Improving the labour market participation of migrant workers

The employment of migrant workers has increased by about 4% and now stands at 60%. However, this figure remains much lower than the employment level of native workers which is 82%. The new ‘step-in jobs’ reform programme, launched in the summer of 2007 to improve the situation of migrant workers, has proved unsuccessful so far, with only 163 people finding work under the scheme. The social partners agree that more immigrants need to find employment, but disagree on how to achieve this.

Recent labour market developments

In general, the recent economic development has increased the overall demand for workers. This has resulted in a strong increase in the employment of foreign workers in Sweden.

Data from the National Labour Market Administration (Arbetsmarknadsverket, AMV) show that among the 26,000 newly-arrived migrant workers applying for jobs, 33% have an academic education, 27% have completed an upper secondary education, while 40% have finished compulsory schooling. Several thousands of migrant workers have the necessary skills or qualifications which match those demanded in various occupations in sectors such as health and medical care, the manufacturing industry, construction, education and transport.

Thus, the labour market situation for people of foreign extraction has improved. However, the employment of people from outside of Europe is still much lower, at 60%, compared with 82% among native Swedish workers. The level of employment is mainly higher among younger people aged 20–24 years.

Employment of migrant workers from within Europe is slightly higher, at 66%. A clear relationship is evident between labour market participation and the length of time a person has been living in Sweden: the employment level among immigrants who have been in Sweden for less than five years has reached about 50%.

Programmes for newly-arrived migrant workers

To date, several programmes have been put in place to overcome the labour market and social exclusion of migrant workers.

• ‘Step-in jobs’ (instegsjobb för nyanlända invandrare) – this reform measure combines work and language training, and it provides the employer with an incentive to employ migrant workers (SE0705019I).

• ‘Assessment of professional skills’ (yrkeskompetensbedömning) – within three months, after a migrant worker is given a residency permit, an assessment of the individual’s skills is carried out in an effort to match the skill levels of an employee with a qualified job.

• ‘New-start jobs’ (nystartjobb) – by decreasing the social security contribution amounts, employers are given an incentive to hire migrant workers and others, who have been excluded from the labour market for an extended period of time (SE0703019I).

• ‘Internship’ (prova på plaster) – this kind of internship is directed at unemployed people who have limited work experience.

• ‘Workplace introduction’ (arbetsplatsintroduktion) – under this initiative, individuals receive support during the initial stages of starting a new job.

The new-start jobs reform programme has so far been a success: since 1 January 2007, over 12,000 individuals have been employed through this programme. In comparison, the step-in jobs initiative has been rather unsuccessful: under this scheme, only 167 people have gained access to the labour market since 1 July 2007. The Minister for Employment, Sven Otto Littorin, is disappointed with this latter result and is willing to investigate the reasons for the unsatisfactory outcome. However, Bo Bylund, the Director General of the National Labour Market Board (Arbetsmarknadsstyrelsen, AMS), which is part of the AMV, considers that it is too early to determine the success of these programmes and argues that it will take time to launch a new programme that involves various actors.

Social partner views

The social partners agree that the labour market and social exclusion of foreign workers must be addressed, not least because employers face problems in finding skilled labour. However, the social partners have different ideas about how this issue should be addressed.

According to labour market expert with the Confederation of Swedish Enterprise (Svenskt Näringsliv), Karin Ekenger, more Swedish companies will have to hire workers from abroad due to the current labour force shortage. However, Ms Ekenger believes that the regulations for labour migration are too complicated and are having a negative impact on several companies’ development and competitiveness. In this case, the confederation argues that the system of hiring migrant workers has to be more transparent and flexible. Nonetheless, the organisation has reacted positively to the government’s suggestion that companies will receive more power in relation to the labour migration process (SE0708029I).

The Swedish Confederation of Trade Unions (Landsorganisationen i Sverige, LO) does not oppose the migration of workers, but is keen not to lose its authority in this matter. LO perceives a potential risk in the fact that companies will possibly employ people under terms and conditions that are not in line with the relative collective agreements. Moreover, LO fears an increase in the number of cases of employee misuse. Consequently, according to LO, the trade unions should be represented in this process to help prevent a potential decline in the labour market situation.

Thomas Brunk, Oxford Research