The National Audit Office's report on the audit of subsidized employment
Translated from Swedish by AI; the translation may contain errors. The Swedish text is the original.
Summary AI, written in advance
M supports the proposals and emphasizes that the government is carrying out powerful measures against benefit fraud 1. M argues that the massive efforts represent a paradigm shift to curb crime 2. S argues that the nystartsjobb reform lacks sufficient controls 3 and wants to stop new grants until the control is improved because the system is poorly designed and fuels crime 4 5. S advocates for labor market testing and collective agreements 3 6. SD welcomes the review and argues that previous governments have turned a blind eye to abuse 7. SD believes that the government should address the flawed construction of nystartsjobb 7. KD agrees with the Swedish National Audit Office's concern regarding ineffective controls 8 and argues that the government is taking good measures 8.
Written by AI in advance and may contain errors. The numbers lead to the speech a statement builds on; check against the text below.
Saila Quicklund (M)
Madam Speaker! Today we are debating AU10, the National Audit Office's report on the control of subsidized employment. I begin by moving to approve the proposals in the report. I also want to draw the audience's attention to the fact that the audit covers the years 2017-2022, i.e., primarily when the previous government was in power.
In November 2023, the Swedish National Audit Office published its review Subsidised employment - to counter errors in a system with serious risks. The Swedish National Audit Office notes that the Swedish Public Employment Service's control work can be streamlined and that the government has designed the subsidised employments, particularly new-start jobs, in a way that can entail risks of abuse.
The National Audit Office also notes that in Sweden, subsidized employment constitutes a large part of the labor market policy from an international perspective. 18 billion kronor are paid out annually, and approximately 150,000 people have just such an employment. Studies show that the measures have positive labor market effects, but also that there is a high risk of incorrect payments.
The Swedish National Audit Office examines in its report whether Arbetsförmedlingen's control work is effective and whether the government's management of these employments counteracts incorrect payments.
The Swedish National Audit Office recommends that the government ensures that the risks in the "nystartsjobb" (new start jobs) are matched by adapted requirements for controls. It further recommends a review of the regulations specifying how the Public Employment Service (Arbetsförmedlingen) shall control employers who lack collective agreements so that good employment conditions can be secured without the administration becoming too costly. Finally, the Swedish National Audit Office recommends a review of the system for reclaiming incorrect payments so that the Public Employment Service is given the conditions to collect incorrectly paid compensation in an efficient manner.
The Government naturally welcomes the Swedish National Audit Office's review and responds that the level of control has been raised as a result of the changes made in a number of ordinances, including the ordinance on support for start-up jobs. As a result of these ordinance changes, Arbetsförmedlingen's possibilities to refrain from granting support to unsuitable employers have increased.
The Government has also stated as a goal for Arbetsförmedlingen in the regulatory letter that the agency shall contribute to the overall goal that payments from the welfare systems shall be correct, that the proportion of incorrect payments shall decrease and that errors shall be countered.
On 1 January 2024, the Payment Authority was established, which has the task of preventing, deterring and detecting incorrect payments from the welfare systems through data analysis and audits, including payments for subsidized employment.
The Government submitted a bill to the Riksdag in March with a proposal for a new law on the duty to provide information in order to counter incorrect payments from welfare systems as well as fraud, rule violations, and crime in the working life. The law means that certain state authorities as well as municipalities and unemployment insurance funds shall be able to share more information with each other than is possible today.
The Government has appointed an inquiry into improved opportunities for information exchange between authorities.
The government has also decided to lower the subsidy level for new start jobs from and including 1 January 2024.
On 21 December 2023, the government decided on an amendment to the ordinance in order to improve Arbetsförmedlingen's possibilities to carry out checks of job seekers' right to work and reside in Sweden.
Regarding Arbetsförmedlingen's measures, the work against incorrect payments is prioritized in the agency's operational plan for 2024. Within the employer control, approximately four million automatic controls are carried out annually. Until the end of 2022, there were greater limitations in the regulatory framework regarding which measures Arbetsförmedlingen could take to deny decisions and stop payments regarding wage subsidies. Arbetsförmedlingen participates, among other things, in a cooperation with Utbetalningsmyndigheten where they will both receive and share intelligence intended to prevent incorrect payments.
Madam Speaker! The criminal economy turns over a total of 150 billion, and the subsidy fraud and the incorrect payments are estimated to amount to 20 billion kronor per year. But it could be a gross underestimation. Subsidy crimes have increased by 133 percent in a few years. It is a serious problem that many billions every year disappear from the welfare system. These are funds that could have been used to get order on security in Sweden and improve the quality in schools, healthcare, and elderly care.
