TE services reform 2024
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.
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. 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
Content and timetable of the reform of TE services
The reform consists of the following parts:
- Responsibility of municipalities to organise services
- Elements of incentive funding
- Services to be transferred
- Central government tasks and steering
- Information systems
- Personnel and change management
Ministries, TE services, ELY Centres, KEHA Centre, municipalities and other stakeholders have prepared the transfer of TE services together. As preparations have continued, the Ministerial Working Group on Promoting Employment has outlined more policies.
The Government's legislative proposal was adopted by the Parliament on 1 March 2023. The responsibility for organizing public employment services was transferred from the state Employment and Economic Development Offices to municipalities and municipal cooperation areas on 1 January 2025. There are a total of 45 employment areas.
A diverse group of stakeholders prepared the reform implementation
Municipalities were responsible for the preparation of employment areas, and a national implementation program supported municipalities in carrying out the reform. The implementation program was developed within a broad preparatory network that included all key actors and stakeholders of the reform, as well as representatives of personnel.
The guiding objective of the preparation was a smooth transition, meaning that all essential functions and services were operational when the responsibility for organizing services was transferred to municipalities and employment areas.
Inquiries: Tanja Ståhlberg