The Swedish labour market:

1. The Swedish Public Employment Service and Regional Labour Market MonitoringJosef LannemyrVictor Tanaka14 september 2010

2. The Swedish labour market: Brief historical background

3. From poor agrarian country to rich indusrialized nation • Between 1850 and 1970 Sweden had the highest economic growth rate in the world (next to Japan) • 1850 -1950: • Rationalizations of agricultural methods • Public school reform 1842 • Rapid population growth • City enlargements • The economic post – war boom

4. The Swedish Model: • A large privately owned industrial sector • A large public sector financed by taxes • A large trade union movement • The state playing an active role in labour market policies • Ambitions to achieve an even distribution of income and wealth • ”The middle way”

5. 1950s to 60s – The golden age • 1960-65 yearly GDP-growth average of 5.3 percent and producitivity growth average of 5.6 percent • Restructuring model with active labour market policy (Rehn-Meidner) • Low unemployment, around 2 percent

7. Structrual change in the labour market • Problems became obvious during oil crisis 1973-74 • Cost crisis – decreased competitiveness • (shipyard, textile, steel) • Internationally dependent => dramatic shifts

8. 1990s A bursting financial bubble • The swedish financial crisis • 80s deregulation of the financial market – especially loan restrictions • Rapid increase in lending focusing on the real estate sector • Public finances under strain • Mass unemployment (in a swedish perspective) • OECD – average since 1993

10. Unemployment rate, Sweden and Hungary 1991-2009 (OECD, harmonised unemployment rates, ILO defintion)

11. 90s and 2000s • EU membership 1995 • Dot-com buble 2000 – mild downturn • Death of the Swedish model? • Large public sector • High income taxes • Small business sector (than EU and OECD average)

12. Present situation • Sweden has an unemployment rate that is below EU-27. • During the last couple of years Sweden has had an unemployment rate at about 6 percent. • However, during 2009 the unemployment rate rose to over 8 percent, largely because of the international economic recession • New Government

13. Statistical snapshots

15. Unemployment in EU EU. July 2010, Harmonized unemployment rate ; Total Source: EU LFS data

16. Youth unemployment in EU EU. July 2010, Harmonized unemployment rate - age class 15-24; Total Source: EU LFS data

20. The Swedish Public Employment Service Mission

21. The Swedish Public Employment Service Mission: • Improve the functioning of the labour market (no distortion of competition)

22. The Swedish Public Employment Service Mission: • Improve the functioning of the labour market (no distortion of competition) • Give priority to weak groups

23. The Swedish Public Employment Service Mission: • Improve the functioning of the labour market (no distortion of competition) • Give priority to weak groups • Equal service across the country

24. The Swedish Public Employment Service Mission: • Improve the functioning of the labour market (no distortion of competition) • Give priority to weak groups • Equal service across the country • Promote geographic and professional mobility

25. The Swedish Public Employment Service Mission (continued): • Promote diversity/plurality and work against discrimination

26. The Swedish Public Employment Service In numbers

27. The Swedish Public Employment Service In numbers: • Government budget for Labour market of almost 10 000 million USD

28. The Swedish Public Employment Service In numbers: • Government budget for Labour market of almost 10 000 million USD, of which about • 8,5 % on management and administration costs;

29. The Swedish Public Employment Service In numbers: • Government budget for Labour market of almost 10 000 million USD, of which about • 8,5 % on management and administration costs; • 53,5 % on benefits;

30. High benefits and compensation rates

31. The Swedish Public Employment Service In numbers: • Government budget for Labour market of almost 10 000 million USD, of which about • 8,5 % on management and administration costs; • 53,5 % on benefits; • 10,5 % on job market programs; and

32. The Swedish Public Employment Service In numbers: • Government budget for Labour market of almost 10 000 million USD, of which about • 8,5 % on management and administration costs; • 53,5 % on benefits; • 10,5 % on job market programs; and • 23,1 % on employment subsidies.

33. Public expenditure on labour market policy

34. The Swedish Public Employment Service In numbers (continued): • More than 12 000 employees

35. The Swedish Public Employment Service In numbers (continued): • More than 12 000 employees • 30 % of all vacancies

36. The Swedish Public Employment Service In numbers (continued): • More than 12 000 employees • 30 % of all vacancies • 177 000 in job market programs (3,6 %)

37. The Swedish Public Employment Service In numbers (continued): • More than 12 000 employees • 30 % of all vacancies • 177 000 in job market programs (3,6 %) • 224 000 unemployed (4,6 %)

38. The Swedish Public Employment service: The forecasting system

39. The Swedish Public Employment service: The forecasting system Purpose

40. The Swedish Public Employment service: The forecasting system Purpose: • From the beginning to satisfy regional needs (employers)

41. The Swedish Public Employment service: The forecasting system Purpose: • From the beginning to satisfy regional needs (employers) • Add value to the whole organisation

42. The Swedish Public Employment service: The forecasting system Purpose: • From the beginning to satisfy regional needs (employers) • Add value to the whole organisation • ”Targeted” groups: unemployed, other job seekers, parliament, universities, etc.

43. The Swedish Public Employment service: The forecasting system Purpose (continued): • Provide job market information

44. The Swedish Public Employment service: The forecasting system Purpose (continued): • Provide job market information in order to • improve matching (employment offices)

45. The Swedish Public Employment service: The forecasting system Purpose (continued): • Provide job market information in order to • improve matching (employment offices) • craft labour market policies

46. The Swedish Public Employment service: The forecasting system Purpose (continued): • Provide job market information in order to • improve matching (employment offices) • craft labour market policies • plan labour market programs

47. The Swedish Public Employment service: The forecasting system Purpose (continued): • Provide job market information in order to • improve matching (employment offices) • craft labour market policies • plan labour market programs • plan budget

48. The Swedish Public Employment service: The forecasting system Purpose (continued): • Provide job market information in order to • improve matching (employment offices) • craft labour market policies • plan labour market programs • plan budget • make individual choices (job seekers)

49. The Swedish Public Employment service: The forecasting system Method: • Questionnaries

50. The Swedish Public Employment service: The forecasting system Method: • Questionnaries • Private sector: representative sample (Statistics Sweden; stratified according to counties, industry, and workplace-size)