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Ministry of Employment Sweden Swedish Labour Market Policy for Youth Hillevi Engström, Minister for Employment Youth Forum April 26, 2013

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Page 1: Ministry of Employment Sweden Swedish Labour Market Policy for Youth Hillevi Engström, Minister for Employment Youth Forum April 26, 2013

Ministry of Employment Sweden

Swedish Labour Market Policy for Youth

Hillevi Engström, Minister for EmploymentYouth Forum

April 26, 2013

Page 2: Ministry of Employment Sweden Swedish Labour Market Policy for Youth Hillevi Engström, Minister for Employment Youth Forum April 26, 2013

Ministry of Employment Sweden

Youth Unemployment Rate, 15–24 years

Source: AKU, SCB.

0

5

10

15

20

25

30

0

5

10

15

20

25

30

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

PrecentPrecent

Unemployed

Full time students looking for work

Page 3: Ministry of Employment Sweden Swedish Labour Market Policy for Youth Hillevi Engström, Minister for Employment Youth Forum April 26, 2013

Ministry of Employment Sweden

Youth Unemployment Rate, 15–24 years

Source: Eurostat.

0

10

20

30

40

50

60Pe

rcen

t

2012Q4

EU27

Page 4: Ministry of Employment Sweden Swedish Labour Market Policy for Youth Hillevi Engström, Minister for Employment Youth Forum April 26, 2013

Ministry of Employment Sweden

Long-term Unemployment Rate, >12 months

(% of all unemployed), 15–24 years

Source: Eurostat.

0

10

20

30

40

50

60Pe

rcen

t

2012Q4

EU27

Page 5: Ministry of Employment Sweden Swedish Labour Market Policy for Youth Hillevi Engström, Minister for Employment Youth Forum April 26, 2013

Ministry of Employment Sweden

Recent reforms aim to:

Increase labour supply

Increaselabour demand

Increasematching

”Make work pay” “Make it easier & less costly to employ”

”Get the right person at the right place”

Page 6: Ministry of Employment Sweden Swedish Labour Market Policy for Youth Hillevi Engström, Minister for Employment Youth Forum April 26, 2013

Ministry of Employment Sweden

Recent reforms for youth – labour demand

by making it easier to employ

• Reduced employer’s social security contribution for youth under 26 years of age

• ’New start job’ provides tax relief targeted at long term unemployed youth

• Reduction of VAT on restaurants from January 2012

• General temporary employment

Page 7: Ministry of Employment Sweden Swedish Labour Market Policy for Youth Hillevi Engström, Minister for Employment Youth Forum April 26, 2013

Ministry of Employment Sweden

Recent reforms for youth – matching-process

• Youth job guarantee scheme

• Individual action plans and coaching

• Increase education: – Folk high school initiative

– Higher study grant

Page 8: Ministry of Employment Sweden Swedish Labour Market Policy for Youth Hillevi Engström, Minister for Employment Youth Forum April 26, 2013

Ministry of Employment Sweden

Budget Bill 2013: Youth package – € 950 million during 2013–2016

• Strengthen the link between education and employment

• Strengthen vocational education

• Increased number of places in regular education

• Prevent young people from becoming long term unemployed

• Intensified employment service activities prior to entering the job guarantee scheme

Page 9: Ministry of Employment Sweden Swedish Labour Market Policy for Youth Hillevi Engström, Minister for Employment Youth Forum April 26, 2013

Ministry of Employment Sweden

Budget Bill 2013: Increased opportunities for young people• Strengthening employment services

prior to entering the job guarantee

• Strengthening of the ‘New Start job’

• Resettlement benefit to long-term unemployed

Page 10: Ministry of Employment Sweden Swedish Labour Market Policy for Youth Hillevi Engström, Minister for Employment Youth Forum April 26, 2013

Ministry of Employment Sweden

’Job pact’

• Tripartite discussions => Improve adaptability of the labour market

• Social partners – agreements on introductory agreements for young workers

• Aim – to expand agreements by employment subsidies