Powerful efforts to create efficiency, counter fraud and incorrect payments are now being undertaken by the government, and the government is also prepared to take further measures if the need arises.
Serkan Köse (S)
Madam Speaker! Thank you, Saila Quicklund, for an engaging speech!
I intended to ask some questions to the member to better understand how the Moderaterna think. The member mentioned that this is an audit covering the previous government's mandate period. That is true, but what the member perhaps should have said is that the reform with "nystartsjobb" was introduced by the bourgeois government. It is that reform that the Swedish National Audit Office is now literally slaughtering. They argue that there are insufficient controls and that it opens up for abuse and fraud.
The Chairman also mentioned that powerful efforts have been made against fraud.
I would very much like to hear how the Moderaterna intend to proceed. We have repeatedly proposed that a labor market assessment should be introduced for these employments. Does the member believe that this might perhaps strengthen the legal certainty and the efficiency of the system? What is the member's view on introducing collective agreements for employers who hire with nystartsjobb to ensure good working conditions and reduce the risk of abuse?
In its report, the Swedish National Audit Office is very clear that the management of Arbetsförmedlingen in recent years has been characterized by budget cuts that have led to Arbetsförmedlingen failing to fulfill its mandate. The Swedish National Audit Office also notes, as the member also mentioned, that the Swedish Payments Agency will send its data to Arbetsförmedlingen, which will require additional resources. How does that square with the cuts that M has made over all these years on the resources for Arbetsförmedlingen?
Saila Quicklund (M)
Madam Speaker! I believe that Member Serkan Köse and I are in complete agreement that the subsidy fraud must be curbed. As I mentioned in my main speech, it is estimated to amount to 20 billion, which could be used in welfare. This comes, not least, from the Social Democrats' criticism that there is too little money in welfare, that they want more, and that the municipalities are vulnerable.
It is surprising that the Social Democrats were not more active during their eight years. Even then, the cheating was well known. It is only since this government took office that the massive interventions have come to fruition. I can gladly repeat them again for the sake of clarity.
We have started a payment authority. An exchange of information will take place between the authorities. A reporting obligation has been established and is out for Council of State referral. We have regulatory changes that make it easier for Arbetsförmedlingen to refuse to let certain individuals or unsuitable companies receive the nystartsjobben. A number of different things are happening. We also have a large initiative against crime in the working life with seven regional centers, and there are work environment inspectors linked to them. We are making enormous investments and implementing a paradigm shift in the justice area to curb this. To the question of what the government is doing, the answer is that these measures are central.
My question to Member Serkan Köse is: Why did the previous government not take action on this, when it was known that the fraud existed within these specific parts? Why was nothing achieved? It is now during our two years that it has occurred. You had eight years but did not implement what was required.
Serkan Köse (S)
Madam Speaker! I do not quite feel that I received answers to my questions. I will return to them, but in response to the member's question, I can briefly describe what the Social Democrats did during their time to manage the nystartsjobben.
We first tried to strengthen the cooperation with trade unions. We ensured that trade unions were given better conditions to submit statements to Arbetsförmedlingen regarding a workplace's suitability for nystartsjobb. This means that one has an overview of the working conditions at the workplace, which is important. This led, among other things, to a reduction in the risk of abuse of the grants.
We have set requirements for collective agreements. We are working so that companies with nystartsjobb can be covered by collective agreements. But you have said no to that, Saila Quicklund. We proposed that a labor market assessment should be made in each individual case when deciding on nystartsjobb. You have also said no to that.
Unfortunately, you also plan next year to scrap that which concerns providing support to the trade union organizations so that they can submit statements to, among other things, Arbetsförmedlingen. You are withdrawing those resources.
The member was very proud of the efforts and the investment in the work environment area, not least against crime in the workplace. But we can well state to everyone listening that nothing was on the table regarding crime in the workplace when we took over government power in 2014. It was the Social Democratic government that initiated the strategy. It was also the Social Democratic government that started with the a-krim centers that the member mentioned. We have seven centers in place. I am glad that the current government has continued with the Social Democratic strategy and the Social Democratic direction to combat crime in the workplace.
But the questions remain. Does the member believe that legal certainty and the efficiency of the system would increase if labor market testing were introduced? Why do the Moderaterna say no to this being covered by collective agreements?
Saila Quicklund (M)
Madam Speaker! I thank Serkan Köse for the remarks.
I must say that Serkan Köse sounds satisfied with the previous government's efforts. Nevertheless, it is this government that has made the efforts that I previously detailed. We saw a need. There was a great frustration during the time we sat in opposition and saw this happening. Let us remember that on average it is 20 billion per year that has gone to benefit fraud!
