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Focusing on the most vulnerable Modernization of social protection and supporting activation

Focusing on the most vulnerable Modernization of social protection and supporting activation. Maria Hemström Ministry of Employment Sweden. The largest Swedish trade union Magazine August 29, 2008. EMPLOYMENT NOW ALL TIME HIGH. EMPLOYED. EMPLOYED. EMPLOYED. UNEMPLOYED. EMPLOYED.

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Focusing on the most vulnerable Modernization of social protection and supporting activation

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  1. Focusing on the most vulnerableModernization of social protection and supporting activation Maria Hemström Ministry of Employment Sweden

  2. The largest Swedish trade union MagazineAugust 29, 2008 EMPLOYMENT NOW ALL TIME HIGH

  3. EMPLOYED

  4. EMPLOYED

  5. EMPLOYED

  6. UNEMPLOYED EMPLOYED

  7. UNEMPLOYED EMPLOYED

  8. INACTIVE UNEMPLOYED EMPLOYED ”the most vulnerable” BENEFITRECEPIENTS

  9. Consequences of the Swedish crises in the 1990’s(Q4, 16-64, %) 1990 1993 Unemployment 1,5 8,3 Labor force participation 84,5 77,7

  10. Consequences of the Swedish crises in the 1990’s(Q4, 16-64, %) 1990 1993 2005 Unemployment 1,5 8,3 5,4 Labor force participation 84,5 77,7 78,0

  11. INACTIVE UNEMPLOYED EMPLOYED ”the most vulnerable” BENEFITRECEPIENTS

  12. INACTIVE UNEMPLOYED EMPLOYED ”the most vulnerable” BENEFITRECEPIENTS

  13. Challenges Poverty traps A compressed wage-structure Search-activity decreases with time spent in unemployment

  14. Challenges Poverty traps Need to make work pay A compressed wage-structure Search-activity decreases with time spent in unemployment

  15. Challenges Poverty traps Need to make work pay A compressed wage-structure Need to make it less expensive to employ Search-activity decreases with time spent in unemployment

  16. Challenges Poverty traps Need to make work pay A compressed wage-structure Need to make it less expensive to employ Search-activity decreases with time spent in unemployment Need to support activation

  17. Recent changes Changes in unemployment- and sickness-benefits New measures targeted at unemployed at the margin of the labour market

  18. The UNEMPLOYMENT INSURANCE Benefit level(% of previous income) PREVIOUS SYSTEM 80 % 300 600 Time in unemployment(No of days)

  19. The UNEMPLOYMENT INSURANCE Benefit level(% of previous income) PREVIOUS SYSTEM 80 % 70 % CURRENT SYSTEM 65 % 200 300 Time in unemployment(No of days)

  20. The UNEMPLOYMENT INSURANCE Benefit level(% of previous income) PREVIOUS SYSTEM 80 % 70 % CURRENT SYSTEM 65 % 200 300 Time in unemployment(No of days) The job & -development guarantee

  21. The UNEMPLOYMENT INSURANCE Benefit level(% of previous income) PREVIOUS SYSTEM 80 % 70 % CURRENT SYSTEM 65 % Phase 1 & 2 200 300 750 Time in unemployment(No of days) The job & -development guarantee

  22. The UNEMPLOYMENT INSURANCE Benefit level(% of previous income) PREVIOUS SYSTEM 80 % 70 % CURRENT SYSTEM 65 % Phase 1 & 2 Phase 3 200 300 750 Time in unemployment(No of days) The job & -development guarantee

  23. The UNEMPLOYMENT INSURANCE Benefit level(% of previous income) PREVIOUS SYSTEM 80 % 70 % CURRENT SYSTEM 65 % Phase 1 & 2 Phase 3 200 300 750 Time in unemployment(No of days) The job & -development guarantee New start jobsStep in jobs

  24. The SICKNESS INSURANCE Benefit level(% of previous income) PREVIOUS SYSTEM 80 % Time on sick leave(No of months)

  25. The SICKNESS INSURANCE Benefit level(% of previous income) PREVIOUS SYSTEM 80 % CURRENT SYSTEM Time on sick leave(No of months)

  26. The SICKNESS INSURANCE Benefit level(% of previous income) PREVIOUS SYSTEM 80 % CURRENT SYSTEM Is there anything else you can do at: your present employer? 3 Time on sick leave(No of months)

  27. The SICKNESS INSURANCE Benefit level(% of previous income) PREVIOUS SYSTEM 80 % CURRENT SYSTEM Is there anything else you can do at: your present employer? another employer? 3 6 12 Time on sick leave(No of months)

  28. The SICKNESS INSURANCE Benefit level(% of previous income) PREVIOUS SYSTEM 80 % 75 % CURRENT SYSTEM Is there anything else you can do at: your present employer? another employer? 3 6 12 Time on sick leave(No of months)

  29. The SICKNESS INSURANCE Benefit level(% of previous income) PREVIOUS SYSTEM 80 % 75 % CURRENT SYSTEM Is there anything else you can do at: your present employer? another employer? 36 3 6 12 Time on sick leave(No of months)

  30. Conclusions The current crisis will be followed by a demographic challenge We need to create incentives and opportunities that will make people stay in and reenter to the labour market

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