The reform of basic income support needs re-evaluation

Finland's recent reform of its basic income support system has led to a substantial surge in individuals being channeled into employment services. Since March, the number of active job seekers has increased by 20 percent. However, employment services report that they lack sufficient resources and appropriate tools to address the complex needs of all these new clients.

A significant concern is that many individuals referred to employment services are primarily in need of social and healthcare support, including assessments of their work capacity, rehabilitation, or long-term assistance. The reform links benefit reductions of up to 50 percent to non-compliance with job-seeking requirements. By the end of April, Kela had issued over 33,000 such directives, and nearly 7,000 recipients had their basic income halved as a penalty.

This approach raises serious questions about the reform's impact. Reducing benefits before a thorough assessment of an individual's work capacity and service needs can result in severe human suffering and considerable societal costs. The problem is exacerbated when services are under-resourced, failing to provide timely and appropriate support. In the worst-case scenarios, this can increase the risks of social exclusion, mental health and substance abuse issues, and crime.

While supporting individuals toward employment is a valid goal, the obligations imposed must be fair and realistic. For many, the path to sustainable employment involves part-time work, work trials, job coaching, or supported employment, rather than an immediate full-time job search. Therefore, job-seeking obligations and their consequences should be more closely tied to work capacity assessments. Simultaneously, robust services that genuinely support employment, including timely rehabilitation and employer partnerships, must be available for those in vulnerable labor market positions.

The current labor market situation, with high competition for available jobs, means that individuals in weak market positions are often left behind, regardless of their obligation to seek work. Strengthening employment cannot be achieved by shifting responsibility solely to individuals when the market itself does not offer realistic opportunities for everyone. The article is an opinion piece from Helsingin Sanomat.