Tampere Struggles to Spend €3M Youth Hiring Subsidy as Only 34 Hires Go Ahead

YLE reports that nearly €3 million set aside to support hiring of young people in Tampere has so far backed only 34 recruitments. By the last week of May, local employment services had signed 34 agreements from the national recruitment support pool, leaving funds available to subsidise hundreds more hires.

The slow take-up comes despite a weak youth job market in the city – more than 8,000 under‑30s in Tampere are unemployed.

The subsidy covers half of a young employee's salary for six months, up to €1,500 per month (a maximum of €9,000). Restrictive eligibility rules and a weak business outlook have limited demand.

Employers who have used the support say it eases the risk of hiring. Mikko Helminen, co‑owner of Coresbond, says the grant "lowers the threshold for hiring" because the state covers half the wage. Engineer Anita Savela, who started a one‑year contract last week after graduating in 2020, described the job as a lifeline.

So far most agreements have gone to very small employers: 19 contracts with micro firms (fewer than 10 staff) and 13 with small firms (under 50). Tampere city employment specialist Lilli Tolvila says local services continue active outreach, and roughly 400 potential hires could still be funded in the area.

Employment offices have criticised the scheme's strict criteria, and the Ministry of Economic Affairs and Employment is proposing changes to make the support easier to use, including shortening the required prior unemployment period, allowing shorter contracts and widening eligible employers to include foundations and associations.