Observation (CEACR) - adopted 1995, published 83rd ILC session (1996)

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

1. The Committee notes the Government's report for the period ending June 1994. The Government emphasizes the serious nature of the recession experienced by the country since the beginning of the decade, which has resulted in the loss of over 500,000 jobs and a steep rise in the unemployment rate to unprecedented levels. According to OECD data, the contraction of employment was particularly brutal in 1992 (-4.1 per cent) and 1993 (-6.8 per cent). Despite a significant decrease in the active population, which fell by 1.8 per cent in 1992 and 3.3 per cent in 1993, the unemployment rate reached over 8 per cent in 1993. A modest recovery of growth made it possible to reduce the rate to 7.5 per cent at the end of 1994. However, the OECD notes the low level of creation of regular full-time employment over the most recent period. Furthermore, the proportion of long-term unemployment rose once again, to reach 40 per cent of total unemployment in 1994.

2. The Government considers that this rapid deterioration in the employment situation has to be mainly attributed to the rapid rise in wages and prices during the 1980s, which jeopardized the competitiveness of the economy, while the budget deficit was increasing sharply and interest rates were rising. It states that the flotation of the currency and the measures decided upon in the context of the crisis programme adopted in the autumn of 1992 should improve the competitiveness of exports, but that domestic demand will remain low. With reference to its previous observation, in which it noted the priority accorded by the Government to containing inflation and restoring the balance in public finances, the Committee would be grateful if the Government would indicate in its next report the manner in which the implementation of the main economic policy measures contributes to the promotion "as a major goal" of full, productive and freely chosen employment.

3. The Government also states that active labour market policy measures remain the principal instrument for combating unemployment, in the framework of its strategy of "work for everyone". It emphasizes that these measures give priority to the integration of the unemployed into the normal labour market or, if that is not possible, in public employment programmes. The Committee notes in this respect the details provided in response to its request for information on the conditions governing the implementation of the programme of practical on-the-job training for unemployed persons under 25 years of age: participation in this programme is conditional upon the conclusion of a written agreement between the employment service, the employer and the trainee, while the appropriate trade union organization has to be consulted. Noting that this programme covered an average of 56,000 participants during the reference period, the Committee would be grateful if the Government would provide any available evaluation of the results achieved in terms of long-term integration into employment.

4. With reference to its previous observation, the Committee notes the statement to the effect that, in the context of the new consultation procedures established in 1993, the organizations of employers and workers are represented on an advisory council, which comments on the decisions included on the agenda of the Board of the Swedish National Labour Market Administration (AMS). The Committee recalls in this respect that the consultations required by Article 3 of the Convention should cover all the aspects of economic and social policy which have an impact on employment. It requests the Government to indicate any measure that has been taken or is envisaged to give full effect to this provision, the importance of which cannot be over-emphasized in a context of high unemployment.