Support to the unemployed to starting up business activities and for regional mobility

Ministry of Economic Affairs and Employment 19.9.2017 11.40
Press release
Support to the unemployed to starting up business activities and for regional mobility

The Government proposes to the Parliament that the Unemployment Security Act should be amended to allow the unemployed to start up business and still receive unemployment benefits for four months while already engaged in business operations.

– Our aim is to lower the threshold for entrepreneurship and encourage the unemployed to starting up business activities. The unemployment security system should support the opportunities of the unemployed to find work, either as employees or entrepreneurs, Minister of Labour Jari Lindström says.

At present an unemployed person who starts an entrepreneurial activity that last for more than two weeks is no longer eligible for unemployment benefits, which means that the amendment would make it much easier to engage in entrepreneurial activities. Income from such activities would be taken into account in the amount of the unemployment benefits to be paid.

Support to moving where the jobs are

The Government proposal amending the Unemployment Security Act would also extend the scope of the mobility allowance.

The regional mobility of the unemployed would be supported by extending mobility allowance to part-time employment, with the average working hours less than 18 hours a week. If the other conditions are met, mobility allowance could also be paid if work-related training is required for starting in a new job. Mobility allowance could be higher on the grounds of guardianship obligations and exceptionally long distances.

– The amendments aim for better matching of work and employees on the labour market. People are encouraged to moving to find jobs, thus also improving the company’s access to labour, Minister Lindström says.

The Government proposal is related to the 2018 budget proposal and will be discussed in that context. The Government aim is that the new act will enter into force on 1 January 2018.

Inquiries:
Juha Halttunen, Special Adviser to the Minister of Employment, tel. +358 50 5740 236
Timo Meling, Senior Specialist, Legal Affairs, tel. +358 29 50 49084