauri Heikkinen, Prime minister´s office

During its term, the Government will take employment measures that will bolster the economy with the aim of achieving an employment-generating impact amounting to 80,000 new jobs.

More personalised services and faster employment of jobseekers

In order to support job search and direct the unemployed to the appropriate services, the need for services will be assessed better and support for employment services will be increased. As part of this, unemployed jobseekers will meet a caseworker from the TE Office every two weeks at the beginning of their job search. After that, each six-month period of unemployment will be followed by an intense service period of one month. To this end, the resources of the TE Offices will be increased by EUR 70 million.

Since the beginning of 2017, the TE Offices have interviewed unemployed jobseekers every three months. In the future, interviews would be held every two weeks during the first three months of unemployment. The unemployed have been satisfied with the interviews because they set a rhythm for the job search and provide them with personal service.

The reform is intended to take effect at the beginning of 2022.

More clarity and moderation to jobseeker obligations and sanctions

Under the current system, an unemployed jobseeker must apply for jobs offered by the TE Office as a condition for receiving the unemployment benefit. Under the reform, the jobseeker and the TE Office will agree on the quantitative job search obligation and appropriate support services in the individual employment plan. The jobseeker is expected to apply for 0–4 jobs per month depending on the labour market situation in the region and the jobseeker’s work ability.

At the same time, the system of sanctions will become more reasonable. Sanctions on unemployment benefit that relate to job search and services will be staggered by introducing a warning. The maximum duration of benefit sanctions related to other issues besides job search and services may be up to 45 days in the future, compared to 90 days currently.

The changes are intended to take effect in 2022 at the earliest.

The use of pay subsidies to boost employment will be increased significantly

The reform of the pay subsidy system aims to increase its use in companies and to make its use easier for employers.

The provisions on pay subsidies will be simplified by setting the level of subsidy to 50%, irrespective of the length of unemployment. The pay subsidy rate for people with partial work ability will be raised to 70% and their pay subsidy periods will, in particular, be closely linked to other employment services. The pay subsidy rate for organisations will remain at 100%.

The reform is intended to come into force on 1 September 2021.

More suitable services and employment opportunities in the intermediate labour market for people with partial work ability

The Government has agreed on measures to build a Finnish model for employment in the intermediate labour market. There are many ways to implement this and the options will become clearer as preparations proceed. The aim is to provide subsidised employment, education or other support for the transition towards the open labour market.

The job bank experiment is expected to start in 2022 at the latest.

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Minister of Employment Haatainen: Government budget session decisions support the achievement of the employment target (tem.fi) (press release 18.9.2020)