Frequently asked questions about the reform of digital TE services
The laws concerning the reform entered into force on 23 May 2022.
The aim of the reform of digital TE services is to provide jobseekers and employers with digital services that will meet their needs far better than before and make the services more user friendly. As part of the overall reform, a new service platform will be created that will improve the matching of jobs with employees and will enhance job search and employment services.
The new digital TE services will gradually replace the digital services for customers and specialists and the customer information system used by TE Offices (te-palvelut.fi). From now on, the services for personal customers, businesses and specialists will be available on the Job Market service platform. Various information services will also be transferred to Job Market.
The reform will also clarify and update the regulation on the processing of customer data in public employment and business services.
Job Market Finland is a new, joint, open and free employment service and meeting place for jobseekers, employers, employment agencies and authorities.
The new Job Market platform will replace the digital TE services for customers and specialists and the TE Offices’ customer information system. Job Market will be introduced in stages. The national te-palvelut.fi website is no longer available after 2 May 2022, and its content and e-services are transferred to the Job Market platform.
The new information system services of the TE Administration will be entirely functional by the end of 2023.
Jobseeking today requires efficient and modern digital services. The functions and technology provided for jobseekers and employers by the former digital TE services were outdated and do not meet customers’ varied service needs in the best way.
The TE Offices’ current customer information system (URA system) will reach the end of its useful life at the end of 2023 and the system will be replaced with a new customer information system.
The laws concerning the reform entered into force on 23 May 2022. The new digital services will be introduced in stages.
- Job Market Finland was launched in May 2022.
- The updated information system services will be fully implemented by the end of 2023.
Initially, the reform will be visible as a change in online services as electronic services and data content are transferred to the Job Market. Customers of TE services (te-palvelut.fi website) have been directed to use Job market from 2 May 2022. The Job Market enables jobseekers to create and publish a job search profile, which helps both jobseekers and employers to find each other better than before.
The key parts of the reform will be completed at the end of 2023, when the new customer relationship management system (Specialists’ Job Market Finland) will be made available to the officials at the TE Offices and local government pilots on employment.
Most jobseekers (about 84% in 2019 and about 91% in 2020) currently start their job search through the digital service. E-services are also used extensively for taking care of other matters.
The Job Market platform will be one way of accessing public employment services. The new digital services are intended to be easier to use than the services before and to make e-services more user friendly. In addition to e-services, customers will still be able to visit TE Offices and local government pilots, or contact the TE Office’s telephone services.
A new feature allows jobseekers to create and publish a job applicant profile. Job searches can be carried out anonymously, which means the data does not provide information on the person’s name, age, gender or ethnic background. This type of anonymous application is expected, at least in some situations, to increase equality among jobseekers.
The profiles of both jobseekers and jobs are based on competence-based information. Artificial intelligence will enable available jobs and available employees to find each other more easily and quickly than before. For example, employers will receive suggestions on potential jobseekers based on job applicant profiles.
Publishing a job applicant profile on Job Market is one way in which a jobseeker can demonstrate they have been actively applying for jobs, which is a requirement of the Nordic labour market service model.
The Job Market service platform is open and free of charge for all businesses. The introduction of Job Market is expected to streamline employers’ recruitment processes and promote the availability of skilled labour.
Job Market’s matching and search function may make recruitment easier, especially in jobs for which it is difficult to find suitable employees. A corresponding search function has not been available before.
The search function may also increase direct recruitment in businesses, as businesses registered on the service platform will be able to search for available employees from the job applicant profiles without posting the job. Direct recruitment can lower businesses’ recruitment expenses that arise from the preparation of a job posting and processing of the applications and due to a shorter recruitment period.
Jobseekers are able to create a personal job applicant profile on Job Market. Employers seeking employees can, on the other hand, search for employees who are suitable for job vacancy from the jobseeker profiles published on Job Market. Job Market has a feature that improves matching between job applicant profiles and job postings, which utilises the profiling referred to in the General Data Protection Regulation (GDPR).
The matching feature compiles a list of job vacancy postings for the jobseeker in order of the most suitable jobs based on the information on education, skills and job requirements provided in the job applicant profile. The employer is shown the job applicant profiles on the platform in the order determined by the information provided by the employer.
