Bonn, Nov. 2008
Abteilung Wirtschafts- und Sozialpolitik Gesprächskreis Arbeit und Qualifizierung
Aktivierung und soziale Ausgrenzung im internationalen Vergleich
Länderberichte: Dänemark Deutschland Frankreich Großbritannien Italien Niederlande Polen
Schweden Spanien USA
Katarina Thorén Växjö University
FES Project Activation and social exclusion in a comparative perspective Country Report: SWEDEN Author: Katarina H. Thorén
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1. Introduction The Swedish welfare state has a number of social policies and programs that protects people in (difficult) life situations. The working population, in particular, is covered with several public protection schemes that attempt to compensate different forms of income losses. For example, social insurance including sickness benefits in case of illness or injury, unemployment insurance in case of unemployment, activity support while participating in labour market policy programs. Plus the municipal social assistance system for those that cannot claim benefits from the above schemes or lacks adequate resources in general. In the Swedish welfare state, active labour market policies have an important role in supporting individuals to enter and re-enter the labour market (Esping-Andersen, 1990, Junestav, 2004). The institutional arrangements around these welfare policy programs are very complex with different responsible entities and a shifting flora of legislations and rules. They are organised and administered by different entities and at different governmental and municipal levels. Most of the programs are linked to peoples’ income and previous participation on the labour market. Except social assistance, which is means-tested on an individual basis and not related to the recipient’s previous income or work record. The so-called ‘work principle’ (arbetslinjen) play an important role for these protection schemes in the sense that they involve different type of active measures and do not rely on passive benefits alone. In 2006, the long tradition with a Social Democratic government reached its end in Sweden when a right-wing coalition came into power. Since then, the new government has both proposed and implemented a number of reforms in the social security sphere, especially in protection schemes that targets the working population. These changes entail, for example, stricter entitlement rules, lower benefit levels and increased individual responsibilities. Although, many protection schemes have been transformed, these changes are relatively marginal in comparison with other OECD countries but are still important from a Swedish perspective. The paper will sketch out the most prominent public benefit schemes and labour market policy programs for the working population. In terms of social exclusion, this paper will provide a brief analysis of the current situation in regards to marginalisation and vulnerability in Sweden. 1.1 Unemployment and labour force participation In the early 1990s, Sweden was hit by a major economic recession and unemployment rose dramatically. Sweden experienced the largest unemployment rates since the 1930s and the government was cutting back on several public benefit schemes in order to handle the situation. Before the recession, unemployment was as low as 2 percent and peaked in 1993 at 10.4 percent. Although Sweden was hit hard during this time period, the economy has recovered and the unemployment rates began to decrease in the late 1990s. Between 1997 and 2006, the unemployment declined from 8 to 4.8 percent. Today, unemployment is down to 4.7 percent (222 000 persons), although it is around 7.6 percent when including those who participate in various labour market policy measures. Labour market participation was 83.1 percent in 1990 but declined significantly during the crisis years to as low as 70.7 percent in 1996. Today, labour force participation is increasing for both men and women and was 80 percent for the total work force in the third quarter of 2007. Sweden has a rather high female labour force participation where 78.6 percent of the women between 16 and 64 are working.
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Men have currently a labour force participation of 83.4 percent. 66 percent of the immigrant population is part of the labour force (Statistics Sweden, Labour Force Survey, 2007a). When these numbers are harmonised with EU’s methods to calculate unemployment for the age group 15-74, Sweden has an unemployment rate of 5.7 percent while the average in Europe is 7 percent (Statistics Sweden, Labour Force Survey, 2007b). See appendix 1 for a detailed description of unemployment and labour force participation during the late 1990s (98/99) and today (04/05) for the total population, young people, immigrants and single mothers. The total population in Sweden is currently around 9 million. The working population between 16 and 64 years is around 5.8 million people in Sweden. Among those more than 4.7 million are considered “working” and almost 1.3 million are considered “non-working”. The non-working group consist of almost 400 000 students, around 760 000 unemployed, sick, or people living on different pensions (e.g early retirement, disability allowance, etc) and 135 000 are “other” non-working individuals (Statistics Sweden, Labour Force Survey, 2007a). 1.2 At risk for social exclusion –vulnerable groups in Sweden Since the 1990s crisis years, three groups are in particular economically and socially marginalised in Sweden. These groups are immigrants, single women with children and young people. The common characteristics for these groups are their weak links to the labour market compared to other groups in the society. The main reason for their vulnerability is difficulties to find stable employment and low economic resources. The current situation for these groups has improved in many ways, although they are still vulnerable in terms of income, unemployment and labour market participation and health (Fritzell et al., 2007). Unemployment for young people is rapidly improving but is still much larger than unemployment rates for the population in general. In the first quarter of 2007, the unemployment rate for youth was 11.9 percent compared to 4.7 percent for the total population. Immigrants still have a weaker position on the Swedish labour market, although both newly arrived immigrants as well as immigrants that have been living in Sweden for more than five years have improved their position on the labour market in the last years. The unemployment rate for non-European immigrants was 13.6 percent during the first quarter in 2007 (National Labour Market Board, 2007). The reason for immigrants’ segregation on the labour market is often explained as low education levels and limited language skills, discrimination by employers and employers’ limited knowledge about foreign education degrees and the lack of social networks that would help them to find jobs through informal channels. Young people experience a difficulty to enter the labour market and little work experience is probaly one reason. Single mothers has both higher unemployment rates as well as difficulties to find full-time employment and in addition to their economic burden of supporting a family make them extra vulnerable.
