The idea of the so-called individual job search model is both to patience and to help the unemployed find employment. More officers are hired at the TE offices, and the unemployed are met once every two weeks at the beginning of unemployment.
Government decided in the budget debate reform job search obligations and services. The reform is one of the government’s key employment measures. It is expected to reach about 10,000 new employees by the end of the decade.
The purpose of the so-called individual job search model is to make the unemployed apply for work faster by renewing obligations and increasing face-to-face meetings with the unemployed. An example has been sought in other Nordic countries, where the unemployed are both helped and patronized more than in Finland.
The changes are due to take effect at the beginning of 2022 at the earliest. HS reviews the main points of the government’s plan.
An unemployed person has to apply for 0-4 jobs a month
The government intends to oblige unemployed jobseekers to apply for a maximum of four jobs each month. The number varies individually according to the work situation of the unemployed residential area and his or her ability to work.
In principle, the number of jobs applied for is four. If the work situation in the area or the jobseeker’s ability to work is poor, the number may be lower. In all situations, the unemployed are not obliged to apply for any job. Job searches are reported once a month in the te offices’ electronic service.
The unemployed person decides for himself which jobs he will apply for. However, they should be such that the job seeker has a realistic chance of getting a place.
Today, TE offices can assign vacancies to the unemployed, which they are obliged to apply for. According to the government’s memorandum, these binding job offers could also be shown in the future, but the issue is reportedly still under further preparation.
Failure to note first, then quarantine
If a jobseeker does not show that he or she has applied for a sufficient number of jobs in a given month, he or she will first receive a notice. If the same thing happens next month, there will be a curtailment, ie a temporary cut-off of unemployment benefits.
The cuts in the government model are softening from the current one. The first offense would result in a five-day quarantine and the next a ten-day quarantine. The maximum possible quarantine would be 45 days. You can get one where the unemployed person resigns or refuses a secure job.
At present, the quarantines are not the above note, and their duration is 30-90 days. Those who are in Karen can and will continue to receive other social benefits, such as housing and income support.
Karens become more common, surgery support significant
While the austerity measures are softening, the government estimates they are becoming more common. This is due to the fact that there is currently no mechanical application obligation for the unemployed as planned.
Although the qualifiers will be shortened, they could cut a significant portion of the unemployment benefit. The benefit is normally paid for an average of 21.5 days a month. If the benefit is cut off for five or ten days, the monthly unemployment benefit can be reduced by almost a quarter or almost half.
The active model, which has already been abolished, cut the benefit by 4.65 per cent a month if the unemployed person did not work part-time or participate in services. However, this cannot be directly compared to the model envisioned by the government, because during the active model, the unemployed person could also get a cure for some other offense. Now no such double cutter is created.
The unemployed person initially meets with the clerk every two weeks
The government aims not only to pat the unemployed to work, but also to provide them with more personal guidance.
The TE Office would arrange a personal meeting or otherwise contact the unemployed person within five working days of starting the job search. Currently, the first contact of a job seeker takes place within two weeks.
In addition, the TE Office should arrange a face-to-face meeting with the jobseeker every two weeks for the first three months of unemployment. After that, the appointment interval would be three months. After unemployment continued for six months, a new “intensive period” would follow, with three meetings per month.
Appointments may not always be physical appointments. Especially because of the long distances, they could also be organized as video calls, for example. Attendance at meetings would, in principle, be mandatory, ie refusal to attend could lead to remark and curiosity.
1,200 new officers in Te offices
In order to be able to provide more personal guidance, an estimated 1,200 new clerks will be hired in the TE offices. Today, there are about 3,150 officers, so the increase is significant.
For this reason, the government decided to allocate an increase of EUR 70 million to the budget for te services in the budget dispute.
It is by increasing face-to-face encounters that left-wing government parties justify why the model of individual job search is different from Juha Sipilän the self-employed job search model of the (central) government, ie the “active model second”.
Sipilä’s government prepared the Minister of Labor Jari Lindström (sin) under the leadership of a very similar job search obligation until abandoning the plan in the final meters. It did not include the planned substantial increase in officials and contacts.
Of the current governing parties, the Left Alliance in particular strongly opposed the obligation to seek employment and demanded the burial of the “active model second” once and for all.
Where does the employment effect come from?
The details of the model are now moving on to further preparation. According to a preliminary estimate by the Ministry of Finance, to increase employment by 9,500 to 10,000 by the end of the decade. The estimate may still change in further preparation.
The impact can be compared, for example, to the active model revoked by the Marin government, for which the Sipilä government estimates the employment impact of 5,000–12,000 people. Ex-post researchers though did not find clear evidence of how many people the active model potentially got to work.
The employment impact of the individual job search model is primarily based on Nordic research on how face-to-face meetings between the unemployed in the early stages of unemployment speed up employment, says a leading specialist Olli Kärkkäinen from the Ministry of Finance.
Another key factor, according to Kärkkäinen, is the so-called deterrent effect: according to research, the credible threat of sanctions makes people invest more in rapid employment or maintaining their jobs than the sanctions themselves.
The Ministry of Finance will make its final assessment of the employment impact once the government completes the details of its model. Preparations for the model are now continuing at the Ministry of Employment and the Economy.