Finland applies for EU aid to mitigate structural change in Äänekoski and Päijät-Häme

Finland applies for EU aid to mitigate structural change in Äänekoski and Päijät-Häme

In September, the Ministry of Economic Affairs and Employment submitted two applications to the European Commission for support from the European Globalisation Adjustment Fund (EGF). The funding would be used to help redundant workers in Äänekoski and Päijät-Häme to find new jobs, develop their competences and retrain for other sectors.

The first application seeks funding for the Äänekoski area, where a structural change and redundancies in the wood products industry have had a substantial effect on the region's labour market. The Ministry is applying for support for around 220 people made redundant in the wood products industry and companies linked to it. The total amount applied for is EUR 1.3 million.

The application for the Päijät-Häme region seeks to mitigate the weak employment situation caused by changes in several sectors and the resulting redundancies. The Ministry is applying for support for approximately 780 people made redundant in a number of sectors. The total amount applied for is EUR 1.9 million.

The European Globalisation Adjustment Fund provides help to workers who have lost their jobs as a result of major structural changes. The funding can be allocated to, for example, career and job search guidance, continuing education and training, and entrepreneurship coaching, all based on regional needs. Of the total budget of a project implemented with EGF support, 60 per cent comes from the EU and the remainder is funded nationally. The support period cannot exceed two years.

Goal is to find work quickly and strengthen competences

The purpose of the funding is to help redundant workers find a new job, an education path or an entrepreneurial opportunity as soon as possible. The support measures will depend on the needs of the region and redundant workers and will be planned in collaboration with local operators.

"Losing a job can be a real crisis not only for the person made redundant but also for their families. This funding can help the people affected by the structural change by offering them individual support, training and new opportunities. It is our aim for all people who have lost their jobs to either find new work or another path in working life," says Minister of Employment Matias Marttinen.

Investments will depend on skilled labour

The funding application for Äänekoski focuses on the wood products industry while the Päijät-Häme application concerns multiple sectors. This means that aid measures will be tailored to respond to the needs of each region. EGF funding will provide additional resources alongside national services when the change is at its peak.

"It is important for the future of the regions that skilled workers stay in the region. There is still demand for wood product skills in Äänekoski, with new industrial facilities being built in the area. The redundant workers in Päijät-Häme come from many sectors and they need different employment or training paths. Companies tend to invest in places where skilled workers are available, and therefore helping redundant workers is also an industrial policy measure," says Minister of Economic Sakari Puisto.

The applications will be assessed by the European Commission. After a favourable decision from the Commission, Finland can launch services in cooperation with regional bodies. In Äänekoski and Päijät-Häme, the employment area of northern Central Finland, and the employment areas of Lahti and Päijät-Häme will be responsible for the implementation of the projects, respectively.

Inquiries:
Teresa Salminen, Special Adviser, tel. +358 295 047 318 (questions to the Minister of Employment)
Lotta Laitinen, Special Adviser, tel. +358 295 049 058 (questions to the Minister of Economic Affairs)
Johanna Slaney, Senior Specialist, Ministry of Economic Affairs and Employment, tel. +358 295 047 017

The Ministry's email addresses are in the format [email protected]