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P3 Mats Wadman - Labour market and labour market policy in Sweden


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Material of the 10th Annual meeting of the OECD LEED Forum on Partnerships and Local Development |23-25 April 2014 | Stockholm, Sweden
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P3 Mats Wadman - Labour market and labour market policy in Sweden

  1. 1. Labour market and labour market policy in Sweden Mats Wadman Head of Division of Analysis, PES Sweden 25 April 2014
  2. 2. 1987 1990 1995 2000 2005 2010 2014 2 4 6 8 10 12 Activity rate, employment rate 68 70 72 74 76 78 80 82 84 Employment rateActivity rate Act iv it y rat e, em p lo ym en t rat e an d u n em p lo ym en t rat e in Swed en , ag e ran g e 16-64, p erio d 1987-2014
  3. 3. Change per year, number of persons 1992 1995 2000 2005 2010 2012 2015 2020 2025 -20000 -10000 0 10000 20000 30000 40000 Domestic bornForeign born Source:PES,SCB Demographic effect on labour force domestic born and foreign born, forecast 2013-2025
  4. 4. Economic growth and labour market • Positive economic development in Sweden comparing to other countries during resent years. • Strong growth of employment – 275 000 jobs since 2006 (ages 15-74). – About 70 percent of these jobs went to foreign-born. – 50 percent of all new jobs was created in Stockholm region (23 percent of Sweden's population). • Rising unemployment from 7,1 to 8 percent 2006 to 2013 – in Stockholm 6,1 to 6,8 percent. • Historical strong development of labour supply – increase of 350 000 persons since 2006 - important factor behind the rising unemployment.
  5. 5. Active labour market policy • Labour market policy is an important part of economic policy. • The objective “Full employment” shall be reached by measures that – Stimulate the supply of labour – Stimulate the demand for labour – Ensure that matching in the labour market works well. • “The Swedish model" - an active labour market policy in cooperation with municipalities, organizations and other public agencies which focus on getting the unemployed back to labour force and work - “work line” (arbetslinjen) – avoid long term unemployment.
  6. 6. Various measures taken in recent years for employment and for increasing and strengthen labour supply: • Job tax deduction • Tax deduction for some services - ROT (Repairs, Conversion, Extension) and RUT (Cleaning, Maintenance and Laundry) • Reduced employer taxes for young people • Increased funding for adult education • Swedish National Agency for Higher Vocational Education was established (2009) • Investment in higher education – universities and colleges • Increased investment in infrastructure • Increased government support for municipalities • New rules in the unemployment insurance system • Change in responsibilities relating to new immigrants (refugees) • Changes in regulations in the health insurance system
  7. 7. Labour market programmes and reforms • Labour market programmes – 4,0 percent of labour force in 2013 (201 000 persons in ages 16-64). • 68 percent of these in guarantee programmes (started 2007), - job and development programmes (unemployed 300 days) - youth job programme (unemployed 3 month) New reforms in area of labour market policy 2010: • Establishment reform relating to new immigrants (refugees). • New regulations in the health insurance system – persons with work ability will be tested in a labour market programme (WLI) for re-entry in the labour force. Focus on increasing supply of labour and reduce reliant on welfare benefits.
  8. 8. Percent of population ages 15-64 Ic eland Sw itz erland Sw eden N etherlands D enmark N orw ay Germany U nited Kingdom Aus tria Finland Es tonia Latv ia Spain Portugal Lithuania C z ec h R epublic Franc e Slov enia Slov ak ia Ireland Greec e Bulgaria Belgium Poland H ungary R omania Italy C roatia Turk ey 0 10 20 30 40 50 60 70 80 Activity rateEmployment rate Employment rates and activity rates 2012
  9. 9. Percent of active population ages 15-74 Spain Greec e C roatia Portugal Latv ia Ireland Slov ak ia Lithuania Bulgaria H ungary Italy Es tonia Franc e Poland Slov enia Turk ey U nited States Sw eden U nited Kingdom Finland Belgium D enmark C z ec h R epublic R omania Ic eland Germany N etherlands Aus tria J apan N orw ay 0 5 10 15 20 25 Unemployment,totalLong term unemployment Unemployment and long term unemployment
  10. 10. Thank you