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

Observation (CEACR) - adopted 2015, published 105th ILC session (2016)

Articles 1, 2 and 3 of the Convention. Active labour market measures. Consultation with the social partners. The Government indicates in its detailed and comprehensive report that Sweden is considered to have a good chance of achieving the ambitious goal of an employment rate well over 80 per cent among people in the age group 20–64 years within the framework of Europe 2020. However, unemployment remains high (almost 8 per cent) and long-term unemployment is higher than before the financial crisis. The Committee notes that the objective of the Government’s employment policy is therefore to reduce unemployment so that it is the lowest in the EU by 2020. While unemployment is high, the number of vacancies is at a historically high level. Moreover, the Government is of the view that the social partners also have a responsibility to stop unemployment from becoming entrenched, and also for the functioning of the labour market more generally. For example, the social partners have an important role in terms of both making it easier for groups with a weak attachment to the labour market to become established and facilitating opportunities for skills development and retraining later in working life. The Committee notes that, to give unemployed people opportunities for education, but also to prevent a lack of vocationally trained people, the Government is, among other things, focusing on adult vocational training at upper secondary school level in the municipal adult education. One area of focus in the Social Fund Programme for the period 2014–20 is skills development for the employed and improving access and quality in work-based learning in secondary schools and adult education. In reply to previous comments with regard to the sickness insurance reforms of Sweden and its consequences on employment, the Government indicates that the level of sickness absence, which in the early 2000s was very high compared with countries with similar systems, has gone down and is now on a level equal to comparable countries. The Committee requests the Government to continue to provide information on the impact of its labour market measures on sustainable and productive employment generation. The Committee also requests the Government to continue to include information on measures taken in the area of education and training policies and on their relation to prospective employment opportunities and on the consultations held with the social partners on the matters covered by the Convention.

Youth, long-term unemployed and persons with disabilities. The Government indicates that the number of long-term unemployed people has continued to increase since 2012. Around half of the people registered with the Swedish Public Employment Service have been unemployed for over a year. Moreover, the Government adds that there are still a lot of people, mainly women, who work part time involuntarily. The Committee notes that the Job and Development Guarantee, a labour market policy programme, contains individually designed measures for people who have been outside the labour market for a long period of time. Youth unemployment was measured at 23 per cent in 2014 and thus represented a considerable percentage of total unemployment. Unemployment among young people without an upper secondary education was at 40 per cent in 2014, compared with 16 per cent for young people who have a complete upper secondary education. The Committee notes that almost half of youth unemployment represents students who are studying full time and also looking for work. The Government indicates that the existence of temporary contracts may be a stepping stone into the labour market for young people and other entrants, but adds that it is important not to get stuck in this type of employment for a long period of time. Measures that increase the possibilities of combining work or work experience with education are therefore important in reducing unemployment among young people while also aiming to alleviate shortages in the labour market. The Committee notes that youth measures include education contracts and trainee job wage subsidies. The EU youth employment initiative (YEI) for the years 2014–18 is also being implemented in Sweden as part of the national Social Fund Programme. This initiative will complement and expand the existing labour market policy measures for young people. With respect to persons with disabilities, the Committee notes that the employment rate among persons with disabilities and a reduced capacity to work has increased, from 50 per cent in 2008 to 55 per cent in 2014. However, the gap in employment and unemployment rates between persons with disabilities and others remains. The Committee requests the Government to continue to provide information on the impact of employment measures targeting women, youth, long-term unemployed and persons with disabilities.

Immigrants. The Government indicates that people born abroad include labour immigrants, refugees and their close relatives. In 2014, unemployment in the age group 25–74 years was at 20 per cent among adults born outside Europe, which can be compared with just under 4 per cent for adults born in Sweden. A set of new measures targeted towards integrating newly arrived migrants into the labour market took effect in August 2014, including the introduction of conditionality upon acceptance of a suitable job offer. The Committee notes that consultations with the social partners were initiated on new measures to speed up transition from arrival to getting established in the Swedish labour market. The Committee requests the Government to continue to provide information on the impact of measures taken to improve the employment situation of immigrants, including updated information on the rates of unemployment for adults born outside Europe, the sector of the economy in which they work, and other relevant information.

