Govt proposes extension of labour market support for entrepreneurs till Sep

The government on Wednesday submitted a proposal to parliament to extend the right of entrepreneurs to labour market support until 30 September 2021, said a government press release.

Entrepreneurs have been temporarily entitled to labour market support because of the coronavirus pandemic.

The aim is to ensure the livelihood of entrepreneurs in the uncertain situation caused by the pandemic.

The temporary extension to entrepreneurs’ right to unemployment benefit currently in force is scheduled to end on 30 June 2021.

“While coronavirus epidemic shows signs of subsiding, it will take some time before demand will resume and business activities return to normal in all sectors. Labour market support has been one of the key tools to support entrepreneurs during the coronavirus crisis and we consider extending it necessary at this time,” said Minister of Employment Tuula Haatainen.

According to data from Kela, 22,500 entrepreneurs on average received labour market support each month in the early part of 2021. The Ministry of Economic Affairs and Employment estimates that the extension would apply to around 22,000 entrepreneurs a month, unless the epidemic and employment situation changes significantly.

The government's proposal on labour market support to entrepreneurs is included in the third supplementary budget proposal for 2021. Extending the temporary amendment until the end of September is estimated to increase spending on unemployment security by about EUR 48 million.