The Nordic labour market service model has a positive impact on public finances. According to estimates, the positive impact will be about EUR 230 million. The reform will have a full effect on public finances from 2025.
The estimate does not take into account the costs arising from increased resources of TE Offices and participating municipalities (EUR 70 million per year) and an increase in unemployment security expenditure (approximately EUR 33.4 million per year).
The increase in unemployment security expenditure is caused by changes to sanctions. On the other hand, housing allowance expenditure will decrease by an estimated EUR 2.4 million per year and social assistance expenditure by an estimated EUR 14.5 million per year as a result of the reform.
In addition, there will be one-off costs related to the development of information systems.