Observation (CEACR) - adopted 2012, published 102nd ILC session (2013)

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 2012, including replies provided to previous comments formulated in 2011. The Government states that since its last report the labour market has gradually improved in Sweden. It reports that the positive development seen in the labour market over the past two years can be attributed to both the recovery and Government reforms. It indicates that the focus of Government reforms is on strengthening the conditions for groups with a weak foothold in the labour market, such as young people, people with a foreign background and other groups with high long-term unemployment, to obtain work. Signs that the reforms have improved the labour market’s functioning include labour force participation and employment levels, which have increased among young, middle-aged and older people. The Committee notes that the labour force participation rate was 71 per cent in 2011. Compared to 2010, the rate increased among women by 0.6 percentage points to 68 per cent, while the corresponding rate for men was 73.9 per cent. Despite these positive developments, the Government indicates that resource utilization in the labour market is low and traces of the financial crisis are still evident. On average, the number of unemployed persons was 378,000 in 2011, a decrease of 38,000 compared to 2010. The unemployment rate was 7.5 per cent in 2011, a decrease of 0.9 percentage points compared to the previous year. To address the weak developments in the labour market, the Government proposed a labour market package in the Budget Bill for 2012. This package includes measures to improve the Public Employment Service in the form of stronger support and mediation for those at risk of long-term unemployment and better monitoring of jobseeking activities. It also includes a higher quality and more activities in the special employment support mechanism and the job guarantee for young people. The Public Employment Service and the Swedish Social Insurance Administration were assigned in 2012 to expand their cooperation with the aim of reaching more people on long-term sick leave to help them return to the labour market. The Government states that its primary goal is to lead Sweden towards full employment through less exclusion. The value of work, which provides freedom, community, security, and opportunities, cannot be emphasized enough. It adds that changes have not only been carried out in labour market policy but also in other policy areas, including tax and education policies and social insurance. The Committee notes that in the long run, the Government is set on matching the Swedish education system both to new challenges in a globalized world and to the needs of the labour market. The Government indicates that more vocational training and a closer cooperation between schools and universities and the business community have been identified as measures to accommodate those needs. The Committee invites the Government to provide in its next report information on the effects of its labour market policies on sustainable and productive employment generation. It also invites the Government to include further information on the measures taken in the area of education and training policies and on their relation to prospective employment opportunities. Please also provide updated information on the consultations held with the social partners on the matters covered by the Convention, and the effects of the sickness insurance reform on employment.

Women, youth, long-term unemployed, immigrants and persons with disabilities. The Government indicates that unemployment spells are generally short in Sweden, but long-term unemployment is still high and the number of people who are long-term unemployed is likely to increase in the coming years. An important challenge will be to ensure that people facing long-term unemployment receive the support they need to find work, and at the same time prevent the number of long-term unemployed people from growing. The Committee notes that the number of long-term unemployed (defined as over 27 weeks) decreased from 132,000 in 2010 to 113,000 in 2011, corresponding to 33 per cent of the unemployed. With respect to young persons (age 15–24), the employment rate was 40.4 per cent in 2011, an increase of 1.9 percentage points compared to 2010. Among the foreign born (age 15–74), the employment rate was 56.2 per cent in 2011, an increase of one percentage point compared to the previous year. The unemployment rate was 22.9 per cent among youth and 15.8 per cent among the foreign born. The Government indicates that the Introduction Act has been in place for over a year and is geared towards helping newly arrived refugees and their families become established more quickly in the labour market. The Government has also appointed a commission to propose initiatives that will increase the labour market participation and speed up the establishment of newly arrived foreign-born women and immigrants joining their families in Sweden. With respect to persons with disabilities, the Government reports on its strategy for disability policy during 2011–16 and measures taken to help people with disabilities find employment. It further reports that in December 2011, the Public Employment Service together with the Swedish Agency for Government Employers, the Swedish Agency for Disability Policy Coordination (Handisam), the Swedish Work Environment Authority, and the central state employee organizations were assigned to develop a proposal for an internship programme at state authorities for persons with disabilities, including how it should be formed and implemented. 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 persons with disabilities.

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

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.

Observation (CEACR) - adopted 2009, published 99th ILC session (2010)

The Committee notes the Government’s report for the period ending in June 2008 including replies provided to the 2007 direct request. It further notes the observations submitted by the Swedish Confederation of Professional Associations (SACO), the Swedish Trade Union Confederation (LO) and the Swedish Confederation of Professional Employees (TCO), which were forwarded to the Government in December 2008.

