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

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

10. Thank you