Local govts to pilot employment projects

The local government will pilot a project from 1 March 2021 to 30 June 2023 with the view to increase the effectiveness of employment services by integrating central and local government resources, skills, and services.

The president approved the Act on municipal experiments to promote employment (Laki työllisyyden edistämisen kuntakokeilusta) on Wednesday, said a government press release.

During the pilots, certain tasks of the employment offices (TE offices) will be transferred to local governments.

A total of 25 areas and 118 municipalities will participate in the pilot projects.

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 pilots will integrate employment, education, social, and health services more closely together. Many unemployed jobseekers need multi-sectoral services and comprehensive personal support. With the help of the local government pilots, such services can be offered more extensively and to more people,” said Minister of Employment Tuula Haatainen.

Instead of a strict service model, municipalities can develop services based on the needs of jobseekers and employers in their area.

The participating municipalities will arrange pilot projects to test different ways of providing employment services and to identify best practices for renewing service structures. The present government will decide on a permanent structure for employment services during its term.

During the local government pilots on employment, municipalities will take responsibility for around 230,000 TE office customers accounting for 36% of all TE office customers. Of all unemployed jobseekers, 50% will transfer from TE services to the pilots.

Unemployed jobseekers, persons in work placement, and persons participating in employment-promoting services who are not entitled to earnings-related unemployment allowance will be transferred to the pilot projects in their areas.

In addition, all jobseekers under the age of 30 and all immigrants and foreign language-speakers who are either unemployed, in work placement, or in employment-promoting services will be transferred to the pilots. The respective pilot area will be based on the person’s municipality of residence.