2. Public benefits In an international perspective, public expenditures on social security programs are high in Sweden, with large public costs for old age care and day care for children. The total share of
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public expenditures of GDP for welfare programs including health care and social services1 decreased from 36.7 percent in 1994 to 32.9 percent in 2004. The expenditures have continued to decline from 30.7 percent in 2000 to 33.3 percent in 2003. In 2005, the total expenditures for the public welfare were 1.5 billions and 40 percent of that amount went to social protection schemes (e.g. unemployment, sickness, old age etc.).These numbers are placing Sweden in the top of the European countries in regards to expenditures on public welfare programs (Statistics Sweden, 2007). In 2006 around one million full-year equivalents received public benefits in Sweden.2 The diagram below demonstrates the development of public benefit receipt between 1990 and 2006 in Sweden. Diagram 1 Number of people between 20 and 64 years that receive public benefits3
Number of people - full-year equivalents
1 400 000 1 200 000 1 000 000 800 000 600 000 400 000 200 000
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
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1994
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1990
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Year
Source: Statistics Sweden 2007
For the working population four different types of public benefits are the most important; • Unemployment insurance • Activity support • Social assistance • Sickness benefits
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Social services include public day care for children, old age care plus general social services and social assistance etc. 2 Full-year equivalents (e.g. two half-time will count as one full-year) 3 Including unemployment insurance, social assistance, activity support and sickness benefits
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These benefit schemes are organised differently and administered by different governmental and municipal authorities and by different regulations and laws. Below is a schematic summary of the institutional arrangments for these benefit schemes. Table 1: Four types of public benefits for the working population Insurance principle, income based, paid by the unemployment insurance funds, governmental subsidised. Rights-based income support while participating in ALMP programmes, governmentally financed and benefits based on previous income, paid by the Social Insurance Office (Försäkringskassan), Means-tested, municipal, local and professional discretionary practices, tax-financed at the municipal levels and paid by municipal social services. Rights-based income support, insurance principle, based on previous income and paid by the Social Insurance Office.
Unemployment Insurance:
Activity Support:
Social Assistance:
Sickness Benefits
The diagram below demonstrates the development of sickness benefits, sick-leave and activity support, unemployment benefits and social assistance between 1990 and 2006 and calculated in full-year equivalents. Diagram 2 Number of people on public benefits divided in four different benefit types 600 000 500 000 400 000 300 000 200 000 100 000
06
05
20
04
20
03
20
20
02
01
20
20
00
99
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98
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97
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96
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93
92
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91
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90
0
Sickness benefit Long-term sickness & Activity Support Unemployment benefit & Benefits for participation in labour market programs Social Assistance
Source: Statistics Sweden 2007
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As the diagram indicates above, the largest shares of public benefits in Sweden are currently sickness related benefits. In the 1990s, the public debate in Sweden was s occupied with the high unemployment rates and the increasing levels of social assistance recipients. The current debate is mainly concerned with socially excluded in addition to the concerns about the high levels of people on sickness benefits. Sweden has in general very good health (e.g. low infant mortality rates and long length of life average) but Sweden has also high rates of people that are not working due to sickness, especially long-term sickness. People on long-term sickleave went from 1.5 percent of the population to 3.2 percent between from 1998 to 2002 (Statistics Sweden, 2003). 2.1 Public benefits for the working population Sweden is well known for its system of active labour market policies and has had a number of policies and programs in the labour market area since the 1940s. The current labour market policy system consists of both financial protections through different income compensation schemes, like unemployment insurance, as well as services and programs that support the unemployed to re-enter the labour market. Expenditures on labour market policy programs are higher in Sweden compared to other OECD countries, and focus in general on different forms of active measures (Wadensjö, 2007). The ‘work principle’ is also one of the key elements of Swedish labour market policies and emphasises both the active measures as well as a strong work ethic. This means that Swedish labour market policies often involve an active participation in re-training and skills-enhancing measures in addition to passive income support. The ‘work principle’ also stresses a strong work ethic in which one should be self-sufficient through a regular employment (see Esser, 2006 for a detailed discussion). This idea is deeply manifest in Sweden and the traditional social democratic ideology, but it was also strongly emphasised during the election campaign in 2006 by the right-wing coalition. After the right-wing coalition succeeded in the election they have clearly stressed the importance of the ‘work principle’. Consequently, they have implemented several labour market policy reforms with focus on work requirements and increased individual responsibilities in terms of obtaining employment and escape public benefit dependency. 