Focusing on the most vulnerable Modernization of social protection and supporting activation

Ministry of Employment Sweden

Focusing on the most vulnerable

Modernization of social protection

and supporting activation

Maria HemströmMinistry of Employment

Sweden


The largest Swedish trade union Magazine

August 29, 2008

EMPLOYMENT NOW

ALL TIME HIGH


EMPLOYED


EMPLOYED

UNEMPLOYED


EMPLOYED

UNEMPLOYED

”the most vulnerable”

INACTIVE

BENEFIT RECEPIENTS


Consequences of the Swedish crises in the 1990’s

(Q4, 16-64, %)

1990 1993

Unemployment 1,5 8,3

Labor force participation 84,5 77,7


Consequences of the Swedish crises in the 1990’s

(Q4, 16-64, %)

1990 1993 2005

Unemployment 1,5 8,3 5,4

Labor force participation 84,5 77,7 78,0


EMPLOYED

UNEMPLOYED

”the most vulnerable”

INACTIVE

BENEFIT RECEPIENTS


Challenges

Poverty traps

A compressed wage-structure

Search-activity decreases with time

spent in unemployment


Challenges

Poverty traps

Need to make work pay

A compressed wage-structure




Challenges

Poverty traps


A compressed wage-structureNeed to make it less expensive to

employ




Challenges

Poverty traps


A compressed wage-structureNeed to make it less expensive to

employ



Need to support activation


Recent changes

Changes in unemployment- and sickness-benefits

New measures targeted at unemployed at the margin of

the labour market


The UNEMPLOYMENT INSURANCE

Benefit level (% of previous income)

Time in unemployment(No of days)

300

80 %

600

PREVIOUS SYSTEM





200 300

80 %

70 %

65 %

PREVIOUS SYSTEM

CURRENT SYSTEM





200 300

80 %

70 %

65 %

The job & -development guarantee

PREVIOUS SYSTEM

CURRENT SYSTEM





200 750300

80 %

70 %

65 %

Phase 1 & 2


PREVIOUS SYSTEM

CURRENT SYSTEM





200 750300

80 %

70 %

65 %

Phase 1 & 2

Phase 3


PREVIOUS SYSTEM

CURRENT SYSTEM





200 750300

80 %

70 %

65 %

Phase 1 & 2

Phase 3


PREVIOUS SYSTEM

CURRENT SYSTEM

New start jobsStep in jobs


The SICKNESS INSURANCEBenefit level (% of previous income)

Time on sick leave(No of months)

80 %PREVIOUS SYSTEM




80 %PREVIOUS SYSTEM

CURRENT SYSTEM




80 %PREVIOUS SYSTEM

CURRENT SYSTEM

3

Is there anything else you can do at:

your present employer?




80 %PREVIOUS SYSTEM

12

CURRENT SYSTEM

6 3



another employer?




80 %PREVIOUS SYSTEM

12

75 % CURRENT SYSTEM

6 3



another employer?




80 %PREVIOUS SYSTEM

12 36

75 % CURRENT SYSTEM

6 3



another employer?


Conclusions

The current crisis will be followed by a demographic challenge

We need to create incentives and opportunities that will make

people stay in and reenter to the labour

market

Focusing on the most vulnerable Modernization of social protection and supporting activation

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