Summary of the measures proposed by the sub-groups on employment promotion

The measures to be proposed by the sub-groups will cover seven themes: local government trials on boosting employment, pay subsidy reform, individual support for job seeking, implementation of the working capacity programme, matching skills and labour market needs, labour migration and integration, labour law and local collective bargaining.

The Ministerial Working Group on Promoting Employment and its sub-groups will continue to prepare the measures. In addition, ministries are preparing proposals to promote employment.

In the government spending limits discussion on 7 April 2020, the Government will conduct a mid-term evaluation of the impact of the sub-groups’ proposals and the employment measures decided in autumn 2019.

The sub-groups’ proposals, together with actions in other policy sectors, aim to ensure that decision-based measures corresponding to 30,000 new people in employment can be identified in the autumn 2020 budget session.

Local government trials on boosting employment

The purpose of the trials is to improve access to employment and provide education and training related guidance especially to those who have been unemployed for a longer period, and those in a vulnerable position in the labour market. The trials also seek to find new solutions to the shortage of skilled labour.

The trials involve developing services and service models that support employment and that allow service advisors to identify and address customers’ individual service needs, barriers to employment, and skills and work capacity development needs. Coordination of central and local government resources will be required to implement the trials.

In the regions participating in the trials, jobseekers and immigrants aged under 30 who are either unemployed or covered by employment services will take part in the trials. The target group also includes unemployed jobseekers and jobseekers covered by employment services who are not entitled to earnings-related allowance.

In spring 2020, the Government will submit to Parliament a proposal to launch local government trials on boosting employment.

Ministry in charge: Ministry of Economic Affairs and Employment

Pay subsidy reform

Steps will be taken to reform the system of pay subsidies and to significantly increase its use by companies. Swift measures will be taken to increase the use of pay subsidies and to conduct an overall reform of the pay subsidy system.

The overall reform aims to simplify and speed up the pay subsidy process and to reduce employer bureaucracy. The identification of skills needs, upskilling and other services will be more closely linked to the pay subsidy scheme.

Government proposal on the overall pay subsidy reform will be submitted to Parliament in autumn 2020. Changes would take effect in early 2021.

Ministry in charge: Ministry of Economic Affairs and Employment

Individual support for job seeking

A reform affecting the service process for jobseekers and the effects on unemployment benefit will be carried out to ensure that after registration as a jobseeker, access to services that meet each jobseekers’ needs will be readily available, and effective job search can begin as soon as possible. In this model, services and the obligation to seek employment will be based on individual employment plans.

The Government proposal is to be submitted in autumn 2020. Changes would take effect in early 2021.

Ministry in charge: Ministry of Economic Affairs and Employment

Working capacity programme for persons with partial working capacity

The working capacity programme will include measures to identify the individual’s working capacity and measures to guide jobseekers with partial working capacity to the support services they need. In the government budget session, EUR 33 million was earmarked for the implementation of the working capacity programme for 2020 –2022.

A trial will be launched in spring 2020 during which a working capacity services concept will be created for the future health and social services centre, and a programme in which persons with partial working capacity will be employed under a condition to be included in public procurement contracts. 

TE Offices will recruit more work capacity coordinators to improve the services available.

Ministry in charge: Ministry of Social Affairs and Health, Ministry of Economic Affairs and Employment

Labour market mismatch

Measures will be prepared that will allow earlier and better identification of jobseekers’ skills and competences and related needs, as well as barriers to employment. Guidance on access to education and training, employment and services will also be developed, taking into account the individual needs of jobseekers. The Ministry of Economic Affairs and Employment will acquire a digital skills assessment tool for the specialists working in the employment administration and their customers.

A national model for gathering skills and competence related foresight information and employers’ needs will be devised. Foresight information will be used for purposes such as identifying relevant themes for training.

Ministry in charge: Ministry of Economic Affairs and Employment, Ministry of Education and Culture

Labour migration and integration

Efforts to promote labour migration include pursuing the cross-administrative Talent Boost programme, which aims to bring Finland to a new level in terms of its attractiveness to international talent and their families.

Trials will be launched to develop a model for international recruitment and to support the entrepreneurship of immigrants. The immigration process for international students will be streamlined.

An action plan addressing the need to reform integration measures   will be drawn up to promote the integration and employment of immigrants. The action plan will be submitted as a government report to Parliament by the end of 2020. In addition, the activities of municipal centres of expertise will be improved and expanded, as will the guidance and advisory services for immigrants.

Ministry in charge: Ministry of Economic Affairs and Employment, Ministry of Education and Culture

Local collective bargaining and labour law

Proposals related to local collective bargaining will be submitted to the Government for its spending limits discussion in spring 2020.

Changes to labour law required by the Government Programme on issues such as zero-hours contracts, platform economy, the employment status of self-employed people, and underpayment are being prepared.

Ministry in charge: Ministry of Economic Affairs and Employment