2.2 Unemployment insurance Unemployment insurance was introduced in Sweden in 1934 and is administered by the trade unions and subsidised by governmental public funds. In 2006 around 550 000 people received unemployment insurance and this equals 6.1 percent of the population. The total spending on unemployment insurance in 2006 was 29.9 billion SEK (3.1 billion Euro) (Swedish Unemployment Insurance Board, 2007). The unemployment insurance covers both employees and self-employed persons and consists of two parts: a general basic insurance (a base amount) and an insurance against income loss (an income-related benefit). The benefit cannot be claimed before applicants have attained the age of 20. The unemployment funds, that often are linked to different trade unions, are entrusted with the administration of the unemployment insurance in Sweden. As one step to reform Swedish labour market policies, the right-wing government has lowered benefits levels and raising the individual contributions for the unemployment insurance. 2.2.1 Rules
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The unemployment insurance benefits, both the basic and the income-related amount, are conditional with the following requirements: - Be capable of working for at least three hours per day and an average of 17 hours per week. - Be prepared to accept a reasonable job offer. - Be registered as a job seeker with the public Employment Service (will be described in detail below) and actively be seeking for work. - Drafting an individual action plan in consultation with the Employment Services. The general basic insurance is rendered to unemployed persons who are not members of an unemployment fund or who, though being members, do not yet fulfil all prerequisites. In order to be entitled the income-related insurance one need to been a member of a recognised unemployment fund for at least 12 months. One must also fulfil the work condition, which means that the unemployed person must have worked for at least 80 hours per month for at least six months or 480 hours during six months consecutive months and at least 50 hours in each of these months. Participation in a labour market program may also be counted toward the work condition. Periods of parental leave and total defence duty, if they exceed two months, can also be counted as work according to the work condition. 2.2.2 Benefit amounts The basic insurance benefit is paid as a daily allowance for 300 days, with a qualifying period of five days’ unemployment. The insurance benefit is paid out as a daily allowances and for an unemployed that has worked full-time, they pay is currently set to 320 SEK (34 Euro) gross per day. The daily allowance is reduced proportionally for a person who has worked less than full-time. The benefit is granted for 300 days at the longest. After that, it can be prolonged for another 300 days, only if the Employment Service confirms that no offers are available in the labour market policy system. If an individual participates in a labour market program, Activity Support should be paid out instead of unemployment insurance. The income-related insurance is also paid for 300 days and has a five-day waiting period. The benefit is proportionate to 80 percent previous earnings, with a ceiling of currently at 680 SEK (74 Euro) per day for the first 200 days. From the 201st until the 300th day, this amount is reduced to 70 percent, and from the 301st day onwards, to 65 percent. The claim is not scaled back to 65 percent if the insured must care for a child under the age of 18, they will receive 70 percent until day 450. The benefit period can be extended with an additional 300 days at most. The extension can only be granted by the unemployment fund and if the Employment Services has notified the fund that the unemployed is not going to participate in a labour market program. An unemployed that has met the work condition again are granted 300 days again with the same benefits level as the previous period. Another element of the unemployment insurance is that unemployed must accept job offers that are regarded as reasonable. An unemployed person who refuses such job offer can lose their right to unemployment insurance or the compensation can be reduced stepwise. The first time an unemployed refuses a reasonable job offer the benefit is reduced 25 percent for 40 days, the second time with 50 percent in 40 days and withdrawn at the third time. 2.2.3 Administration and organisation There are 36 recognised unemployment funds in Sweden with over 3.7 million members, although membership rates are rapidly decreasing. It is the unemployment funds that administer and pay out the benefits to the unemployed. The Employment Services provide the