Articles 1, 2 and 3 of the Convention. Active labour market policies. Consultation with the social partners. The Government recalls in its report that after a period of substantial economic growth, the international economy has been increasingly characterized by a turbulent financial market. In its autumn 2008 Budget Bill, the Government underlined the importance of conducting a responsible policy to cushion the negative effects expected in the wake of financial worries. According to the Organisation for Economic Co-operation and Development (OECD) figures, in 2007 the employment rate of the population aged between 16 and 64 stood at 75.7 per cent, an increase by 1.2 percentage points – equivalent to 111,000 persons – as compared to 2006. Similarly, the participation rates increased from 70.8 per cent in 2006 to 71.1 per cent in 2007, cumulating in a total of 4,892,000 persons in the first half of 2008. The Government reports that at the same time, the number of persons in social exclusion fell by 121,000. It states that this was the largest reduction in 40 years and had favourable effects on persons that, inter alia, had been unemployed, on sick leave and on subsistence allowance. It further indicates that the “Activity guarantee” was discontinued, labour market policy programmes had been sharply reduced and that the remaining programmes had been restructured. As part of the new policy programme, a new public employment service was created. This was aimed at improving opportunities for control and enhancing operational efficiency and focused especially on those who traditionally had most difficulties to enter into, or return to the labour market. The SACO saw some of the measures taken as counterproductive and questioned the competence of the public employment service for providing qualified services for skilled jobseekers. The Committee further notes that the new labour market policy allowed for fixed-term contracts and that the reduction of the income tax was an incentive to hire new employees. The policy further included an adjustment of the Swedish education system to meet the demand of the labour market. An additional part of this policy was a reform of the unemployment system through a raise of premiums, the reduction of benefits and the raise of the threshold for entering into the insurance system. The LO and the TCO criticized the Government of “making it more worthwhile to work” as having mainly been put in practice through the Government’s reductions of spending in the welfare system. While the Government’s strategy has been to reduce income taxes for those who are working, persons who do not work, such as pensioners and students, have not benefited from cuts in the income taxes. In addition, the LO and the TCO observed that making it easier and less costly to take on new employees was a strategy directed to employers, not to employees. The Committee refers to Article 1(1), which requires stimulating economic growth through active labour market policies. The Committee hopes that in its next report, the Government will outline how the difficulties that have been encountered in attaining the objectives of the Convention have been overcome. It further requests the Government to reflect in detail in its report how the views expressed by the social partners have been taken into account in formulating and enlisting support for the policies undertaken.

Youth, long-term unemployed, immigrants and workers with disabilities. The Government reports that despite the overall downward trend of unemployment rates, youth unemployment showed a slight increase and unemployment among foreign-born persons remained twice as high (11.9 per cent) as among persons born in Sweden. Employment of persons with disabilities is also significantly lower than in the rest of the population: only 50 per cent among women and 54 per cent among men of this group are employed. The new policy measures targeting these groups – such as the “New Start Jobs” programme aiming at the youth, the “Step-in Jobs” focusing on asylum seekers with residence permits, the “Job and development guarantee”, directed toward the long-term unemployed and the 2007 Spring Fiscal Bill appropriating incentives to hire workers with disabilities – have brought some improvements. The Committee notes that nearly 40,000 young persons, aged 16–24, and 34,000 persons born outside of Sweden benefited from the increase of employment in 2007. Furthermore, 18,000 workers between 55–74 years found employment in the reporting period. The TCO and the LO saw the reform of the unemployment benefits system as detrimental principally for young workers and for women, as these groups dominated the low-skilled labour market with its high fluctuation rate and temporary nature. The SACO further notes that the employment situation of immigrants still gave reason for concern. The Committee asks the Government to continue providing detailed information in its next report on the efforts made to improve the employment situation of youth, long-term unemployed, immigrant and workers with disabilities and how possible detrimental effects of the aforementioned measures observed by the workers’ organizations are remedied.

Women. The Government reports that since 2006, employment has increased more rapidly among women than among men, yet also states that unemployment has declined more steeply for men than for women. While the overall labour force participation rate increased in 2007, the labour force participation rates for women as compared to men were 68.3 versus 73.9 per cent. The Government reported that it had expanded the “New Start Jobs” programme to better cater for women’s needs, which led to a 50 per cent participation rate in the public sector. However, the increase was slower in the private sector and stood at 36 per cent at the end of June 2008. The TCO and the LO observed that the Government did not sufficiently consider the specific needs of female workers, since in addition to the general detrimental aspects of the unemployment insurance system, this group was particularly affected by the exemption of parental leave. The Committee asks the Government to continue providing information on the results achieved as a result of the measures adopted to promote female employment, particularly in regard to the “New Start Jobs” programme.

Direct Request (CEACR) - adopted 2007, published 97th ILC session (2008)

1. The Committee notes the information contained in the Government’s detailed report for the period ending in October 2006, as well as the Swedish Reform Programme for Growth and Employment 2005–08, attached.

