TE services reform 2024: Progress made in the establishment of employment areas

Municipalities or municipal co-management areas have submitted their notifications concerning the establishment of employment areas to the Ministry of Economic Affairs and Employment.

The responsibility for organising public employment services will be transferred from the state’s employment and economic development offices to municipalities and municipal co-management areas on 1 January 2025.  For this purpose, municipalities have had to notify the Ministry of Economic Affairs and Employment of how they intend to organise employment services.

The Ministry of Economic Affairs and Employment has received a total of 38 notifications and 7 applications for exemptions from municipalities concerning the organisation of employment services. In addition, five municipalities did not notify the Ministry that they would organise the services themselves or participate in a municipal co-management area.

In the documents sent to the Ministry of Economic Affairs and Employment, municipalities or municipal co-management areas describe their plans and agreements related to the organisation of employment services when the services are transferred to municipalities on 1 January 2025.
 

Notifications and applications will be processed during November

The Ministry of Economic Affairs and Employment and the Ministry of Finance will process the notifications and applications for exemptions during November. The employment areas that can proceed as planned will be known at the end of November. In addition, it will be known for which areas a procedure based on a Government decision to form an employment area will be applied. The procedure will be initiated if a municipality or a municipal co-management area that has submitted a notification or an application for exemption does not meet the criteria for the responsibility for organising services laid down in the Act. If the procedure is initiated, the relevant municipalities will be consulted on the proposal to form an employment area.

The Government will make decisions on the employment areas by February 2024.

Measures to promote employment continue

The aim of the TE services reform 2024 is to organise tailored services that meet local needs closer to individual and business customers. After the reform, one organiser will be responsible for employment, municipal education and business development services. This supports the objective of faster employment. The reform is part of the Government’s package of employment measures.

Inquiries

Jenni Wessman, Senior Specialist, Ministry of Economic Affairs and Employment, tel. +358 295 047 034, [email protected]
Veera Svahn, Special Adviser to Minister of Employment, Ministry of Economic Affairs and Employment, tel. +358 295 047 321