New labour minister Matias Marttinen. Photo: Antti Aimo-Koivisto / Lehtikuva
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Matias Marttinen will begin his duties as Finland’s new Minister of Employment on Tuesday, taking over amid a rise in unemployment and uncertainty about the government’s job creation targets.
In an interview with Yle, the National Coalition Party MP said the government still aims to create 100,000 new jobs, despite Statistics Finland’s recent labour survey showing 31,000 more people unemployed in March than a year earlier. The number of employed people also fell by 5,000 over the same period.
Marttinen said that reforms agreed in the government’s mid-term policy review will support growth and improve employment levels in the coming years.
“I believe the measures already taken support our economic growth and stronger employment. But more will be needed, and the government has just decided on several steps this spring,” he said.
To those who have lost work, Marttinen had a single message: “The economy is turning around.”
He said this shift should begin to show later in the year, with employment improving as economic conditions strengthen.
The government’s mid-term review included almost €1 billion in earned income tax cuts. Of this, €500 million is directed at low- and middle-income earners, while over €330 million will benefit high-income individuals.
Researchers interviewed by Yle have cast doubt on the economic impact of such cuts. However, the government has maintained that the reforms will incentivise work and increase labour market participation.
Marttinen confirmed that he will introduce additional legislative reforms in the autumn. These will focus mainly on increasing flexibility for small and medium-sized enterprises.
“I will bring about five proposals related to the labour market to Parliament this autumn. These will focus on making it easier for SMEs to hire more Finnish workers,” Marttinen said.
Among the proposed changes are the removal of the employer’s obligation to rehire previously dismissed employees, easing personal-based dismissals, and allowing fixed-term contracts of up to one year without justification.
He also said part-time workers would be required to apply for four jobs to retain eligibility for adjusted unemployment benefits.
The changes have already drawn criticism, particularly the proposal to relax rules on dismissals without specific cause.
Despite recent negative job figures, Marttinen pointed to the Ministry of Finance’s economic forecast published last week, which predicts GDP growth of 1.3 percent this year. The forecast also projects an improvement in employment next year, driven by rising real household incomes.
He acknowledged, however, that recovery to pre-2022 employment levels is expected to be slow. Economists have warned that external risks, including trade tensions, could still derail growth.
HT
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Source: www.helsinkitimes.fi
