Finland to phase out rehabilitative work activities, raising concerns over social exclusion

Finnish public broadcaster Yle reports that the government plans to abolish rehabilitative work programs as part of a social welfare reform, leaving thousands uncertain about alternative support.

Work coach Pauliina Lahti, who once relied on the same program herself, warns the change risks deepening marginalization. “These low-threshold stepping stones are incredibly important,” she said, describing how the scheme helped her transition from long-term unemployment to stable employment.

The government cites cost savings and a need to clarify social welfare responsibilities, arguing that employment services—not social care—should handle job placement. However, critics note that only about 10% of current participants are ready for mainstream job programs, according to a 2023 survey by the Ministry of Social Affairs and Health.

Rehabilitative work activities, which provide a daily allowance of €9 instead of wages, served roughly 12,200 people nationwide in late 2025—down from 27,000 the prior year. The reform, set to take effect in 2026, would shift responsibility to employment agencies, though replacement services remain undefined.

Jutta Paavola, a service director for the South Ostrobothnia wellbeing services county, acknowledged the change aims to “streamline the law” but admitted uncertainties persist. “We don’t yet know what will replace this,” she said.

For Lahti, the program was life-changing. After years outside the workforce, she began in a low-pressure workshop, progressed to recycling center tasks, and eventually became a coach herself. “I’ve seen people’s posture straighten, their gaze lift—it’s about regaining confidence,” she said.

With annual costs estimated at €98.5 million, the government insists the reform will improve efficiency. But providers like Trimma ry, which offers cleaning, recycling, and carpentry training in Seinäjoki, fear the gap will push vulnerable individuals toward healthcare services instead.

Trimma ry’s CEO Pirita Karjala called the transition “deeply uncertain,” emphasizing that many participants need gradual, supported pathways—not immediate job placement.

The proposal is currently under review, with final decisions expected later this year.