TE services reform 2024

#TEservices2024

In its mid-term policy review in spring 2021, the Government of Prime Minister Sanna Marin decided that employment and economic development services (TE services) would be transferred to municipalities. The policy is related to the Government Programme’s employment objective and the increase in municipal responsibility for employment services. TE services are set to be transferred to municipalities during 2024.

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.

Why will TE services transfer to municipalities?

The transfer of TE services to municipalities brings them closer to customers. Transferring the responsibility for employment, municipal education and business services to one organiser promotes the objective of faster employment. Municipalities are in a good position to offer targeted and tailored services that meet the needs of customers and local labour markets.

In connection with the transfer, a funding model will be created for municipalities to develop their employment promotion activities in order to increase employment by 7,000–10,000 people.

The reform will take into account equal access to services. It will also safeguard linguistic rights and services for those in a weaker labour market position.

In addition to the transfer of TE services, the Government is also preparing a number of other reforms to improve the services of jobseekers and promote employment. These include the Nordic labour market service model and the reform of digital TE services. A combination of these reforms will create a positive employment impact.

Read more about the Government’s employment reforms under the current projects of the Ministry of Economic Affairs and Employment 

Timetable for the transfer of TE services

he government proposal on the transfer of TE services is scheduled to be submitted to Parliament in September 2022. The responsibility for providing services would be transferred to municipalities during 2024.

Issues to be resolved in the preparation:

  1. Elements of incentive funding
    • Bringing forward the financial responsibility of municipalities for unemployment security.
    • Activation of the unemployed would not affect the financial responsibility for unemployment security.
    • Municipalities and the State would share responsibility for the costs associated with the financing of employment services.
  2. Definition of responsibility for organising services by municipalities
    • Equal access to services and performance of tasks by municipalities.
  3. Services to be centralised nationally
    • These will be specified after responsibilities have been defined.
  4. Structures
    • Impacts on TE Offices, ELY Centres and the KEHA Centre

Ministries, TE services, ELY Centres, KEHA Centre, municipalities and other stakeholders are currently preparing the transfer of TE services together. As preparations continue, the Ministerial Working Group on Promoting Employment will outline more policies.

Ministerial Working Group on Promoting Employment

Local government pilots on employment

Local government pilots on employment began on 1 March 2021. The pilots aim to increase employment among unemployed jobseekers and to direct them to training and education more effectively. Another objective is to create new solutions to ensure availability of skilled labour. The objective of the pilot is to coordinate different services better and to find efficient services for the customer. The local government pilots on employment will be extended until the permanent transfer of services to municipalities.

Read more about the local government pilots on employment

Inquiries: Tanja Ståhlberg