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Budget increase for labour market measures

Country of implementation
General short description of the innovation
The economic situation in 2000 required a changed labor market policy. It became necessary to manage a large inflow into unemployment and to try to prevent this leading to a persistent increase in long-term unemployment, which in turn reduces future labor market functioning. The new goal formulated in the Spring Fiscal Policy Bill 2009 was to ?direct more resources to those with short unemployment spells to prevent long periods without work." / / Measures for short-term unemployment should mainly consist of "support and encourage those who lose their jobs to continue looking for work." People who were in need to enhance skills or maintain contact with the labour market was offered internships. Employment training was not prioritized, those in need of education were expected to enroll in the regular education system. Competitiveness of long-term unemployed should be guaranteed by the new job and development guarantee and the job guarantee for young people (NIER 2009). / / Yet, some new measures were introduced: / PES and activation measures (mostly coaching and job training) 2009:2,6 billion SEK 2010: 2,4 billion SEK 2011: 0,4 billion SEK, temporary / PES?s were instructed to "reinforce matching activities and provide an early and personalized support to help jobseekers back to work." This should happen through increased opportunities for personal coaching. The government estimated that a total of 31 500 people should be able to get some of this activity in 2009. / / Opportunities for work training increased (about 21 600 new full-year places for 2009). / / Special measure for long-term unemployed, 2009: 0,9 billion SEK, 2010: 1,4 billion SEK, 2011: 1,4 billion SEK , permanent / Subsidies for ?new start jobs? doubled. New start jobs are aimed at those who have been unemployed, sick leave or early retirement in more than a year. Previously the employer who hired a person in the new start program was compensated by an amount equivalent to the full payroll tax, including pension contributions, for the time the person had been absent from the labor market. / / Vocational training and education (more places 2009-2011, more students can achieve study allowance), 2009: 0,5 billion SEK, 201: 0,7 billion SEK, 2011: 0,2 billion SEK, temporary / More places for vocational education after secondary level (yrkesh”gskola) (about 1000 in 2009) and vocational courses at secondary level in municipal adult education (yrkesvux) (about 3600 in 2009) was established. Student grants to unemployed over 25 who choose vocational temporarily in 2009 and 2010 were also increased. / / ALMP 2009: 3,0 billion SEK / The number of places in the job and development guarantee and job guarantee for young people were increased by about 26,000 to 103,000 in 2009, and 100 000 to 175 000 in 2010. This is the area of labor market policy in which volume increases were greatest. /
Target group
Policy Field
  • education
  • employment
Type of Policy
  • public
Duration of the policy
see above
Scope of innovation
  • Scope: see above
  • Budgets: see above
  • Number of intended beneficiaries: see above
General description of (intended) objectives and strategies
Support and encourage those who lose their jobs to continue looking for work. Those in need of education were expected to enroll in the regular education system
Nature of the innovation-short-term perspective
short - term
Nature of the innovation-long-term perspective
long - term
Type of ideal-typical strategy for the innovation
  • others
Type of innovation
  • new form of policy implementation/delivery
  • new policy, practice or measure
  • retrenchment or expansion of an existing/earlier policy
New outputs
  • job guidance, coaching and/or counselling
  • subsidies/tax-credits
  • training schemes
Clarification of intended mechanisms, outputs and outcomes (optional)
Support of unemployed, provide long-term unemployment
Intended target group
Long-term unemployed / Short-term unemployed /
Actors involved in policy-making/implementation and/or evaluation
  • agency or national social insurance body (PES )
  • central state
  • private for-profit organisations (commercial)
Intended output
  • job guidance, coaching and counselling
  • others (fight unemployment )
  • services
  • subsidies/tax-credits
  • training schemes
Did the innovation have any outcome related to job quantity?
increase activity an evaluation of new startsjob showed that the measure increased labour market participation and decreased unemployment (program is directed towards a broad group of people, however, those who used that program had a somewhat higher education level than other long-term unemployed, men are overrepresented as are immigrants from non-european countries.) avoid/fight long-term unemployment
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