Direct Request (CEACR) - adopted 2011, published 101st ILC session (2012)

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

Articles 1, 2 and 3 of the Convention. Active labour market policies. Consultation with the social partners. The Committee notes the Government’s report for the period ending in June 2010 including replies provided to the 2009 observation. The Government states that since its last report there has been a significant shift in employment due to the financial crisis and the following turmoil in the global market. Despite the turmoil, the Government’s long-term strategy has remained focused on: making it worthwhile to work; making it easier and less costly to take on new employees; and improving job matching on the labour market. Following the economic downturn, the number of unemployed increased significantly during 2009. On average, 408,000 people were unemployed in 2009; an increase of 104,000 persons compared to the previous year. When compared to 2008 figures, the unemployment rate increased by 2.1 percentage points to 8.3 per cent in 2009. The Labour Force Survey conducted by Statistics Sweden provided that the unemployment rate was 7.9 per cent in May 2011. The Government indicates that the aim of its labour market policy is full employment. It states that a number of permanent reforms have been made with the aim of increasing the labour supply in the long run and enhancing the competitiveness of those most detached from the labour market. The Committee notes that the measures taken by the Government include the in-work tax credit, which reduces income taxes for all wage earners, changes in the unemployment and sickness insurances, the introduction of new start jobs, which lower the employer’s costs when they hire those most detached from the labour market. The Government further indicates that the most important task of labour market policy during an economic downturn is to prevent people from being unemployed for a long period of time. It has therefore increased the support for the short-term unemployed with a focus on more work experience places and by encouraging them to actively search for new employment. As part of its effort to transform and streamline labour market policy, the Government has reformed the National Labour Market Board (AMS) and the County Labour Market Boards. A new authority was established in 2008 with a view to improving opportunities for control and enhancing operational efficiency. The Committee invites the Government to provide in its next report information on the effect of the reforms on employment generation. It also requests the Government to include information on how the views expressed by the social partners have been taken into account in formulating and enlisting support for the policies undertaken.

Women, youth, long-term unemployed, immigrants and workers with disabilities. The Government reports that unemployment periods in Sweden are generally relatively short. However, long-term unemployment (defined as over 27 weeks) increased significantly during the economic downturn, and across the entire labour market. The number of long-term unemployed increased from 72,300 in 2008, to 144,500 in 2009, reaching seasonally adjusted monthly figures of almost 150,000 in the beginning of 2010. The Committee notes that the unemployment rate among the youth (age 15–24) was 25 per cent in 2009. The Labour Force Survey provided that, in May 2011, the youth unemployment rate was 25.9 per cent. It notes the range of measures implemented by the Government for fighting youth unemployment. In this regard, the Government has halved the social contributions for all people under the age of 26 in order to make it easier for young people to enter the labour market and get work experience. The result is a substantial reduction in the costs of employing young persons. Furthermore, in order to make it more attractive for companies to retain and employ older workers, the special employer’s contribution has been abolished for people who are 65 or over. With regard to newly arrived immigrants, the Government indicates that the Public Employment Service has been given increased responsibility aimed at accelerating their integration into the labour market. The Committee would welcome continuing to receive detailed information on the efforts made to improve the employment situation of women, youth, long-term unemployed, immigrants and workers with disabilities.

Sickness insurance reform. The Government reports that in the past decade the country has experienced extensive labour market exclusion which is primarily connected to the high level of sickness absence as seen from an international perspective. Sweden had one of the highest sickness absence rates in the OECD. In October 2006, 554,000 people were receiving sickness or activity compensation, which included 80,000 people on sick leave for more than one year. The Committee notes that the Government has taken a number of measures to bring about prompt action with the aim of counteracting long-term sickness absence. A rehabilitation chain with fixed time limits for testing work capacity has been introduced in July 2008. The Government has also taken measures to make it easier to return to work after a long absence due to illness. The Committee notes that the Government’s policy objective is a long-term, stable and low level of sickness absence. The Committee invites the Government to include in its next report information on the effects of the sickness insurance reform on employment.