Finland allocates €1.65 million to Päijät-Häme to ease unemployment crisis

The Finnish state has granted Päijät-Häme €1.65 million in special funding to address the region’s sudden structural change and high unemployment, Yle reports.

Of the total, €400,000 will go toward skills development and re-employment measures, while €1.25 million—drawn from the European Regional Development Fund—will support business investment and development projects aimed at creating new jobs and strengthening the local economy.

According to a Ministry of Economic Affairs and Employment release, efforts to boost employment include training programs, targeted skills development for jobseekers, and pilot initiatives.

Päijät-Häme launched preparations for managing the abrupt structural shift after several major employers in the region entered redundancy negotiations. The work assessed the impact of the changes and the re-employment prospects for affected workers. Based on this, the region applied for state support.

Additional funding may yet come from the European Globalisation Adjustment Fund, as the ministry is preparing a support application for Päijät-Häme’s sudden structural change area.

Employment Minister Matias Marttinen noted in the release that the region can also use youth employment vouchers, which cover half of a young worker’s wage to lower the threshold for hiring. Lahti is additionally participating in a pilot project to combat youth unemployment, with funding targeted by postal code areas.