I also want to remind Serkan Köse that it was the Social Democratic Minister for Employment who removed the requirement for collective agreements. This was written into the January agreement, and it was a Social Democratic minister who removed the requirement. That certainly needs to be reminded.
Regarding the reduced resources for Arbetsförmedlingen, we had a visit from the Director General in the committee just a few weeks ago, who expressed that with the resources one has, there are also means that are being wasted.
Through the regulatory changes we are now making, one has excellent instruments to prevent crime, fraud and so on. I must clarify that it is this government that is working offensively against benefit fraud at all levels. Across departments and ministers, we take a collective responsibility. Money should go to the welfare and not into criminals' pockets.
Magnus Persson (SD)
Madam Speaker! I would like to begin by moving for approval of the Sweden Democrats' reservation number 2 in the report.
Madam Speaker! The Sweden Democrats have for a long time pointed out that there is an extensive problem with subsidized employment in all forms. In the past, it concerned the much-discussed extra jobs, a measure that the current government and the Sweden Democrats have removed because it was abused very much by many municipalities and created large displacement effects on the labor market. There were municipalities that cheated to get money. The case with the Social Democrat-led Malmö municipality is the most well-known.
Madam Speaker! The "nystartsjobb" also stand out in a negative direction, which is also confirmed by the Swedish National Audit Office's current audit. Abuse and over-exploitation are common, and there are also links to crime in the labor market. This is an audit that the Sweden Democrats welcome. All abuse of state funds must be scrutinized thoroughly, something that previous governments completely ignored. They chose to turn a blind eye despite the warnings coming in thick and fast.
Madam Speaker! Furthermore, the subsidized employments are overall quite inefficient in the current situation. They fail in terms of the transition to regular employments, which must be the main goal. The employments have instead, together with other labor market measures such as Samhall, become a tool to manage the consequences of the previous governments' decisions regarding the management of the enormous immigration Sweden has had over a long period.
Madam Speaker! Regarding the "nystartsjobb" (new start jobs), which this report concerns, we note that the government has taken certain measures in light of the Swedish National Audit Office's observations, which the Sweden Democrats welcome. But, Madam Speaker, the core of the problem is not what is happening today. The core of the problem is that previous governments have worsened the regulatory framework, opened it up to fraud, and simply turned a blind eye to the problems that are now being raised, which can be clearly seen in the Swedish National Audit Office's review. I do not know what was most important – to stay in power and conform to the Centre Party or to tackle the problems.
This government, unlike previous governments, is taking a big step in the right direction. But unlike the committee, we in the Sverigedemokraterna believe that what is reported in the report is not sufficient.
We therefore consider that the government should primarily address the deficient construction of the nystartsjobb. We also consider that the government should urgently ensure that the labor market parties and the regional centers against labor market crime are involved in the work of reviewing whether a workplace is suitable for a nystartsjobb.
Serkan Köse (S)
Madam Speaker! Thank you, Magnus Persson, for your speech! I do not know if the research in Sweden agrees with the member regarding the inefficiency of the subsidized employments. It is also claimed in this report that subsidized employments, if properly designed, can yield results.
But the Sweden Democrats have stated in their follow-up motion that the new start jobs are poorly designed. Despite this, the Sweden Democrats have not acted to rectify the problem. The Sweden Democrats have, among other things, said no to our proposals for assessment in each individual case and requirements for collective agreements.
Today, we in the Committee on Employment have submitted a sharp proposal to stop all new grants of "nystartsjobb" (new start jobs) until the government has taken measures to gain sufficient control over where the money is going. The member also mentioned this in their speech.
The Arbetsförmedling's case officers also need to assess that wages and insurance are in line with collective agreements. It is a time-consuming effort. It requires more resources, and it also leads to incorrect assessments and abuse. Therefore, I would like to ask the member Magnus Persson: Is the member prepared to support our proposal to stop all new grants of nystartsjobb until the government has handled this system?
I and the member are in agreement that the system is poorly designed. We need to do something, and now we have the chance to get this in order. Therefore, I wonder if the member is ready to stand behind the Social Democratic initiative today.
Magnus Persson (SD)
Madam Speaker! The new start jobs are a budget issue, and we negotiate the budget with the government.
We had a very successful negotiation when it came to the extra services. They are no longer there today. How the budget negotiations regarding the new start jobs will turn out I do not know, but we do not negotiate the budget with the Social Democrats.
The Social Democrats do not want to negotiate with the Sweden Democrats at all. They do not want to discuss anything.