2. Articles 1 and 2 of the Convention. Labour market policies. The Government reports that the employment rate continued to rise with 73.9 per cent of the population aged between 16 and 64 in employment. Between June and August 2006, nearly 100,000 more persons were employed than in the corresponding period in 2005. Casual employees accounted for more than 70 per cent of the upturn in employment. New job vacancies registered with the Public Employment Service continued to rise; nearly 323,000 new job vacancies were registered during the first half of 2006, the highest number since the beginning of the 1990s. The Government indicates that participation in the “Activity guarantee” continued to rise, with 45,106 participants by the end of 2005. A nationwide survey was undertaken in October 2005 as part of the process of review and quality assurance of the “Activity guarantee”. The main findings were that a large majority of participants were satisfied with the scheme and that it was viewed in a better light than a few years ago. Hiring support, training and other jobseeker courses were judged to be useful. The survey also indicated that there was a need for more individualized initiatives to improve the satisfaction rate of participants and that many of the activities did not meet the requirements of full-time activity. The Committee asks the Government to supply in its next report information on measures taken in response to the results of the 2005 survey as well as data on the impact of the “Activity guarantee” has had in assisting persons in bridging the gap between the unemployment benefit and labour market. Please also include information on the manner in which the measures adopted for the promotion of employment lie within the framework of a “coordinated economic and social policy” (Article 2(a) of the Convention).

3. Long-term unemployed, immigrant workers and youth. Under the “Activity guarantee”, folk high schools have provided training programmes for the long-term unemployed to equip them with the basic skills needed in order to start vocational studies or return to work. Approximately 8,400 persons participated in the programmes in 2005. An experimental scheme of Workplace Introduction for Newly Arrived Immigrants (SIN) has been operating since 2003. A total of 10,616 persons participated in the experimental scheme of workplace introduction for SIN between November 2003 and August 2006. Of these, 6,351 entered employment, while 970 persons went on to training or labour market policy programmes other than hiring help. Under the “Youth guarantee” and Municipal Youth Work Experience (KUP), individual action plans are to be drawn up for each participant, no more than two weeks after the jobseeker registers with the Employment Service. As from 1 February 2005, the “Youth guarantee” also included a period of counselling and jobseeker activities under the Employment Service auspices. There were a total of 22,713 participants in the KUP in 2005 and more than 29,000 participated in the “Youth guarantee” during the same period. The proportion of those employed 90 days after completing either one or the other of the programmes was up 36 per cent in 2005. The Committee would welcome receiving in the Government’s next report information on the measures adopted to promote the employment of vulnerable categories of workers, such as the long-term unemployed, immigrant workers, young persons and workers with disabilities, and on the results achieved in terms of lasting integration into the labour market (Article 1, paragraph 2).

Direct Request (CEACR) - adopted 2005, published 95th ILC session (2006)

The Committee notes the information contained in the Government’s detailed report for the period ending in June 2004, as well as Sweden’s Action Plan for Employment 2004, attached.

1. Labour market policies. The Government indicates that one of its main tasks in the coming years will be once more to reduce unemployment below 4 per cent; the figure for 2004 stood at 5.6 per cent. In addition, the target of 80 per cent of the population aged between 22 and 64 being employed has not yet been achieved, although the current figure of approximately 77 per cent of employed persons largely meets the employment quantitative targets defined for EU countries, which stands at 70 per cent of the population. The Government considers that, to achieve its 80 per cent target, employment will have to be substantially increased, especially among older persons and those of non-Nordic origin. The Committee asks the Government to continue to report on how the measures taken to promote full and productive employment operate within a "framework of a coordinated economic and social policy". Please also include in the Government’s next report information on the achievements of its employment targets.

2. The Committee further notes the information on the trends in the labour market supplied by the Government in its report which shows that the improvement in the labour market ended in 2001 and a slight weakening has taken place in recent years resulting in less employment and a growth of unemployment. The Government indicates that the rise in unemployment is also connected with a substantial growth of labour supply, which can be partly attributed to cutbacks in municipal adult education. Women’s employment has diminished more than men’s, while the opposite applies concerning unemployment. The Government explains that this paradox is connected with more women than men having embarked on studies and more women leaving the labour market for health reasons. The employment participation rate of young persons (aged 16-24) has declined in recent years, the main reason being that more young people are studying and the duration of their studies is longer. However, long-term unemployment amongst young persons has been halved during the past year, meeting the National Labour Market Board’s objective. The Committee would appreciate continuing to receive detailed disaggregated data on labour market trends (Articles 1 and 2 of the Convention).

3. The Government indicates that the "Activity Guarantee", a measure that has been in place for four years with the aim of putting an end to the vicious cycle between labour market measures and unemployment benefit, has been the object of changes in its regulatory structure, partly in light of the experience gained and the results achieved. The number of persons enrolled in the "Activity Guarantee" between January and April 2004 was averaging 36,000. The Government explains that its Budget Bill for 2005 calls for a complete assessment of the four years’ activities of this programme. The Committee asks the Government to continue to supply information on the assessment and success of this programme.

