01.03.2023
Employment and Economic Development Services to be transferred to municipalities
Government-produced employment and business services will be transferred to municipalities at the beginning of 2025. The Act was approved by Parliament in plenary session on 1 March 2023.
– Municipalities can now take action, i.e. discuss and agree on employment areas. Some discussions have already taken place in the municipalities of the region, says the project manager of the TE2024 project of the Regional Council of Northern Ostrobothnia Jouni Korhonen.
Korhonen points out that municipalities have long proposed the transfer of state-produced TE services for their own implementation. The reform offers municipalities the opportunity to plan and implement employment management services close to private and corporate customers.
Municipalities are in a hurry
Parliament's decision has been awaited in the municipalities. The entry into force of the Act means busy times for municipal decision-makers. They have to solve big things.
Municipalities must establish employment areas on the basis of three different criteria: The new employment area must have a workforce of at least 20,000 people. The area must be geographically homogeneous. In addition, the level of service must not materially deteriorate from the current situation. In addition, municipalities must have sufficient financial resources to operate.
– The fulfilment of the criteria has already highlighted challenges in the creation of employment areas. For example, the entire Oulunkaari area does not constitute a natural employment area within the meaning of the Act.
The municipalities must notify the Government of the cooperation areas they have agreed on by the end of October this year.
Oulu, Raahe and Ylivieska and their municipalities are already carrying out an employment experiment, so there is already some experience of service production in the employment area. However, there are still 14 municipalities outside the employment experiment in the province. The knowledge of the services transferred to municipalities varies considerably in the region.
Support for preparation in Northern Ostrobothnia
In the Northern Ostrobothnia region, municipalities are offered support in preparing for the change. Project managed by the Regional Council of Northern Ostrobothnia, Northern Ostrobothnia TE2024. The project produces and provides information for municipalities to support decision-making. It will also help prepare for the new approach.
The project of the Regional Council of Northern Ostrobothnia has produced municipality-specific reports on the resources allocated to employment management. The project has produced views for municipalities to form employment areas based on different perspectives and the effects of the reform on the municipal economy.
– There is no such project in any other province in Finland. The contribution of the Regional Council of Northern Ostrobothnia is therefore significant for the implementation of the reform and its support.
Further information: Jouni Korhonen, Project Manager, TE2024 Northern Ostrobothnia, +358 40 685 0438, jouni.korhonen@pohjois-pohjanmaa.fi
The TE2024 project in Northern Ostrobothnia supports municipalities when TE services are transferred from the state to municipalities. The change will take place as of 1 January 2025. The project produces and provides information for municipalities to support decision-making and helps them prepare for the new operating model. The project will run from 13 May 2022 to 31 December 2024 and will be funded by the Regional Council of Northern Ostrobothnia (AKKE funding). The estimated cost of the project is EUR 501 886.