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funds with information about the unemployed and controls if the unemployed comply with the rules of being active in job search and are accepts reasonable job offers. The supervisory authority for the unemployment funds is the Swedish Unemployment Insurance Board, which also control whether the funds complies with the unemployment insurance legislation. Furthermore, both unemployment insurance and the unemployment funds are primarily financed by the governmental budget. First, through the “labour market fee” that employers pay to the state, and second, through membership fees paid by individuals to the unemployment funds. In 2005, the labour market fee covered 87 percent of the unemployment insurance and 13 percent was covered by the individual contributions through the membership fees. From January 2007, the new government imposed on the funds that they must pay a higher fee to the government based on the numbers of unemployed members. This has resulted in higher fees for members, which probably is one reason for the membership drop out. Unemployment insurance is a rights-based benefit and as long as the individual is actively seeking for jobs during the first 300 days, the individual is not required to participate in mandatory measures in return for the benefit. But the new government has indicated that people’s job search must be more efficiently monitored and controlled by staff at the Employment Services. One example of the tighter rules is that an unemployed individual must apply for jobs other than the persons‘s primary education and that one must expand the job search area from the local area to all other regions in Sweden. 2.3 Social Assistance Social assistance is another important income protection scheme in the Swedish welfare system. Although it was developed to target individuals with social problems, it is now a rather common income support for those that do not qualify for unemployment insurance. Social assistance is a means-tested economic support that is legally sanctioned by the Social Service Act and municipalities are responsible for both administration and costs. In 2006, 392 500 people received social assistance4 in 219 000 households, which equals 4.3 percent of the population. The highest level was in 1996 when 8 percent of the population received social assistance. Since then, the level has been stable between 4 and 6 percent. In 2006, the total expenditure for social assistance that was 8.7 billion SEK (941 million Euro) (National Board of Health and Social Welfare, 2007). Social assistance is a monthly benefit that should secure a reasonable standard of living including food, rent, clothes, electricity etc. In 2007, the national norm, which is annually established by the government, was 3470 SEK (375 Euro) for a single adult. Social assistance is provided by the municipal social services (kommunala socialtjänsten) and there are 290 municipalities in Sweden. Applicants must undergo a personal investigation regarding their financial and social situation in order to be entitled social assistance. No personal savings or other valuable assets are allowed in order to become eligible. The practices around social assistance vary significantly between municipalities. In 2006, 43 percent of the social assistance recipients were unemployed as the main reason for their lack for financial resources and 32 percent received social assistance for more than ten months in 2006 (National Board of Health and Welfare, 2007).
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Including all family members in that household (i.e. children).
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One basic prerequisite for social assistance is that applicants should do what he or she can in order to be self-sufficient and many municipalities require recipients to be registered at the Employment Services. According to the Social Service Act, the municipal social services should collaborate with the local Employment Services in supporting the individual to reenter the labour market. Since 1998, municipalities have the opportunity to require recipients to participate in municipal job-search activities or other skill-enhancing activities. This regulation primarily applies to unemployed youths under 25, but can be extended to persons beyond that age. Municipalities are utulising this opportunity very differently, where some municipalities only targets young people for this type of requirements whereas other municipalities mandate all unemployed social assistance recipients to participate in different activation measures. Hence, many municipalities require all social assistance recipients to participate in municipal activation programs in return for social assistance. This implies that social assistance is not rights-based in same way as unemployment insurance. The Social Service Act provide very few formal rules for activation and a social assistance recipient can be mandated to program participation from day one depending on a social workers’ discretionary decision. Participation in such activities can thereafter continue as long as the individual is in need for social assistance or as long as the social worker decides. Sanctions in form of reductions or complete withdrawal of the social assistance can be made if an individual rejects participation or fail to comply with participation requirements. But there are no formal sanction rules and such decisions are in general based on discretionay practices at the local level. 