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Minister of Employment: Decisions of the government budget session strengthen employment and integration

Ministry of Economic Affairs and Employment
Publication date 1.9.2022 14.05 | Published in English on 5.9.2022 at 15.56
Press release

The measures taken in the administrative branch of the Ministry of Economic Affairs and Employment will support socially, economically and ecologically sustainable economic growth. Combating climate change, utilising all available labour input and boosting productivity growth are key objectives in the administrative branch.

The appropriation for the administrative branch of the Ministry of Economic Affairs and Employment for 2023 totals EUR 3.7 billion, which is slightly more than this year. In connection with the implementation of the EU’s Recovery and Resilience Plan, a total of EUR 51 million in budget authority will be allocated to the administrative branch of the Ministry of Economic Affairs and Employment.

Decisions to support employment and successful integration

Employment policy aims at lowering unemployment, providing rapid access to work and accelerating growth by responding to companies’ labour and competence needs and creating preconditions for new business.

An appropriation of EUR 183 million will be reserved for public employment and business services. Employment management will focus on providing individual services and bringing them closer to job seekers and companies.

“We will ensure the effectiveness of the Nordic labour market service model introduced this year. It will guarantee job seekers more personalised support for their job search and employment,” says Minister of Employment Tuula Haatainen

The Government is also preparing the transfer of employment and economic development services (TE services) to municipalities. The reform aims to create a service structure that will contribute to rapid employment of jobseekers and increase the productivity, availability, effectiveness and diversity of employment and business services. Transferring the responsibility for employment, municipal education and business services to one organiser promotes the objective of faster employment. The services will become more customer-oriented as they will be provided locally by municipalities.

The reform of digital job search services will continue. The Job Market Finland was introduced in May 2022 and the updated information system services will be fully adopted by the end of 2023.

Integration services for those fleeing the war in Ukraine will be secured

Those granted temporary protection may be granted a municipality of residence in spring 2023 after they have resided in Finland for one year. At that point, the role of municipalities and other authorities in organising the services will increase. For that reason, the organisation of services promoting the integration of persons fleeing the war in Ukraine will be secured. The central government could pay compensation to municipalities and wellbeing services counties for organising services for those receiving temporary protection who have a municipality of residence. The costs would be reimbursed on the same grounds as for the services provided to beneficiaries of international protection, for example. Around EUR 122 million would be reserved for such reimbursements and EUR 1.9 million (25 person-years) for the personnel resources of the Centres for Economic Development, Transport and the Environment (ELY Centres). 

“It is important that we ensure the continuity of services for those who have fled the war in Ukraine while the duration of the war remains unclear. We must help the people to get started with everyday life in Finland. As the responsibility of municipalities and wellbeing services counties increases, we will ensure they have sufficient resources in organising the necessary services,” Haatainen says. 

Integration and employment services for migrants in Finland will also be developed. Identification of prior learning, guidance and other services that promote the integration and employment of migrants require sufficient resources. For this reason, EUR 3.5 million will be allocated to make sure that the activities of the low-threshold multidisciplinary centres of expertise in municipalities and the guidance and counselling services for migrants can continue. 

Employment assistance to those 55 years or older to support longer working careers

Altogether EUR 59 million will be allocated for promoting employment and extending working careers among those who are 55 years of age or older. From 2023, training to prepare for protection in the event of restructuring will be introduced, together with employment support for those aged 55 or over. 

Työkanava Ltd expands to eastern Finland

In June, the Ministry of Economic Affairs and Employment appointed a working group of State Secretaries to examine how Russia’s attack on Ukraine has affected the economy of eastern Finland and what measures are needed to strengthen the region’s vitality.

The labour market participation of people with partial work capacity will be facilitated by expanding the operations of Työkanava Ltd, which started its operations this year, into eastern Finland. The company’s capitalisation will be increased by EUR 5 million in 2023 to improve the matching of jobs with workers, and thereby respond to companies’ workforce needs.

More effective merger control to prevent harmful market concentration and higher consumer prices 

The resources of the Finnish Competition and Consumer Authority will be increased by EUR 0.3 million, and the notification thresholds for mergers will be reviewed. The amendment will prevent harmful market concentration and rise in consumer prices.

Iiris Niinikoski, Special Adviser to the Minister of Employment, tel. +358 50 301 7372 (media contacts for the Minister)
Mikko Heinikoski, Special Adviser to the Minister of Employment, tel. +358 29 504 7175 (budget)
Jukka Nummikoski, Director, Ministry of Economic Affairs and Employment, tel. +358 295 504 7333


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