The programs aims to train migrants and make the labor market more transparent for job-seekers. Through individualized support, provided by private suppliers who are publicly funded, job-seekers (who have been unemployed for a long time (about a year) or who are newly arrived in the country) are provided individualized education and matching to the labor market needs.
Sweden has experienced rapid population expansion since 2011, mainly due to a strong increase in the number of migrants. The unemployment rate reached 7.8% -7.9% from 2011 to 2014 vs 5.5% world average. The main cause of high unemployment was inefficient matching of the labor force with work opportunities.
Help unemployed citizens and migrants to get a job or start studying as quickly as possible. The intention is to provide people who are far from the labor market with special and individually adapted efforts (matching, guidance) that lead them to work or study and increase their prerequisites for getting a job
Steps to solving the problem
The service is provided by about 200 private training suppliers who have an agreement with the Swedish Public Employment Service
- The program is financed through the Government appropriation "Program and Action 1: 3". The agency contracts private suppliers and pays them based on the number of job-seekers that uses the supplier's services
- Through individualized support, provided by private suppliers who are publicly funded, job-seekers (who have been unemployed for a long time (~1Y) or who are newly arrived in the country) are provided individualized education, job-seeking support and matching to the labor market needs.
- In order to choose, the supplier of training provides participants with face-to-face consultation, which is free of charge
- Program participants are able to use government vouchers, which cover costs of training
- These suppliers use labor market intelligence - long-term forecasts of supply and demand for labor for different education groups, provided by the Swedish Public Employment Service and Statistics Sweden
- The Swedish Public Employment Service is annually monitoring the number of participants in the program and the share of people in work or education 90 days after the completion of the training and matching
- The Swedish Public Employment Service terminates the contract with those suppliers who have poor results or few participants
- The suppliers are rated by the users of the service and the ratings are published online
- Decrease of long-term unemployment: Sweden is in the Top-5 in the EU with the lowest long-term unemployment rate in 2017
- Mobilization of long-term unemployed and immigrants: the number of participants soared from 2000 in 2014 to 82,000 in 2016
- High success rate of employability – 1 out of 3 male participants finds job – 1 out of 5 female participants finds job
A survey of participants shows that the majority of participants (about 60%) are satisfied with the instrument. ~50% of participants also say that the support helped them get closer to work or study.
The highly individualized support given with the instrument, and the freedom of choice that might foster motivation among the job-seekers, might be interesting for other countries to get inspiration from. The service is probably possible to implement in other countries, but since the service relies heavily on New Public Management (NPM) strategies for public administration implementation, it is probably easier in countries using NPM. The service also relies on suppliers of these services, which either have to already exist or be promoted.