The latest episode of PESPod – the podcast of the European Network of Public Employment Services (PES Network) – focuses on Finland which has recently undergone significant structural changes.

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.

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