Observation (CEACR) - adopted 2003, published 92nd ILC session (2004)

Employment Policy Convention, 1964 (No. 122) - Sweden (Ratification: 1965)

1. The Committee notes the information contained in the Government’s detailed report for the period ending in June 2002, as well as Sweden’s Action Plan for Employment 2002, attached.

2. Articles 1 and 2 of the Convention. The Government indicates that its target of reducing unemployment by half between 1997 and 2000 - from 8 to 4 per cent - was achieved in October 2000. Another target set by the Government concerns employment for persons between the ages of 20 and 64, which is to be at least 80 per cent of the corresponding workforce in 2004. The Committee notes that the Government judges achievement of this target to be within reach and trusts that it will be able to report on this important outcome in its next report.

3. The Committee further notes the information on the labour market supplied by the Government in its report, which supplemented data published by the OECD, shows that during the period in question the employment situation improved. Initial data from 2003 however, suggest a lower level of economic activity and an increase in unemployment. The number unemployed in April 2003 was 201,000 persons, which is an increase of 37,000 persons compared to April 2002. Unemployment seems to be increasing during the first part of 2003 to the levels reached in 2000. The unemployment rate at 4.8 per cent in September 2003 was approximately the same as in September 2000. During the reporting period manufacturing sector employment has declined, while public sector employment, which accounts for roughly a third of all jobs in Sweden has continued to increase. Male employment has also declined while female employment has increased. The Committee would appreciate continuing to receive detailed disaggregated data on labour market trends.

4. The Government states it has set targets for the highest acceptable rate of long-term unemployed and long-term registered at the Public Employment Service. For young people, the aim is that no youth should be unemployed for more than 100 days. The Unemployment Insurance has been reformed and the requirements on the efficiency of the labour market programmes have increased. A measure called the "Activity Guarantee" has been introduced in August 2000 with the aim of putting an end to the vicious cycle between labour market measures and unemployment benefit. For the long-term unemployed an extended recruitment incentive has also been developed. Please continue to supply information on the success of these programmes and the attainment of these targets.

5. The Government states that it has encountered difficulties in recruiting suitable participants among the unemployed for training programmes matching the requirements of the job market. To help provide the labour market with the skills it needs in the fields where manpower shortages are feared, an experimental scheme of bottleneck training for persons already employed was launched. The Committee asks the Government to keep it informed of other developments concerning training programmes and on the outcomes of this experimental scheme.

6. In reply to the Committee’s previous comments, the Government explains that disadvantaged groups are prioritized within the framework of all labour market programmes including those dealing with vocational rehabilitation, hiring support, work experience and grants for entrepreneurial start-ups. Additionally, members of disadvantaged groups receive special attention through the "Activity Guarantee". This measure was introduced in August 2000 and is intended for those who are or risk becoming long-term unemployed. The scheme is based on organized jobseeker activities in tutored groups. Please continue to supply information on the impact of these special programmes on employment promotion for the target groups. Please also provide, if available, the evaluation of the "pattern-breaker projects" to broaden the employment choices of each sex.

7. The Government indicates that to promote employment among the occupationally handicapped it has sought to introduce a series of measures including, inter alia, wage subsidies for employers hiring persons with reduced work capacity, state grants for arranging sheltered work for unemployed persons with occupational disabilities, individual support for jobseekers with a functional impairment, as well as different types of grants to cover the material necessary for the occupationally handicapped to perform a given profession. The Committee would appreciate receiving any available information on the results achieved in terms of long-term integration of persons with disabilities in the labour market. The Government may wish to refer to this matter in the reports due in 2004 on the application of Conventions Nos. 122 and 159.