Finland urged to shift from unemployment benefits to active job creation
A Finnish opinion piece argues that current measures cannot quickly raise employment and calls for a new model using publicly supported social enterprises.
New unemployment figures released in Finland reveal an increase even as the economy expands, highlighting a lag between growth and job creation. Economists cited in the article stress this delay, while the author points out that a large share of the unemployed are long-term, structurally jobless individuals. She argues that merely increasing labour-market flexibility and penalties will not solve the problem.
Instead, she suggests a policy shift: legally recognize social enterprises, fund them publicly, and require them to employ those in precarious employment situations on permanent contracts, with accompanying training. This approach would transform benefit claimants into active workers who pay taxes and receive socially responsible goods, mirroring models used in other European countries such as Spain.
Why it matters
It proposes a structural change to reduce long-term unemployment and boost fiscal contributions in Finland.
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