2.4 Social insurance The social insurance system provides financial protection in case of sickness, disability and work injury in addition to parental leave benefits, allowances to families with children and housing allowance for low income people. It also covers old age pensions among many other benefits. Working people in Sweden are automatically insured for these benefits and eligibility is either based on residency or work in Sweden. Most of the benefits are employment and income based benefits and employers are responsible to pay a tax/social contribution to the government for every employee. Social insurance is administered by the Social Insurance Office (Försäkringskassan) and its 240 local social insurance offices. As mentioned above, the public debate in Sweden is currently significantly occupied with the high sick-leave levels and the failure to control the costs of the sickness insurance system. The discussions have mainly focused on the suspicion of a misuse of sickness benefits and the Social Insurance Office has been questioned for their failure to control people’s right to benefit and their failure to rehabilitate people back to the labour market. This has led to stricter rules and a stronger use of control instruments within the social insurance system. The number of people on sick-leave has decreased significantly during the last year. In 1990, 211 000 full-year equivalents received sickness benefits, thereafter declined the number of full-year equivalents until 1998. After 1998, the number started to increase again and in 2002 the number was 270 000, which equals 5.5 percent of the population. In February 2007, 216 000 people received sick-leave benefits (Social Insurance Office, 2007). 2.4.1 Sickness benefits According to the Sick Pay Act, everybody that have been employed for at least a month or have worked for fourteen days without a break, are entitled to sick pay from the employer for
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the first 14 days of their sickness. There is a one-day “waiting period” when no payment is paid to the individual. A doctor’s certificate is required after five days of sickness and it is this certificate that determines the illness and to what extent the individual can work or not. The Social Insurance Office has their own doctors that can provide a “second opinion”, whether the individual is capable of working or not. After 14 days, the employer must notify the Social Insurance Office that they must start to pay out public sickness benefit. The sickness benefits based on your previous income and is currently 80 percent of it with a maximum of 20 000 SEK (2160 Euro). Unemployed individuals that receive sickness benefits can receive a maximum of 486 SEK (53 Euro) per day. If the illness will prolong for more than one year, the Social Insurance Office can assess whether the individual will receive sickness compensation instead of sickness benefit, which is another form of sickness insurance for long-term sick. 2.4.2 Rehabilitation Allowance Someone who have suffered an illness or injury, or has been on sickness benefits for a long period of time, may get help with rehabilitation. Rehabilitation is a general term for everything that needs to be done to enable anyone who is sick or disable to start working again. The Social Insurance Office coordinates various rehabilitation measures. However, the responsibility for seeing that someone’s rehabilitation begins lays primarily on the individual and the employer. If the individual are unemployed, the responsibility for the rehabilitation is shared with the Employment Office and the Social Insurance Office. Someone who participates in work-oriented rehabilitation, such as occupational rehabilitation or training, may also be entitled to a rehabilitation allowance from the Social Insurance Office. 2.4.3 Disability Allowance People with mental and/or physical disabilities are not excluded from labour market policy programmes if they able to find a programme that fit their individual circumstances. For anyone who are taking part in a labour market programme, such as employment training, occupational rehabilitation, practical job experience, work at a computer centre, business start-up or development guarantee, should receive activity support instead of disability allowance. People with disabilities can also obtain a shelterd employment, often at the stateowned company Samhall that is assigned to provide a meaningful work and furthers personal development for diabled people. People with a disability have also the right to disability allowance from the Social Insurance Office. It is paid in three different levels depending on your need of assistance and how large your additional expenses are. 2.4.4 Activity Support For those who participate in a labour market policy programs, the Social Insurance Office is responsible to pay activity support instead of unemployment insurance. Activity support is paid out as a daily allowance based on the individual’s previous income. The maximum is 680 SEK (74 Euro) per day and the lowest amount is 320 SEK (43 Euro) per day. The activity support is often the same amount as the unemployment insurance and the individual must be a member of an unemployment fund in order to be entitled the maximum amount. For the first 200 days, the benefit equals a maximum of 80 percent of the previous income. This rate is curtailed to 70 percent for the next 100 days, and is ultimately reduced to 65 percent by the 451st day.
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Persons who receive activity support can also receive refunds for a number of expenses that are linked to the job search. For example, the cost of transport to a job interview, the purchase of special equipment, or occupational rehabilitation.