4. The Government further indicates that the experimental scheme of bottleneck training for persons already employed was inaugurated in July 2003 and will continue until December 2005. The initiative has yet to be evaluated but it can already be noted that the employment offices have had difficulties in attracting foreign-born employees to it. The Government also states that workplace introduction for certain immigrants (API) is being operated as an experimental scheme in 20 localities. Between the commencement of the scheme in September 2003 and August 2004, some 24,000 persons had taken part and 47 per cent of those completing API obtained further employment, mostly in private enterprises. The Committee takes note with interest of these experimental schemes and asks the Government to keep it informed of other developments, as well as the outcomes of the training schemes implemented, with a view to matching the requirements of the job market.

5. Regarding the promotion of employment among the occupationally handicapped, the Government indicates that the labour market administration had two targets concerning those persons. The first one was for at least 60,000 people with such disabilities to be employed. That target was achieved in 2003, when 62,000 occupationally handicapped persons were employed with wage subsidies or in public shelter employment. The second target is a yearly rise in the percentage of transitions from wage subsidies to non-subsidized employment. This target was also considered to be achieved in 2003 with an average of some 2,000 persons proceeding from wage subsidization to non-subsidized employment, which represented an increase compared to the previous year. The Committee would appreciate continuing to receive information on the impact of employment promotion for persons with occupational disabilities as well as results achieved in terms of their long-term integration in the open labour market.

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

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.

Observation (CEACR) - adopted 2001, published 90th ILC session (2002)

The Committee notes the information contained in the Government’s detailed report for the period 1 July 1998 to 30 June 2000, as well as Sweden’s Action Plan for Employment 2000 and 2001, forwarded by the Government in June 2001.

1. Articles 1 and 2 of the Convention. The Government states that in 2000 there was a substantial rise in the employment ratio to 77.2 per cent, with young workers and urban jobseekers being the main beneficiaries of the increase. Average open unemployment reached 4.7 per cent (down from 5.6 per cent in 1999), but grew for foreign-born citizens, to as much as 16 per cent for those residing in Sweden for less than five years, as compared to about 4 per cent for people born in Sweden. Youth unemployment decreased to 7.4 per cent. Unemployment was 4.3 per cent for women, and 5 per cent for men; however, the Government states that there was a considerable amount of underemployment among women workers. The Government has set the goal of halving open unemployment between 1997-2000, from 8 per cent to 4 per cent. It hit this target briefly at the end of 2000, but was not yet able to sustain this level. The Government also aims to increase employment to 80 per cent for workers aged 20 to 64 by 2004. The Committee notes this information with interest, and would appreciate being kept informed of progress made in achieving these goals.

2. The Committee notes the Government’s statement that there is a significant regional imbalance in growth in employment. The Government’s main measures for dealing with this imbalance are to provide relocation grants to jobseekers and to subsidize transportation costs. The Committee requests further information on the impact of these measures, and on other policies adopted to promote more balanced regional economic growth and development.

3. The Committee notes with interest that the Government has been very active in attempting to overcome sex segregation in the labour market, and has established "pattern breaker projects" to broaden the employment choices of each sex. An evaluation of the pattern breaker projects was due in August 2001. The Committee would appreciate receiving further information on the outcome of this evaluation.

4. The Government states that it targets special groups in its labour market measures. These groups include non-Nordic citizens, people with disabilities, and young persons (aged 18-24). The Government has set a goal of ensuring that the share of spending on active labour market programmes allocated to these groups matches or exceeds their proportion of unemployment. Special programmes for these groups include computer training, employability measures, tax credits for hiring and training a long-term unemployed person, work experience, and grants for viable entrepreneurial proposals. Please continue to supply information on the impact of these special programmes on employment promotion for the target groups.

5. For older workers, the Government has a system of public temporary employment. However, it has eliminated early retirement as an employment promotion strategy. The Swedish Confederation of Trade Unions (LO) notes that early retirement is mentioned in the Annex to the Employment Policy Recommendation, 1964 (No. 122), as a possible means of reducing unemployment (Paragraph 6(3)), but that pension benefits are designed to encourage late retirement in Sweden. The Committee would appreciate continuing to receive information on progress made in promoting employment for older workers. The Committee also draws attention to the provisions of the Older Workers Recommendation, 1980 (No. 162), Part IV of which addresses preparation for and access to retirement.

Article 3. In reply to previous comments, the Government states that consultations take place at all levels (national, regional, and local/municipal), through bodies such as the labour market committees and the regional skills councils. The social partners provide the text of guidelines addressed to them, which are contained in the Action Plan for Employment.

