Employment support

A host of policy initiatives have been aimed at maintaining employment levels; assisting redundant workers, and supporting those unable to gain jobs. Measures include short-term working allowances, which compensate workers who are affected by reductions in their working hours; temporary wage subsidies; retraining initiatives and advice and support schemes. These can prove an effective mechanism for protecting firms and workers from short-term reductions in demand, but their cost can be high, particularly if kept in place for extended periods. The positive benefits of the value of short-time working allowances are widely acknowledged in Germany, but in Finland, the benefits (compared to the costs) are currently subject to some debate.