Government allocates EUR 2.25 million in targeted funding to ease abrupt structural change in South Karelia and Vakka‑Suomi

The Government will provide targeted separate funding to South Karelia and Vakka‑Suomi for measures that promote re‑employment and improve skills. Both regions have faced an abrupt structural change (ASC, or ÄRM in Finnish) that has required regional action. In addition, the Ministry of Economic Affairs and Employment has decided to allocate European Regional Development Fund (ERDF) funding to improve the investment and growth conditions of businesses in Vakka‑Suomi with the aim of creating new jobs.

“Many families received difficult news last year, and worries about job security, skills and the future have been very real. We have taken these concerns seriously. The Government will support the ASC regions and those who have lost their jobs by granting EUR 750,000 to South Karelia and EUR 500,000 to Vakka‑Suomi for re‑employment measures and skills development. Measures that support re‑employment include labour market training, jointly financed labour market training schemes and upskilling,” says Minister of Employment Matias Marttinen.

Granting support for tackling abrupt structural change required the Government to establish a new budget item specifically for retraining.

“Abrupt structural change calls for swift and effective solutions. We must strengthen the investment and expansion opportunities of growth‑oriented companies in the region. This is why the Ministry of Economic Affairs and Employment has decided to direct EUR 1 million to Vakka‑Suomi and Uusikaupunki for measures that create new jobs and strengthen regional vitality,” says Minister of Economic Affairs Sakari Puisto. This discretionary additional funding will be drawn from the European Regional Development Fund and allocated to investment and development projects by SMEs that create new jobs and support renewal.

Last year, change negotiations launched by major employers in South Karelia and Vakka‑Suomi triggered the assessment under the abrupt structural change operating model. The assessments examined the impacts of the structural change and the re‑employment prospects of those who lost their jobs. Based on the findings, both regions applied to the Ministry of Economic Affairs and Employment for ASC support.

The Ministry is also preparing an application process for regions affected by abrupt structural change under the European Globalisation Adjustment Fund (EGF). If the support applications are approved, this would provide the regions with significant additional resources for employment measures and skills development.

What is the ASC assessment?

Change negotiations by a major regional employer in a region may trigger the abrupt structural change (ASC) assessment. Its purpose is to support the re‑employment and skills development of those made redundant and to mitigate the negative effects of structural change on regional employment. In this approach, key regional operators – such as the Economic Development Centre, employment authorities, municipalities, education and development organisations, businesses and the regional council – together assess the impacts of the structural change and the region’s capacity to respond, for example through education and training, retraining and upskilling.

At the same time, the ASC assessment boosts regional vitality and encourages the renewal of the business structure. If redundancies due to production‑related or financial reasons and their multiplier effects pose a serious threat to regional vitality, the central government may, based on the region’s assessment, provide support for measures that promote employment as well as business renewal, investment and the creation of new jobs. Support is based on the principle that despite abrupt structural change, the region has identifiable development and growth potential that can be reinforced through measures based on skills and a competitive business environment.

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)
Tapani Kojonsaari, Ministerial Adviser, Ministry of Economic Affairs and Employment, tel. +358 295 047 070 (funding to tackle abrupt structural change)
Johanna Osenius, Director for Regional Development, Ministry of Economic Affairs and Employment, tel. +358 295 064 937 (ERDF funding)
Johanna Slaney, Senior Specialist, Ministry of Economic Affairs and Employment, tel. +358 295 047 017 (EGF funding)

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