The matching feature do not prevent jobseekers from seeing any job postings on the platform, as it arranges the job postings in an order that is based on the job applicant’s information entered in the profile. This creates a personalised list of the available job vacancies or job applicant profiles that best suit the job posting.
Use of the matching function will not result in legal consequences for the creator of the job applicant profile, and the creator of the profile is under no obligation to apply for the jobs recommended by the matching feature.
Job Market is a new service for jobseekers and employers that will help support the introduction of the Nordic labour market service model. Publishing a job applicant profile on Job Market is one way in which a jobseeker can demonstrate they have been actively applying for jobs, which is a requirement of the Nordic labour market service model.
At the moment, electronic services are widely used in TE services, for example when customers register as jobseekers. Due to the development of the Job Market Finland in the coming years, the offering of digital services will increase and their customer orientation will improve.
However, not all customers of TE services are able or willing to use digital services. Customers can still use the services of the TE Office or the offices of the local government pilots on employment in person, or use national guidance services. Guidance services provide help to individual customers, employers, entrepreneurs and those interested in entrepreneurship by telephone and chat.
The reform will improve the integration of information systems that support jobseeking, matching technology and direct recruitment.
Mechanism of impact 1: System integration. Combining the information systems and views that are used by the TE-Office advisors and personal customers will make communication easier and improve telephone advisory services in particular. The service process will become smoother and advisory services and processing times related to basic matters will speed up. This may have the indirect effect of enabling the advisor to focus more on the actual jobseeking and questions related to supporting this due to the fact that the customer and adviser are using technical platforms that look similar. Regarding unemployed jobseekers, there is potential to reduce the duration of unemployment. This aspect of the impact focuses primarily on the service provided to personal customers.
Mechanism of impact 2: Improvement of matching technology. Job Market’s AI-based search functions improve the technology associated with employment services and matching. This impact is divided between 1) more efficient filling of job vacancies and recruitment, and 2) direct recruitment. These are separate mechanisms, because the filling of job vacancies and reduction in the duration of the recruitment period mean increased employment of people in available jobs and direct recruitment without public posting of a job means better matching of supply and demand.
Mechanism of impact 3: Direct recruitment. The change resulting from the improvement in employment service technology may be able to speed up the recruitment process, which in itself will slightly increase employment. By viewing profiles, employers considering recruitment will gain market information on the suitability of potential applicants for the planned recruitment. The alternative recruitment process, which includes the posting of a job vacancy, providing additional information, processing of applications, interviews and possible work trials, is labour intensive and time-consuming. Lack of time, in particular, may have an impact on how much direct recruitment, which uses applicant profiles and is based on contacting applicants, without posting a job vacancy is carried out. This will also be affected by the market situation and the tightness of the labour market.
Based on calculations made by the Ministry of Economic Affairs and Employment, the impacts on employment of the reform of the digital TE services are related to the improvement in matching in public employment services in particular. The increase in the efficiency of matching may be related to a reduction in the time that job vacancies remain unfilled or a reduction in the duration of the employer’s entire recruitment process. This means more extensive take-up of potential employment in unfilled jobs and an increase in the use of direct recruitment without a job vacancy in public employment.
The reform’s key mechanism of impact is related to Job Market’s new AI-based matching function, which accelerates and streamlines personal customers’ search for suitable job opportunities and employers’ search for suitable jobseekers.
Potential employment (= number of unfilled job vacancies x their duration) could have been increased by some 200–1,200 people in 2019 by the matching function, and slightly fewer in 2020. According to estimates by the Ministry of Economic Affairs and Employment, the impact on employment can be considered substantial, because the impact of technology on the matching is permanent and cumulative (for example, 10-year cumulative impact on employment is 2000-12,000 people). However, the estimates of the impact on employment are subject to a number of uncertainties, which means that the calculations above must be regarded as indicative. The impact on general government finances has been estimated on the basis of 700 additional people employed.
When completed, the reform of the digital TE services will not increase central government expenditure. However, funding is required for the development of the entire system. The main parts of the TE services digitalisation project (TE-Digi project) will be completed by the end of 2023, but system development and updating will continue after this.
In total, the update of the information system and development and implementation of the new service platform is estimated to cost approximately EUR 98.7 million over the years 2016–2023.
Job Market has been developed through extensive cooperation with users and partners. Co-creation takes place interactively in meetings, online workspaces and by utilising feedback received.