Eleven cities join district pilot: Government to tackle youth unemployment by post code area

The Government will conduct pilot projects to reduce youth unemployment in cities with high youth unemployment, focusing on neighbourhoods and districts. Helsinki, Espoo, Vantaa, Turku, Tampere, Oulu, Pori, Lahti, Kuopio, Jyväskylä and Joensuu have joined the pilot.

The preparatory work for a decree on the post code pilots is underway at the Ministry of Economic Affairs and Employment. The decree will be placed under public review early this summer, and the projects are expected to begin this year.

“We are starting a new kind of trial to reduce youth unemployment in our largest cities. By observing the neighbourhoods, we can better see the help and support that young people need. The eleven selected cities can create solutions for their local needs based on cooperation, which give our young people a better capability of finding a job and clear new paths to employment. Our objective is especially to give young people not in employment or education a better sense of having their own path to employment,” says Minister of Employment Matias Marttinen.

The objective of the district projects will be to reduce youth unemployment, which has grown and become protracted during the economic downturn. The projects will focus particularly on employment difficulties in districts where young people have the greatest need.

In this year’s second supplementary budget, the state has earmarked approximately €15 million for 2026–2028 for district projects that build and experiment with ways of reducing youth unemployment.

Youth package of the Orpo Government

The district projects to promote youth employment will be carried out in accordance with the measure in the Orpo Government’s spring 2026 discussion on spending limits. According to the measure, the Government will carry out a pilot during 2026–2027 to reduce youth unemployment in cities with high youth unemployment and the six largest cities, focusing on neighbourhoods and city districts. The pilots will make extensive use of the private and third sectors and will develop new effective ways to reach and support young people who are not in employment or education and who are in a weak labour market position.

Reason for district-focused projects?

n Finland, the majority of 18–29-year-old young people live in cities. Typically, there are various risks of socioeconomic segregation concentrated in cities, such as unemployment and low levels of income and education. The socioeconomic risks then concentrate within the districts of the cities.
Further information
Teresa Salminen, Special Adviser, tel. +358 295 047 318 (questions for the Minister of Employment)
Jenni Wessman, Senior Specialist, MEAE, tel. +358 295 047 034 (available until 26 June)
Janne Savolainen, Chief Specialist, MEAE, tel. +358 295 047 344 (available from 6 July)