In the 1990s, a financial crisis and ensuing economic downturn, demographic change and labour shortages put the Personal and Household Services (PHS) system in Finland under stress, especially as the government cut grants to municipalities. The 1990s furthermore saw a shift from mostly household (non-care) services to mostly care services.

Home care in Finland today is divided into three categories: household services, supporting services, and home nursing. For disabled persons, there is also personal assistance available. Furthermore, a tax reduction scheme granted for domestic work and a voucher system is in place. Though about 80 per cent of household service-related workers are employed by the municipalities’ social work departments, making the local governments the main providers in the field, the opening of the PHS market to private actors in the 1990s has initiated a rise in their number, especially in recent years.

Today, an ageing Finish population (as typical for many industrial countries) calls for political measures providing more workforce in the field of PHS in the future, while the labour market is challenged by a high rate of undeclared work that also persists in some PHS-related types of work.

List of PHS Stakeholders

Finnish Association of Private Care Providers

KT Municipal Employers

Trade Union for the Public and Welfare Sectors JHL

Finnish Union of Practical Nurses (SuPerry)

Service Union United (PAM)

Contact Reference: EFFAT