Observation (CEACR) - adopted 1999, published 88th ILC session (2000)

1. Further to previous observations, the Committee notes the information contained in the Government's report for the period ending May 1998. It notes that the standardized rate of unemployment has decreased from a peak of 9.4 per cent in 1994 to 8.2 per cent in 1998. The Government reports that unemployment was as low as 6.3 per cent in May 1998, due to increases in both employment and adult education. There has been an increase in the workforce of 50,000 for the year ending May 1998 and employment is expected to increase by 100,000 by the end of 1999, while there was a decrease in underemployment and a sharp decrease in long-term unemployment, defined as unemployment exceeding six months. The Government has set a goal of 4 per cent unemployment by the end of 2000, and considers it is on track to attain this goal.

2. The Committee notes that the Government has instituted many programmes aimed at reducing long-term youth unemployment (aged 16-25), defined as unemployment for over 100 days. Youth long-term unemployment has decreased from 37,000 in 1994 to 5,000 in 1998. To tackle adult long-term unemployment, individual action plans are to be drawn up within 30 days of unemployment for all persons considered at risk (e.g. minorities). Adult long-term unemployment has decreased from 80,000 in May 1997 to 45,000 in May 1998. Furthermore, the Government states in its report that it is in the process of commissioning six independent evaluations of various programmes. The Committee hopes the ILO will receive further information on these programmes and their evaluation in terms of the aims of the Convention, and any follow-up action taken.

3. The Committee hopes the next report will provide information on consultations under Article 3.

Observation (CEACR) - adopted 1997, published 86th ILC session (1998)

1. The Committee took note of the Government's report for the period ending June 1996 and of the information it contains in reply to its previous observation. It also notes a communication in which the Swedish Trade Union Confederation (LO) comments generally on the report.

2. The statistical data supplied by the Government, supplemented by the data published by OECD, do not show any improvement in the employment situation during the period. The resumed economic growth in 1994 and 1995 was not accompanied by any increase in the volume of employment so as to compensate for the losses recorded since the beginning of the decade. Total employment fell further by 0.6 per cent in 1996 and the unemployment rate, after a slight drop in 1995, returned to the level of 8 per cent which it reached in 1993. In addition, about 5 per cent of the active population was engaged in a labour market policy programme in 1996. The Committee notes that unemployment seems to firmly stabilize at the high level reached during the earlier recession phase.

3. In this worrying context, the Government indicates that it has fixed its main priority as reducing unemployment by half by the end of the year 2000. It considers, however, that employment policy is restricted by the state of government finance and that sound national finances and stable prices are essential to achieve long-term sustained growth and higher employment levels. In this regard, the Government emphasizes that it is necessary to reduce the public deficit in order to lower interest rates. In the view of the Swedish Trade Union Confederation, however, although budgetary balance is being achieved, the maintenance of an extremely restrictive economic policy has contributed directly to shrinking employment and increased unemployment. The Committee, which notes that domestic demand has remained relatively static during the period, requests the Government to supply its own assessment of the impact of its budgetary stabilization programme on economic activity and, in particular, employment. More generally, it would be grateful if the Government would indicate whether, in view of the results obtained in controlling inflation and deficits, and also the persistence of a high unemployment level, it intends to review the main objectives of its economic policy with respect to its actual or expected impact on employment opportunities, in accordance with Articles 1 and 2 of the Convention.

4. The Committee notes with interest the substantial information provided by the Government on the implementation of its labour market policy. It notes that emphasis continues to be placed on the prevention of long-term unemployment in order to safeguard the employability of jobseekers and that new measures were to be implemented in 1997, including temporary employment programmes for the older unemployed, grants for women wishing to set up in business or education subsidies. The Committee requests the Government to continue to supply detailed information on these programmes and the evaluation of the results they achieve. In regard to young persons, the Government states that it intends to provide them with better training by delaying their entry into the labour market and encouraging higher education studies. The Committee requests the Government to continue to supply information on how its education and training policies are coordinated with employment prospects. Finally, the Committee notes the changes which were to be introduced in 1998 with respect to conditions of granting unemployment insurance benefit in order to promote active jobseeking. It would be grateful if the Government would continue to supply information on the measures taken with a view to providing better coordination between the unemployment protection system and the active employment policy, taking into account the relevant provisions of the Employment Promotion and Protection against Unemployment Convention, 1988 (No. 168), and the Committee's comments on their application.

