Material of the 10th Annual meeting of the OECD LEED Forum on Partnerships and Local Development |23-25 April 2014 | Stockholm, Sweden
More info http://www.oecd.org/cfe/leed/10th-fplg-meeting.htm
P3 Mats Wadman - Labour market and labour market policy in Sweden
1. Labour market and labour market policy
in Sweden
Mats Wadman
Head of Division of Analysis, PES Sweden
25 April 2014
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. 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. 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. 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. 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. 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. 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. 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