3. Swedish labour market policy programs Sweden has a long tradition of active labour market policies and represents a rather different position in regards to activation in comparison with many other European countries. Swedish labour market policies provide a number of programs and services that range from job matching between unemployed individuals and job vacancies to vocational training and highqualitative education programs. The labour market policy area is a policy field that the new government has target for a number of changes and reforms. The entire labour market policy organisation will be altered into a new authority in the next coming years in order to create efficiency, flexibility and streamlined organisation. The budget for labour market policy programs has also decreased with the intention to develop a less expensive. Many of these changes are not yet formalised or implemented and can therefore not be discussed in detailed in this paper. One of the main components of the labour market policy system is the public Employment Services and its 325 local offices. All unemployed persons are allowed to utilize the services at the Employment Services. The Employment Services are mainly responsible for the job matching process plus assigning individuals to labour market policy programs. They also draw up individual action plans, a document that should state the steps for each individual to find a regular job. The individual action plan should entail a detailed plan regarding what type of jobs the individual should apply for and whether he or she should participate in a labour market policy programs (National Labour Market Board, 2004, §7). The Employment Services also control if people are actively searching for jobs and report to the unemployment funds. The new government has also opened up for the possibility for other private actors to be involved in job matching between unemployed individuals and job vacancies. Beside the Employment Services, there is a wide range of labour market policy programs for unemployed individuals in Sweden. In 2006 almost 140 000 people participated different measures each month, which is three percent of the total work force and approximately one third of the unemployed (National Labour Market Board, 2007). 3.1 Active labour market policy programs – current status The labour market policy system in Sweden has been target for critique during the last couple of years (Lindvert, 2006). Program effects have been rather limited and many programs have been questioned for their failure to re-enter people to the regular labour market (Calmfors et al 2002). The new government has already conducted several reforms and a number of programs have either been phased out or changed and new programs have been implemented. The new programs have not yet been evaluated and it is here impossible to provide any results of their effects on labour market participation and/or unemployment levels. The new government has also been lowering the funding for labour market policy programs, which probably will result in fewer program slots, a smaller program selection and less investment in vocational training and education programs. Below is a description of the most important labour market programs:
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•
•
•
•
Job and Development Guarantee (replaced the Activity Guarantee in July 2007). Targets people that have been unemployed for 300 days and has lost their employment insurance. The individual must participate in a full-time activity, like job search, or in education in order to receive financial support (i.e. activity support). The program has three stages; stage one entail intensified and individual job search and prolongs for 150 days. Stage two entail practical training with an employer and stage three begins after 450 days of unemployment and entail a public work (e.g. workfare) in order to receive activity support. Job Guarantee for young people (starts in December 2007 and will replace the Municipal Youth Program and the Youth Guarantee): targets people between 20 and 25 years and entail intensified support, job-matching and follow-up for three months, followed with work experience placements and training if the individual is still unemployed. This program requires mandatory participation in order for the individual to receive activity support. Fresh-start-jobs (from January 2007): entails that employers that hire long-term unemployed (unemployed for more than one year) do not need to pay payroll taxes for the same period as the individual have been unemployed. If the individual is over 55 years old, the relief period for the employer is doubled. The program targets individuals that have been unemployed for one year and six months for those under 25 years old. More than 10 000 had a fresh-start job in June 2007. This is a voluntary program. Step-in jobs (from January 2007): entails that employers that hire an immigrant will receive a grant that pay a part of the payroll costs. A public-sector employer receives a grant amounting to 50 per cent of the payroll cost or no more than 500 SEK (54 Euro) per day. Private-sector employers and employers in public-service enterprises receive a grant of 75 per cent, or no more than 750 SEK (81 Euro) per day. The purpose of step-in jobs is to open up new opportunities for new arrivals in Sweden to obtain work as soon as possible after a residence permit is awarded. Step-in jobs require you to be able to read Swedish while working. 244 people has this far been assigned a step-in job. This is a voluntary program for long-term unemployed immigrants.
Among programs that have been part of the “old” system (before the new government came into power) that are still in place are, for example: •
• • •
Labour Market Policy Education: Education and training programs, especially vocational education and training in work sectors in which there is a need for employees. The effects of education and training programs have varied a lot depending on timing and target population. In the 1990s it was difficult to find job sectors in which here was a need for workers, and consequently, the effects of such programs were rather limited. Sheltered Public Work: targets mainly unemployed with socio-medical problems (e.g. persons with a substance abuse or mental health problems) and entails work rehabilitation. Sheltered Public Work has approximately 5500 participants per month. Business Start-up Support: entails financial income support for those who are unemployed and wants to start up their own business. Different labour market support programs for people with disabilities: Employment within a public company (e.g. Samhall).
