Espoo stays at the forefront by investing in competence, international attractiveness and the green transition – “We risk missing out on growth in well-being due to the skills shortage”
Working life is undergoing major changes: jobs and workers do not find each other, there is a shortage of skilled workers, and large-scale resignations are taking their toll on sectors affected by the coronavirus pandemic. Coordinating experts and jobs, and attracting, retaining and developing skills are an increasingly important part of the City of Espoo’s operations. The city has prepared for this by defining its economic and employment policy priorities.
Employment and business services will be transferred from the TE Offices to the cities and municipalities at the beginning of 2025, making cities and municipalities important promoters of vitality and builders of competitiveness. Therefore, bringing jobs and workers together, ensuring the vitality of businesses and promoting sustainable growth are vital issues for cities.
“We are missing out on growth in well-being due to the skills shortage. This is particularly true in Espoo, where growth comes from knowledge- and skills-intensive companies, more than in any other place in Finland. In Espoo, as many as 45% of companies report a shortage of skilled workers as a major obstacle to growth. Competence and higher education are the key to producing genuinely new things here, which creates well-being for the whole country. If we cannot get enough skilled workers into companies in Espoo, there will be a bigger bottleneck than anywhere else in Finland,” says Harri Paananen, Director of Economic Development at the City of Espoo, in an episode focusing on the skills shortage in the Kasvu & Kipu podcast.
Investments in bringing jobs and workers together, cooperation between operators and the innovation community
Espoo has prepared for the changes by, for example, defining priorities for the city’s economic and employment activities.
“Espoo has a unique ecosystem where high-level innovation cooperation between different operators is perhaps more straightforward than anywhere else in the world. We stay at the forefront by investing in competence, international attractiveness and the green transition. A case in point is the joint innovation cooperation between Aalto University, VTT and the City of Espoo. In order to maintain the competitive advantage we have built up over the years in knowledge- and skills-intensive sectors and to make use of the huge potential, we needed to establish more precise milestones for future development,” says Paananen.
The economic and employment policy priorities, developed in cooperation with the city’s partners and stakeholders, consist of three components: talent matching, the city at your service and the innovation community. They are further connected by three cross-cutting megatrend-like themes: international attractiveness, pioneering and competence, and sustainable business and the green transition.
“The priorities are based not only on a rigorous situational analysis but also on a close dialogue with businesses, research institutes and other key partners. When we set the priorities, we made sure that the measures we prioritised were considered valuable by all members of our ecosystem,” says Paananen.
The role of Espoo and the rest of the Metropolitan Area as a driving force for Finland’s economic growth and a foundation of national well-being is undisputed. The innovative business activities, competence development and cross-border cooperation of operators in Espoo create a strong basis for Finland’s sustainable growth in the face of demographic change.
“It is important to recognise the importance of our region and to provide the necessary support and resources to its operators so that they can continue their successful work in promoting Finland’s economy and the well-being of its citizens,” says Paananen.
Facts
The city’s income base changed when social and health services were transferred from the city to the Western Uusimaa Wellbeing Services County in 2023.
- The share of state subsidies in the city’s budget increased significantly.
- The relative share of property and corporation tax increased.
- Municipal tax remained the largest income item.
Together with the rest of the Metropolitan Area, Espoo is a driving force for Finland’s economic growth.
- Almost 50 % of the Helsinki Stock Exchange’s turnover comes from Espoo-based companies.
- Espoo ranks sixth in the number of patent applications filed in Europe.
The TE24 reform will transfer the government’s business and employment services to the city in 2025.
- Espoo is preparing for the reform with a local government pilot on employment: On 1 March 2021, 18,000 Espoo jobseekers transferred from the TE Office to the City of Espoo as clients.
- The objectives of promoting employment and creating new jobs can be better achieved when employment services, municipal training services and business services are the responsibility of the same organiser.
More information on economic and employment policy priorities.
Listen to the Kasvu & Kipu podcast focusing on the themes of sustainable growth (in Finnish).