TE24 reform: Preparation of employment regions is progressing fast
Municipalities forming an employment region must submit a plan for the organisation of employment regions to the Ministry of Economic Affairs and Employment by 31 October 2023.
What is this about?
At the beginning of 2025, the responsibility for organising TE Services will be transferred to municipalities or to employment regions consisting of several municipalities. The responsibility for organising employment services means organising the services and fulfilling the obligations laid down in the law. The municipality responsible for organising the services is responsible for ensuring that the services people need are of a high quality and that they receive them in a timely manner.
Municipalities must take certain criteria into account in the formation of employment regions: the labour force, or the working-age population, of an employment region formed by a municipality or municipalities must be at least 20,000 people. The employment region must also form a geographically coherent area that works in terms of the labour market. Municipalities must notify the Ministry of Economic Affairs and Employment of the formation of cooperation regions by the end of October.
Under certain conditions, municipalities may also apply from the Finnish Government a derogation regarding the responsibility for organising employment services. On certain grounds specified in the act on organisation, the Government may grant the responsibility for organising the services for an employment region with a labour force of less than 20,000 people. The derogation requires that the service level in the region does not weaken significantly as a result of the derogation.
What is the aim of the future employment regions?
Municipalities and employment regions know their local residents and trade and industry best, so the reform will provide customers with services tailored to their local needs.
The municipalities’ opportunities to develop services to meet the needs of local residents and employers also strengthen the vitality and competitiveness of the regions. This boosts the efficiency of the employment process, as employment services, educational services and business services are the responsibility of the same provider. Regional mobility will also be considered in the reform.
The TE24 reform is part of the Government’s employment measures. The aim is that job seekers find work and that employers find the talent they need. This will strengthen growth and well-being in Finland in a sustainable manner. The reform has been calculated to increase the number of employed people by 7,000–10,000.