5. With reference to its previous observations, the Committee notes the indications on the activities of the Advisory Council established in the Swedish National Labour Market Administration (AMS). It is bound to recall again that the consultations required under Article 3 of the Convention should not be restricted to labour market policy in the narrow sense but should be extended to all aspects of the economic and social policy which have an impact on employment. It hopes to find in the Government's next report information on how this important provision of the Convention is applied.

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

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.

Observation (CEACR) - adopted 1994, published 81st ILC session (1994)

1. The Committee notes the Government's report for the period ending June 1992 and the enclosed observations of the Swedish Confederation of Professional Employees (TCO) and the Swedish Trade Union Confederation (LO). According to the information provided by the Government, there was a serious and rapid deterioration in the employment situation during the period covered by the report. The economic recession which began in 1991 resulted in a drop in employment of 1.7 per cent in 1991 and 4.1 per cent in 1992. Despite lower activity rates, the OECD standardized unemployment rate, which stood at 1.5 per cent in 1990, reached 2.7 per cent in 1991 and 4.8 per cent in 1992. Since then, there has been a further accelerated growth in unemployment. According to OECD estimates, the deepening of the recession in 1993 is likely to bring about a 6.7 per cent reduction in employment and a sharp increase in the unemployment rate to a level unprecedented in Sweden, of approximately 8 per cent. The description of the Swedish economy published in January 1993 forecasts unemployment rates of 6 to 7 per cent for 1993 and 1994. In less than three years, the number of unemployed has increased five-fold and the unemployment rate, which had been low for many years, is now reaching the average rate of those European countries which have ratified the Convention.

2. The documents provided by the Government (particularly the 1992-93 budget bill and the economic policy statement for 1993) show a change of direction in macroeconomic policy, which now gives priority to overcoming inflation and redressing the balance of public finances. According to the Government, the necessary adjustments have been too long in coming and it is now urgent to implement a stabilization policy to rebuild confidence and reduce interest rates, an essential factor of economic expansion and, therefore, of reduced unemployment. In the view of the Swedish Trade Union Confederation, the direct effects of the present economic policy will be to reduce employment and increase unemployment.

3. With regard to employment, the Government indicates that it plans to deregulate the labour market by abolishing the monopoly of the public employment service and simplifying existing labour legislation, in particular to stimulate small and medium-sized enterprises. The Committee notes that the Act of 1974 respecting employment protection is one of the laws being amended. The Government will doubtless take into account the provisions of the Termination of Employment Convention, 1982 (No. 158), and the Committee's comments on the application of that Convention, when the amendments are made.

4. The Government indicates in its report that the various labour market policy programmes are still being expanded to combat growing unemployment. Priority is given to measures for training for employment and adapting qualifications with a view, in particular, to containing long-term unemployment and the unemployment of young first-time jobseekers. However, the annual follow-up studies indicate that the integration rate of the beneficiaries of training for employment, which for years stood at 70 per cent, attained only 51 per cent in 1991-92 because of unfavourable conditions on the labour market. The Committee also notes that measures to guarantee employment and temporary employment for young people have been replaced by an experimental programme of practical training in an enterprise for the unemployed who are under 25 years of age. It notes that the Swedish Trade Union Confederation considers that the design and implementation of this programme has been very unfortunate. According to the LO, its effect has been to provide free labour for enterprises which, therefore, have not needed to announce any regular vacancies suitable for young people. The Committee recalls in this connection that the Government is responsible for ensuring that measures to promote the employment of young people should not be diverted from their objective which is to contribute effectively to the lasting integration into employment of the persons concerned. It asks the Government to indicate in its next report the measures taken or envisaged to prevent any abuse. As is suggested in the Employment Policy (Supplementary Provisions) Recommendation, 1984 (No. 169), such measures should fulfil certain conditions and in-depth consultations should be organized at an early date on their formulation, application and supervision between the competent authorities and the employers' and workers' organizations concerned (see in particular paragraphs 17 to 19 of the Recommendation).

5. The Committee notes that following the withdrawal of the Swedish Employers' Confederation (SAF) the Governing Body of the National Labour Market Board has not been a tripartite body since 1 July 1992. The Swedish Trade Union Confederation points out that the trade union representatives were removed from the Board of the Labour Market Administration against the will of the trade unions and that the same occurred with the trade union representatives in the County Labour Boards. The Government points out, however, that discussions with the social partners now take place in a tripartite advisory council under the Governing Body and specialized committees of a "more or less permanent" nature. The Committee would be grateful if the Government would provide complete information in its next report on procedures for consulting employers' and workers' representatives on employment policy measures established in this new institutional framework, specifying the opinions gathered and the manner in which account was taken of them, in accordance with Article 3 of the Convention.

