EMCC European Monitoring Centre on Change

Jokarjo

Company/Organisation:
Jokarjo

Geographic Location

Country: Sweden

Company

Sector: Health / social work
Residential care and social work activities
87.90 - Other residential care activities
Number Employed: 550

Employment Effects

Announcement Date: 08-10-2016
Planned Job Reductions min: 500
Type of Restructuring: Closure
Foreseen End Date: 31-01-2017

Additional Information

Swedish private company Jokarjo will terminate 500 of its 550 employees following the closure of 40 of its 44 accommodations for asylum seekers. The reason for the closure of the accommodations is cancellation of the company's contract with the Swedish Migration Agency. The Swedish Migrations Agency will greatly decrease its procurement of accommodation for asylum seekers following a decrease in the presence of asylum seekers in Sweden after new legislation. Responsibility for refugees who have been granted asylum is transferred from the Swedish Migration Agency to the local municipalities. The Swedish Migration Agency will therefor not pay for accommodation of asylum seekers when they have been granted asylum. Refugees, with help from the municipality, are instead supposed to acquire housing in the municipality once they have been granted asylum. 

The Swedish Migration Agency will in total disband contracts for temporary accommodation for around 7000 asylum seekers from now until January 2017, leading to redundancies in a number of companies. Jokarjo has been in charge of around 20% of the accommodations for asylum seekers for the Swedish Migration Agency.