The newly published January–April interim report compares the Tampere Employment Area’s financial performance with the full-year forecast. The forecast includes changes to estimates for both expenditure and income, but the overall financial position is expected to remain balanced throughout the year. Expenditure is projected to be €2.3 million lower than budgeted due to the municipalities’ contributions. Fewer support payments than estimated are expected due to decisions from the previous year, and staff costs are also forecast to remain below budget. The municipalities’ contributions will be adjusted at the turn of the year to reflect the actual costs incurred during the financial year.
The City of Tampere was granted a €2.9 million government grant to promote the employment of unemployed young people in the employment area. However, applications for the employer-targeted subsidy only opened at the end of March 2026. As a result, neither expenditure financed through the youth recruitment subsidy nor the corresponding grant income has yet incurred.
The most important starting points for the budget preparation are the joint employment strategy of the regional actors and the city’s financial balancing programme. The operational objectives will be specified in the autumn budget process, and they will be based on the goals set by the city council. The aim is to increase the number of employed people and improve the employment rate and workforce availability. In addition, several legislative amendments are currently being prepared, and these will affect the preparation of next year’s budget.
The Tampere Employment Area operations are funded through contributions from the municipalities within the area. The estimated total municipal contribution for next year is approximately €70.9 million. Tampere’s share of the 2027 contributions is estimated at 62 per cent, while the other municipalities’ share is 38 per cent. The municipalities’ contributions are determined mainly so that half of the costs are allocated according to the level of broad unemployment and half according to the size of the working-age population. In the draft budget, the Employment Area’s operating expenditure is €4.3 million lower than in the budget for the current year. The key change is that municipalities in the Employment Area will introduce employment services and support measures that go beyond statutory employment services, while funding is to be released for this work. The emphasis on wage subsidies paid in the Employment Area will decrease and this change is expected to bring better results.
– In the Tampere region, we want to be pioneers in how municipalities can support people towards working life. This change gives us greater flexibility to develop solutions that are specifically suited for residents in the area,” says Johanna Kirjavainen, Chair of the Employment Division of the Committee for Vitality and Competence.
– Municipalities across Finland are currently developing employment services and measures that complement the statutory services provided by employment areas. These are generally regarded as more customer-oriented, effective and cost-efficient than traditional employment services. The difficult employment situation is prompting municipalities to consider new alternatives,” says Regina Saari, Director of Employment and Growth.
The budget preparation proposes that a partial transition to cost-causation-based billing be introduced during 2027. In future, municipalities would pay only their respective share of the costs relating to wage subsidies, the employment subsidy for people aged over 55, start-up grants, discretionary expense allowances, compensation for travel and accommodation costs, and the working conditions arrangement subsidy. Where the necessary data is available, these costs can be allocated to municipalities based on the beneficiary’s municipality of residence. The change will be implemented in accordance with the cooperation agreement, while the current allocation model will continue to apply to other costs.
The City of Tampere Executive Board will consider the budget framework on 22 June 2026. The municipalities will submit their statements on the Employment Area’s budget proposal, and the Employment Division will consider the proposal in early September.
