Editorial | There are reasonable grounds for reforming the wage subsidy

Editorial|Editorial

Government is preparing a reform of the wage support paid to the hard-to-employ. The purpose is to direct the support even more to companies, as those employed with support are more likely to move to normal jobs from companies than from municipal or association jobs. At the same time, the rules for the 100 percent wage subsidy paid to third sector operators will be changed. When the business is extensive, one operator can in the future receive support of up to 200,000 euros in three years.

Associations oppose strict reform, which they say threatens recycling centers, workshops and other activities run by the long-term unemployed. Concern should be taken seriously, but there is another side to the matter.

The main purpose of salary support is to act as a springboard to normal working life. This is unlikely to be realized in the best way in a workplace that runs largely on support workers. Especially during a worsening labor shortage, it is natural to invest in pathways that lead to normal work.

On the other hand, wage support should not distort competition. Recycling of goods and materials is a growth industry that can create profitable companies and normal jobs – but it won’t happen if some of the operators get their wages from the state’s pocket.

Injury or those unable to work due to illness, the support will be increased from 50 to 70 percent in the reform. The employment of the disabled is also supported by the state company Työkanava, which will start in the fall, and it transfers labor to employers, such as the state company Samhall, which has been successful for a long time in Sweden.

The labor market is now following the example of other Nordic countries. It means an increase in flexible forms of work, such as part-time work and support work. This partly explains the increase in Finland’s employment figures: more people than ever do even a little work. It is a good direction, as long as the system does not confuse the market, and as long as it increases and does not decrease the number of working hours.

The editorials are HS’s positions on a current topic. The articles are prepared by HS’s editorial department, and they reflect the journal principle line.