Paimio feeling confident about the employment service reform - also regarding finances

Jari Jussinmäki and Johannes Joutsenlahti from the Town of Paimio praise the positive atmosphere in the preparation of the employment area. They feel that Paimio has made its voice heard. Photo: Heidi Pelander.

Municipal finances are facing changes. With the reform of employment services, municipalities will pay an increasing share of unemployment benefit costs as unemployment becomes more protracted.

"It's clear that more is now required of municipalities as costs are rising faster than before. We too are facing a new challenge," says Paimio Mayor Jari Jussinmäki.

The basic principle remains the same: the longer a resident is unemployed, the higher the share of benefits paid by the municipality, i.e. the higher the so-called penalty payments.

Under the new model, fines will increase faster than before, on a six-point scale. If you have been unemployed for more than 700 days, the municipality will pay half of the benefit costs, which is the maximum for penalty payments.

Once the working condition has been met, the daily benefit counter is then reset. The criteria for the working condition will also be tightened: for example, employment with a wage subsidy will no longer meet the working condition. Participation in rehabilitative work activities will also not remove the jobseeker from a municipality's list of payments.

Client work in the area is key

Despite the tightening of the funding model, Paimio is looking forward to the entry into force of the reform. Many services will be centralised in Turku, but client meetings will continue in Paimio.

"For us, the most important thing about the reform was that the face-to-face work with the unemployed has been delegated to us as local work. That's what we're good at and we believe in its results," says Jussinmäki.

By results, he refers to the statistics. Paimio and Sauvo have among the lowest unemployment rates in the region, and the number of long-term unemployed is low even by national standards.

The enthusiasm for the new system is also linked to the fact that Paimio has been investing in its own employment services since 2006. Apila, an activity centre for the unemployed, was also set up in the town.

Cooperation with the state TE Services was already established during the time of the Paimio TE Office. Paimio has also been involved in two municipal employment pilots in which the resources, skills and services of the state and municipalities were coordinated to promote employment.

"In other words, we have the expertise and knowledge of where we are going," says Johannes Joutsenlahti, Head of Paimio Employment Services.

Quick reaction is key

And what will Paimio invest in the future, as the town's responsibility for employment services grows and the conditions for fines are tightened?

According to Joutsenlahti, more emphasis needs to be placed on maintaining and restoring clients' ability to work. The sooner a person can get access to effective services, the easier it is to find employment.

"Health challenges are often the greatest in terms of employment. This is where we need to work together with the wellbeing services county. The aim is to tackle unemployment as quickly as possible. In my opinion, resources must be put into personal contact and client service for the unemployed," he adds.

According to Jussinmäki, new jobs are also created through education. Training can be tailored to the needs of companies in cooperation with, for example, Salo Vocational College.

The desire to maintain work activity

The changes to the organisation of Paimio's employment services will ultimately be small. There are currently 11 employees, three of whom are from the TE Office through the municipal pilot scheme. The reform is expected to bring an additional two state employees to Paimio.

In Paimio, the annual budget for employment services will triple to €2.1 million. The town's previous investments in employment services show that the reform will not result in net costs for Paimio, but in increased central government subsidies from to the budget.

In addition, around half a million euros will be spent on renovating the facilities of the Apila Activity Centre to provide enough office space. There are no plans to cut back on workshop facilities for the unemployed, even if the work activity no longer contributes to the town's share of unemployment benefit costs.

"Work activity is, however, important in human terms. It offers a working community, routine and content to the day, and can be an important transition point for many before finding employment," says Joutsenlahti.

What is it?

• Responsibility for organising public employment services will be transferred from the TE Office to municipalities and cooperation areas formed by municipalities on 1 January 2025.
• The idea of the reform is to improve the matching of labour supply and demand and to speed up employment. The aim is to bring public employment services closer to clients.
• The Turku employment area will consist of 23 municipalities in Southwest Finland, including Paimio. Turku will act as the municipality in charge. There will be 45 employment areas or municipalities that organise services themselves.
• The shared services and tasks of the employment area will be centralised in Turku. In addition, some municipalities in the Turku employment area will offer local services. Paimio is one of these municipalities.

Teksti: Heidi Pelander

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