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PESPod - the insiders' guide to the EU labour market

From National to Local - Finland’s TE24 Reform

PESPod - the insiders' guide to the EU labour market

Mark Bothe Audioservices, European PES Network, David Poyser

News, Jobs, Politics, Education, European Union, Public Employement Service, Pes, Society & Culture

2.51 Ratings

🗓️ 2 February 2026

⏱️ 19 minutes

🧾️ Download transcript

Summary

Finland’s TE Services 2024 (TE24) reform, which came into force in January 2025, transferred responsibility for public employment services from the national level to municipalities and employment areas formed by municipalities. This new PESPod episode brings listeners inside the transition and examines what the reform means for jobseekers, employers and local authorities. In the episode, host David Poyser speaks with two guests at the centre of the process. Tiina Korhonen, Director General of the Finnish Public Employment Service, outlines the national context for the reform, including recent labour market challenges and the strategic motivations for decentralising responsibility. She explains how bringing services closer to citizens, integrating employment services with education and business support, and strengthening regional vitality were core aims of the new model. Joining her is Jaakko Westerlund, Head of Employment and Integration Services at the KEHA Centre, the organisation supporting municipalities as they deliver the reformed system. He describes the role of the KEHA Centre in providing guidance, maintaining key IT platforms, supporting staff preparation ahead of the changes and ensuring that municipalities have the tools they need to deliver effective services. Throughout the discussion, both guests share early lessons from the implementation and reflect on what other PES can take from Finland’s experience. Key topics discussed include: • Labour market challenges shaped the need for reform Finland entered the reform with high unemployment, falling vacancies and rising long term joblessness. This context informed the decision to reorganise employment services and make them more responsive to local needs. • Decentralisation is intended to bring services closer to citizens The TE 24 reform transfers responsibility to municipalities and employment areas, enabling services to be tailored to regional needs and integrated with education, business support and wider municipal services. • Communication, staff preparation and coordinated support were essential for implementation Internal guidelines, information events, webinars, national campaigns and structured transition programmes supported the preparation phase. The KEHA Centre provided legal guidance, digital tools, performance monitoring and competence development to help municipalities assume new responsibilities. • Time, trust and careful sequencing are key lessons Early implementation highlighted the importance of realistic timelines, thorough planning and strong cooperation across all levels of the PES. Undertaking IT and service reform simultaneously increased complexity, reinforcing the value of phased and well-coordinated change. Further information: If you have any comments about this episode or would like to suggest future topics, write to: EMPL-PES-SECRETARIAT@ec.europa.eu.

Transcript

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0:00.0

I'm David Poyser, a journalist, and welcome to the 26th episode of PestPod,

0:04.9

the Insider's Guide to the European Network of Public Employment Services, or the PES Network for short.

0:11.1

In this episode, we're focusing on a significant public employment service reform,

0:17.0

Finland's TE Services 24 reform.

0:19.9

In January 2025, responsibility for providing employment services

0:25.6

in Finland transferred from the national state-run level to municipalities, and employment areas formed by municipalities,

0:34.6

marking a major step towards a more local, tailored support for job seekers

0:39.7

and employers alike. We'll explore how this transition is being implemented and what lessons

0:45.3

have been learned so far and what the reform means for both local authorities and citizens.

0:51.1

I'm joined by two guests who have been at the centre of this change.

0:54.2

Firstly, Tina Kohunan, Director-General of the Finnish Public Employment Service,

0:59.5

who will share the national perspective behind the TE-24 reform.

1:03.3

Welcome, Tina.

1:04.5

Thank you, David. Nice to be here.

1:07.0

And, Yarko Vesteland, Head of Employment and Integration Services at the Kihar Center, K-E-H-A-Center, the organization supporting Finland's municipalities through this transformation.

1:20.1

Yako, thanks for joining us.

1:21.9

Hi, thank you. Really nice to be here.

1:24.9

Thanks, Yako.

1:26.2

So first of all, to you, Tina, as Director General of the

1:29.4

Finnish Paz, what are the current challenges facing the labour market in Finland? Yes, Finnish labour

1:36.3

market is going through a difficult period. We have currently the second highest unemployment rate in the EU. The trend of the employment rate was

1:47.6

75.8% and the trend of unemployment rate 9.9% in September this year. This means that job openings

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