6. Lastly, the Committee notes in summary and conclusion that while still declaring its attachment to full employment as a priority objective of labour market policy, the Government now considers that controlling inflation and public expenditure are prerequisites for renewed growth and employment. The Committee is bound to note that with the change of direction in macroeconomic policy, a rapid drop in inflation and reduced production have been accompanied by a worrying increase in unemployment, particularly long-term unemployment, which labour market policy measures, despite their scope, have been unable to contain. Furthermore, there appear to be signs of a lessening of tripartite dialogue at a time when serious difficulties in the area of employment and the measures to overcome them call for intensification of consultations between the social partners. In this context, the Committee must draw the Government's attention to Article 2 of the Convention, which lays down the obligation to decide on and keep under review, within the framework of a coordinated economic and social policy, the measures to be adopted in order to promote, as an essential objective, full, productive and freely chosen employment. It hopes that in its next report, the Government will be able to state that there have been positive developments in this respect.

Observation (CEACR) - adopted 1993, published 80th ILC session (1993)

The Committee notes that the Government's report has not been received. It must therefore repeat its previous observation which read as follows:

1. The Committee notes with interest the detailed information supplied by the Government in its report for the period ending June 1990. According to this information, the favourable development of the employment market continued during the period under consideration. Employment continued to rise and the already high participation rates increased still further for both sexes and for the various age categories, while unemployment affected only 1.5 per cent of the active population. Recent data (particularly those published by the OECD), however, show that, since the end of that period, the employment situation has tended to worsen appreciably. In a situation of declining economic activity and a marked slow-down in employment growth, the unemployment rate rose to over 3 per cent by the end of 1991, despite a decrease in the active population. Whilst the excellent position described in the report accompanied a policy clearly in step with the aims of the Convention, recent indications of some difficulties have been met with prompt response in an effort to maintain the position. 2. The documents to which the Government refers in its report show that full employment is one of the overall objectives of its general economic policy, which also aims to achieve rapid economic growth, an equitable distribution of income, a healthy balance of payments and a low inflation rate. However, in its guidelines for the 1990-91 Budget Act, the Government states that the immediate future will be crucial in deciding whether or not it will be possible to reduce inflation without, as is usual in other countries, having recourse to high unemployment. The Committee would be grateful if the Government would supply information in its next report on the general economic policy measures that have been taken or are envisaged in the new context of a slow-down of economic activity in order to maintain the policy of promoting full employment as a "major goal". 3. The Committee notes with interest that, during the period covered by the report, the Government continued to emphasize active employment promotion measures such as the provision of assistance for geographical mobility, the provision of paid vocational training to the unemployed, subsidies to enterprises recruiting young or disabled jobseekers, and the financing of training in enterprises intended to adapt workers to new technologies and changes in the organization of work. The Committee hopes that the Government will continue to supply detailed information on these measures and their impact on employment, and on any new measures that are taken to combat unemployment.

Observation (CEACR) - adopted 1992, published 79th ILC session (1992)

1. The Committee notes with interest the detailed information supplied by the Government in its report for the period ending June 1990. According to this information, the favourable development of the employment market continued during the period under consideration. Employment continued to rise and the already high participation rates increased still further for both sexes and for the various age categories, while unemployment affected only 1.5 per cent of the active population. Recent data (particularly those published by the OECD), however, show that, since the end of that period, the employment situation has tended to worsen appreciably. In a situation of declining economic activity and a marked slow-down in employment growth, the unemployment rate rose to over 3 per cent by the end of 1991, despite a decrease in the active population. Whilst the excellent position described in the report accompanied a policy clearly in step with the aims of the Convention, recent indications of some difficulties have been met with prompt response in an effort to maintain the position.

2. The documents to which the Government refers in its report show that full employment is one of the overall objectives of its general economic policy, which also aims to achieve rapid economic growth, an equitable distribution of income, a healthy balance of payments and a low inflation rate. However, in its guidelines for the 1990-91 Budget Act, the Government states that the immediate future will be crucial in deciding whether or not it will be possible to reduce inflation without, as is usual in other countries, having recourse to high unemployment. The Committee would be grateful if the Government would supply information in its next report on the general economic policy measures that have been taken or are envisaged in the new context of a slow-down of economic activity in order to maintain the policy of promoting full employment as a "major goal".

3. The Committee notes with interest that, during the period covered by the report, the Government continued to emphasise active employment promotion measures such as the provision of assistance for geographical mobility, the provision of paid vocational training to the unemployed, subsidies to enterprises recruiting young or disabled jobseekers, and the financing of training in enterprises intended to adapt workers to new technologies and changes in the organisation of work. The Committee hopes that the Government will continue to supply detailed information on these measures and their impact on employment, and on any new measures that are taken to combat unemployment.