The Chairman mentioned the labor market test in his previous speech. That proposal lay on the table in the chamber for eight years. You constantly voted no to the proposal, because it was more important for you to retain power with the Center Party. It was the same when it comes to the collective agreements. It was you who removed that requirement.
It is you who have worsened the regulations regarding the nystartsjobb. It is your policy that has made it accessible to crime. You loosened it through the January agreement in the spring budget before 2019. It was you who were the contributing factor, not the Sverigedemokraterna.
We negotiate budget issues with the government. We do not negotiate budget issues with the Social Democrats.
Serkan Köse (S)
Madam Speaker! The answer from the Sweden Democrats is clear: They do not intend to do anything regarding this important issue. So, that is how I interpret the member's answer.
This is not a budget issue. We mean that we can stop new appropriations. We can do that here and now.
I still wonder if the Sweden Democrats are prepared to support a proposal that means all new grants shall be stopped for the time being, because both I and the member are in agreement that this system does not work. It fosters crime. The money goes to the wrong measures, and billions disappear into the black market.
Here and now we can do something, Magnus Persson.
Then the question to Magnus Persson is again: Does the member intend to stand behind the Social Democrats' initiative today to put a stop to new nystartsjobb until we have sorted out the system, or does the member intend to wait until the next budget while the money rolls out in the black?
Magnus Persson (SD)
Madam Speaker! I cannot answer that. It is quite difficult to answer that question, because the Social Democrats are not allowed to negotiate with the Sweden Democrats.
My door is always open if you want to discuss these issues. You could have come into my office before you submitted the initiative and asked where we stood on the matter. But Serkan Köse's party leader has forbidden you from negotiating with us.
I would very much like to discuss the issue with the Social Democrats. Serkan Köse stands here and tries to score cheap political points by pointing fingers and claiming that we do not want to do things. But you are not allowed to talk to us – why would we buy your politics outright?
We are negotiating with the government, and those negotiations are going quite well for us. We got the extra services removed, and we will also negotiate about the restart jobs. Do not try to pick up cheap political points by claiming that the Sverigedemokraterna are betraying! We are not doing that.
We have achieved significantly more in the fight against abuse regarding these jobs over two years than you achieved in eight years. It was more important for the Social Democrats to remain in power, so they let the Center Party and the Liberals steer the agenda when it came to the labor market measures. Now we see the result. Crime is increasing, and the "nystartsjobb" are being abused even more.
The Social Democrats removed the requirement for collective agreements, Madam Speaker. It is quite remarkable. It was solely because they wanted to stay in power. It was the most important issue ever for the Social Democrats in the labor market area, and they sold it out to retain power.
Yes, we negotiate when it comes to the nystartsjobben. We are negotiating in the current situation with the government, because the Social Democrats are not allowed to negotiate with us. It is simply a matter of regret.
Magnus Jacobsson (KD)
Madam Speaker! The National Audit Office makes the assessment that the controls that Arbetsförmedlingen performs when subsidized employment is granted are ineffective due to outdated IT systems and cumbersome administration. The National Audit Office also makes the assessment that the design of subsidized employment entails a risk of abuse, particularly regarding nystartsjobb.
The Swedish National Audit Office, which has written a report on this, submits the following recommendations to the government:
Ensure that the risks in startup jobs are matched by adapted requirements for controls.
Review the regulations specifying how Arbetsförmedlingen shall monitor employers who lack collective agreements, so that good employment conditions can be secured without the handling becoming too costly.
Review the system for the recovery of incorrect payments so that Arbetsförmedlingen is given the conditions to collect incorrectly paid compensations in an effective manner.
The Government, for its part, is aware of the problem and has taken measures to improve the work within Arbetsförmedlingen. The Government has, among other things, changed the Director General of Arbetsförmedlingen. Maria Hemström Hemmingsson has already begun the work to make Arbetsförmedlingen more efficient and focus on the core activities. Furthermore, she has been to the committee and given an absolutely splendid presentation on how she intends to work with this.
Furthermore, the government has established a payment authority from 1 January 2024, which aims to address a portion of the fraud. The government has also appointed an inquiry into improved opportunities for information exchange between authorities.
Furthermore, in February 2024, the government decided to ask the Council on Legislation to comment on a proposal for a new law on the obligation to report incorrect payments from the welfare system as well as fraud.
As a Christian Democrat, I share the Swedish National Audit Office's concern in many respects. I agree with their views. I think it is very good that the government is taking measures.
With this, Madam Speaker, I move for approval of the committee's proposal. I may not get the opportunity to stand at the rostrum again, so I take the chance to wish everyone a good summer!
Source: The Swedish Parliament. The speeches come from the open data of the Riksdag, translated into English by AI, which may contain errors.