Measures to tackle unemployment

Unemployment in Sweden is high. There are cyclical and structural reasons for this. Cyclical unemployment is being tackled through the Government’s measures to shore up domestic demand, such as improving household finances and creating better conditions for companies, for example by reducing the cost of employing people. The structural challenges in the labour market are mainly associated with many unemployed people lacking qualifications required by employers, for example due to deficient language skills or inadequate education. Furthermore, the way the benefits system is structured provides little incentive to work. These challenges are primarily being tackled through measures such as greater incentive to work and educational initiatives.

Everyone who can work should work. The Government is striving to re-establish the work-first principle so that more children can see their parents go to work. You can learn more about the Government’s measures to tackle unemployment below.

Better household finances

Throughout this electoral period, the Government has supported households whose purchasing power has been severely reduced by high inflation. This has included reforms such as reduced taxes on labour and pensions, an increase of the housing allowance, measures to cut fuel prices, increased unemployment benefits and electricity subsidies. The Government is continuing to improve household finances to break the protracted economic downturn and to get more people into work.

Greater incentive to work

A job is important for every individual’s financial situation, but for most people, a job also has additional value, such as the feeling of contributing to society and access to social interaction and context. Being unemployed or without meaningful employment for extended periods risks having negative financial and social effects on the individual. To counter passivity, the Government is pursuing a policy that energises the unemployed and prioritises cost-effective labour market policy measures. In addition, the Government is implementing reforms to improve incentives to move from benefits to jobs.

Educational initiatives

Part of the Government’s strategy to permanently reduce unemployment is to improve the skills of the unemployed. Educational initiatives improve matching in the labour market and reduce structural unemployment through more unemployed people obtaining the qualifications that are relevant when the economy recovers. Short, vocational courses that are adapted to the needs of the labour market, such as labour market training and vocational training for adults at upper secondary level, are particularly effective. During this electoral period, the Government has provided funding to increase the number of places in vocational higher education and adult education. Good knowledge of Swedish has also been shown to be important for getting a job, even in low-skilled professions. Measures to strengthen language skills among the unemployed are therefore important. The Government is continuing with initiatives that reflect this.

Entrepreneurship

Establishing more companies is key to breaking the economic downturn. More companies create more innovations, jobs and increased prosperity. A good business climate is essential for more Swedish jobs and economic growth. Simpler rules, quicker permit processes and better skills supply can remove obstacles to growth and improve entrepreneurs’ ability to focus on their core activities.