3.2 Municipal activation policy programs
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Municipalities started to develop their own labour market programs during the recession in the 1990s. Such programs are called municipal activation programs in Sweden and targets unemployed social assistance recipients. The development of municipal activation measures was a consequence of the high influx of unemployed individuals to the social assistance system that did not qualify for unemployment insurance or other governmental income schemes (Salonen, 2001). Today, it is around 800 municipal activation programs in Swedish municipalities with around 13 000 participants. This is equivalent with 30 000 people per year and almost 12 percent of all social assistance recipients (Salonen & Ulmestig, 2004). Social assistance recipients should do want they can to become self-sufficient and the social services should support them to find an employment. The municipal social services are not required or empowered to provide work for the recipients, but they should collaborate with the Employment Services towards that end. How that works in practice varies a lot between municipalites as a result of the strong reliance on municipal autonomy. Hence, different local practices can result in very different requirements on behalf of the individual social assistance recipient (Thorén, 2005). There are very few formal regulations for municipal activation in the Social Service Act and participation activation measures is determined at the local level by social workers in the social assistance administration. Social workers determine whether and how long a social assistance recipient should do something in return for the benefit.5 Ulmestig (2007) has recently compared municipal activation policy with the governmental labour market policy system. He demonstrat different principles in the two systems in terms of clients’ rights, their scope of negotiation, and levels of economic reimbursement. Municipal activation programs are also marked by high level of both professional and local discretion, which has resulted in large program disparity and inconsistency in target groups, program goals, and length of time in program. 3.3 Governmental labour market policies versus municipal activation policies The activation policy system for the working population in Sweden can, in general, be divided into two parts. One governmental/national system for those supported by unemployment insurance funds and other nationally-based income benefit systems and one municipal system for social assistance recipients. Unemployed without unemployment insurance are often referred to means-tested social assistance provided at the local municipal level. Due to the different principles in unemployment insurance and social assistance, the Swedish welfare system rests, in many aspects, on a dual structure in regards to social safety. For those with a stable relationship to the labour market experience high levels of social security through unemployment insurance in contrast to marginal segments of the population that enjoy much less social security (see for example Marklund & Svallfors, 1987 and Lödemel, 1997 for a detailed discussion about the Nordic countries).
4. End Discussion
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Municipal social services are the local authority in each municipality (290 municipalities in Sweden). They are mainly responsible for social work services (e.g. child custody services, substance abuse services, mental health services) but they are also responsible for social assistance, which is the financial benefit scheme for those not entitled support from other social security systems. Social assistance is considered the last form of financial support in Sweden.
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The Swedish economy is currently flourishing and growing. Unemployment rates are decreasing, labour force participation increasing and the number of reported job vacancies are rising. But whether, or how much, this development is related to Swedish labour market policies and activation measures is difficult know. Nevertheless, it is probably correct to say that Sweden’s history of low unemployment levels and large labour force participation at least to some extent are related to the long tradition of active labour market policies. Altough the labour market is expanding, the challenge for Swedish welfare politics is how to include groups like immigrants and young people on the labour market in addition to lower long-term sickness leave. Both the old social democratic and the new right-wing government proposed and implemented labour market programs (e.g. step-in jobs) that targets these groups and improved. That is most likely necessary strategies in order to address this kind of difficulties. Although such measures cannot solve the entire problem, but can at least support a some individuals to enter the labour market. For long-term sickness, better rehabilitation opportunities and a good support system is necessary to improve their difficulties and prevent more persistent social exclusion.
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References: Calmfors, Lars, Anders Forslund & Maria Hemström (2001) “Does active labour market policy work? Lessons from the Swedish experience”. Swedish economic policy review 85 (2001) 61-124. Esping-Andersen, Gösta (1990) The Tree Worlds of Welfare Capitalism. Cambridge: Polity Press. Esser, Ingrid (2005) Why work? Comparative studies on Welfare Regimes and individuals’ work orientation. Stockholm: Stockholm University. Fritzell, Johan, Michael Gähler & Magnus Nermo (2007) ”Vad hände med 1990-talets stora förlorargrupper? Välfärd och ofärd under 2000-talet”. Socialvetenskaplig tidskrift, vol. 14, no 2-3, pp. 110-133. Junestav, Malin (2004) Arbetslinjer i svensk socialpolitisk debatt och lagstiftning 1930-2001. Stockholm: Elanders Gotab. Lindvert, Jessica (2006) Ihålig arbetsmarknadspolitik? Organisering och legitimering igår och idag. Umeå: Boréa Bokförlag. Lödemel, Ivar (1997) Pisken i arbeidslinja. Om iverksetjinga av arbeid for socialhjelp. Oslo: Fafo Marklund, Staffan & Stefan Svallfors (1987) Dual Welfare – segmentation and work enforcement in the Swedish welfare system. Research Reports 94. Umeå: Sociologiska institutionen. National Board of Health and Social Welfare (2007) Ekonomiskt bistånd årsstatistik 200., Socialtjänst 2007:8, http://www.socialstyrelsen.se/NR/rdonlyres/2010005A-3BB7-4C8C-94D43E201B84D531/7991/2007448_rev3.pdf National Labour Market Board (2004) Arbetsmarknadsstyrelsens föreskrifter om individuella handlingsplaner. (AMSFS 2000:4). National Labour Market Board (2007) http://www.ams.se/admin/Documents/ams/arbdata/arblos/2007/arb0710r.pdf Salonen, Tapio (2001) Om outsiders och aktivering i svensk arbetsmarknadspolitik. In Den glömda krisen - om ett Sverige som går isär. Agoras årsbok. Stockholm: Agora. Salonen, Tapio & Rickard Ulmestig (2004) Nedersta trappsteget. En studie om kommunal aktivering. Växjö Universitet: Rapportserie i Social arbete no 001 2004. Social Insurance Office (2007) http://statistik.forsakringskassan.se/portal/page?_pageid=47,1&_dad=portal&_schema=PORTAL Statistics Sweden (2003) Sjukfrånvarande enligt SCB och sjukskrivna enligt RFV. Rapport 2003:4, http://www.scb.se/statistik/AM/AM0201/1998I02/AM0201_1998I02_BR_AM76ST0304.pdf Statistics Sweden (2007) http://www.scb.se/templates/pressinfo____211368.asp Statistics Sweden, Labour Force Survey (2007a) http://www.scb.se/templates/Product____23262.asp, Statistics Sweden, Labour Force Survey (2007b) http://www.scb.se/templates/pressinfo____217710.asp Swedish Unemployment Board (2007) http://www.iaf.se/iaftemplates/Page.aspx?id=193
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Thorén, Katarina H. (2005) Municipal Activation Policy: A case study of the practical work with unemployed social assistance recipients. Uppsala: IFAU. Ulmestig, Rickard (2007) På gränsen till fattigvård. En studie om arbetsmarknadspolitik och socialbidrag. Lund: Lund Dissertations in Social Work. Wadensjö, Eskil (2007) “Activation Policy in Sweden” in Pascual, A.S., Magnusson, L. (eds.) Reshaping Welfare States and Activation Regimes in Europe, Work and Society, Vol. 54, p.127143.
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APPENDIX A: Unemployment and labour market participation between 98/99 and 2004/2005 for the total population, youth 20-29, immigrants and single mothers
Year Labour Force Participation Unemployment Long-term unemployment
Total Population between 20-65 years Women Men 99/98 04/05 99/98 04/05 74 76* 80 80
Youth between 20-29 years Women Men 99/98 04/05 99/98 04/05 60 64 70 69
Immigrants A Women 99/98 04/05 67 67
Immigrants B
Men 99/98 04/05 72 76
Women 99/98 04/05 52 59*
Single Mothers
Men 99/98 04/05 60 64
99/98 74
04/05 73
6
5*
7
6
10
8
10
10
9
6
13
9
11
6*
16
11
14
8*
4
3*
4
3*
4
2*
4
4
7
5
9
4
6
4
12
6*
8
4
> 6 months
Immigrants A: born in Western Europe, North America or Australia Immigrants B: born in Africa, Asia, Eastern Europe or South America * The difference between 99/98 and 04/05 is significant at the 5 percent level. Source: Fritzell et al., 2007
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Katarina H. Thorén 2007: Profession: University Adjunct at Växjö University in Sweden and PhD Candidate in Social Work at School of Social Service Administration at University of Chicago in the U.S. Main research topic: Comparative social policy and welfare state policy, activation policy, labour market policy, social assistance policy and programs, street-level implementation and organizational practices of social policy. Publications: Thorén, Katarina H., E. Brodkin & C. Fuqua (2002) “Contracting Welfare Reform: Uncertainties of Capacity-Building Within Disjointed Federalism,” Joint Center for Poverty Research (JCPR) Working Paper Thorén, Katarina. H. (2005) Municipal Activation Policy: A Case Study of the Practical Work with Unemployed Social Assistance Recipients. IFAU-rapport, 2005:20, IFAU, Uppsala Thorén, Katarina. H. (2005) Kommunal aktiveringspolitik: En fallstudie av det praktiska arbetet med arbetslösa socialbidragstagare, IFAU-rapport, 2005:11, IFAU, Uppsala Thorén, Katarina. H. (2006) ”Kommunal aktiveringspolitik: En fallstudie av det praktiska arbetet med arbetslösa socialbidragstagare” i Arbetsmarknad & Arbetsliv, årgång 12, nr 2, 2006 Thorén, Katarina .H., V. Ekström & P. Redlund (2006), ”Vem bryr sig om arbetslösa socialbidragstagares villkor” i Socionomen, nr 6, 2006 Thorén, Katarina .H., T. Salonen & R. Ulmestig et al (2007), ‘The challenges of decentralized delivery of services. The scope for active citizenship in Swedish and Norwegian activation policies’, in Hvinden & Johansson (eds.), Citizenship in Nordic welfare states: Dynamics of choice, duties and participation in a changing Europe. London: Routledge Thorén, Katarina .H., R. Ulmestig & P. Köhler (2007)…….Activation Policy in Sweden. Ask Regina Konle-Seidl for correct reference.
