Response to interpellation 2023/24:134 on the government's objective with the labor market policy
Translated from Swedish by AI; the translation may contain errors. The Swedish text is the original.
Summary AI, written in advance
L believes that everyone who can work should work and that the systems must be designed so that it is profitable to move from benefits to work. L argues that the labor market policy needs to be cost-effective with high requirements and clear activity requirements. L believes that the government's proposal creates sufficient conditions for Arbetsförmedlingen. L wants to strengthen the work line, the education line, and the language line 1 and advocates for time limits for SFI 2. S argues that the government lacks a clear objective for the labor market policy 3. S advocates for an active and individually adapted labor market policy where money goes towards equipping people for vacant jobs 3.
Written by AI in advance and may contain errors. The numbers lead to the speech a statement builds on; check against the text below.
Arbetsmarknads- och integrationsministern Johan Pehrson (L)
Madam Speaker! Serkan Köse has asked me whether I and the government have set any specific goals for the labor market policy, and if so, which ones. Furthermore, he asks whether I and the government consider the government's measures within the labor market policy to be sufficient to handle the worsened situation on the labor market, and if not, what additional measures I intend to take.
The government continues the work to re-establish the work principle. Everyone who can work shall work. It is a prerequisite for the Swedish welfare society. Despite the fact that Sweden has a high employment rate, there are many who do not support themselves through their own work. To counteract this, both the transfer and tax systems must be designed so that it is profitable to move from benefits to work.
The labor market policy needs to be designed so that more people enter employment and that it becomes more cost-effective. High requirements shall be set for those seeking jobs combined with the fact that the unemployed are offered support and interventions. There shall also be clear activity requirements for receiving benefits.
The parliamentary objective for the labor market policy is that the measures shall contribute to a well-functioning labor market.
The Government has, in Arbetsförmedlingen's regulation letter for 2023, decided on goals, reporting requirements, and assignments. Arbetsförmedlingen shall, among other things, prioritize the work with persons who are or risk becoming long-term unemployed in order for these persons to transition to work or education. The agency shall also counteract incorrect payments from the welfare system, and the work with an efficient and legally secure case processing shall be strengthened. Arbetsförmedlingen was also assigned the task to improve geographical and professional mobility among the unemployed. Those who are without work must be prepared to retrain or seek jobs in another municipality.
The Swedish Public Employment Service's appropriation letter for 2024 is currently being prepared in the Government Offices.
The Government's proposal in the budget bill for 2024 is judged to create sufficient conditions for Arbetsförmedlingen to handle the worsened situation on the labor market. In the bill, an increase of Arbetsförmedlingen's administrative grant by 200 million kronor is proposed to meet increased unemployment and strengthen the control work. Together with other proposals in the budget bill, for example an enhanced job tax deduction for low- and middle-income earners, the proposed investments within labor market policy contribute to a strengthened work line.
The government also proposes more places within the vocational higher education and within the vocational adult education so that access to such education is improved and more can quickly enter the workforce. The investments are crucial both for Sweden's competitiveness and for individuals who get a better opportunity to enter the workforce.
The transition and skills support and the transition study support also increase individuals' opportunities to obtain or retain a job.
By prioritizing cost-effective measures within the labor market policy that are close to the workplace and that contribute to a high level of job-seeking activity, opportunities are created for those who are nevertheless forced to leave their jobs to move on to studies or to other jobs.
Serkan Köse (S)
Madam Speaker! I thank Johan Pehrson for the answer.
It is a worrying time for Sweden, a time marked by economic uncertainty and challenges in the labor market. In this context, I intend to focus on three central aspects, namely the current economic situation, the labor market's challenges, and the government's role and the need for concrete measures.
Let us first look at our economic situation. The forecast for 2023 indicates one of the weakest economic developments in our country's history with a declining GDP and an expected growth that is the lowest in Europe. This decline, reinforced by a cost crisis and an economic crisis, has led to many households now struggling with their finances and with paying their bills. We also see a worrying inflation that is higher than our neighbors', which affects every citizen's economy and standard of living.
Secondly, the situation on the housing market, which I also mentioned in my previous interpellation, is very alarming. The housing market has long been a growth engine in the Swedish economy, but now we see that housing construction is decreasing dramatically. It is the largest decline since the 90s crisis. This threatens not only our current economy but also future growth opportunities. The situation directly affects the labor market as a shortage of housing makes it harder for people to move to where the jobs are, which in turn leads to an exacerbated skills shortage.
Thirdly, we now see, despite previous resilience, a clear slowdown in the labor market. We still have a relatively high employment rate, but it is worrying that the number of hours worked and temporary employment are decreasing while layoffs increase. This points to a concerning development, especially considering that we expect a continued increase in unemployment over the coming years.
In light of these challenges, one might ask what Johan Pehrson and the government are doing. Incredibly, Johan Pehrson chooses to reduce the resources for Arbetsförmedlingen and the active labor market policy - and that in a time when more resources were needed to equip people to return. When the entire economy and inflation turn, we will have an enormous skills shortage.
It is also noteworthy, once again, that one is cutting the labor market policy by 2 billion before next year. If we compare this year with how it has looked previously, we can well say that one is halving the efforts for active labor market policy - in a time when more labor market policy was needed, more resources for education and more resources for skills development so that we can equip people for the jobs that exist today.
It is also noteworthy that Arbetsförmedlingen is not receiving the resources it requests, Madam Speaker. Johan Pehrson says that the appropriations are increasing by 200 million kronor, while Arbetsförmedlingen's assessment is that at least triple that amount is needed. Unlike Johan Pehrson, we Social Democrats propose increased investments in active labor market policies and an increased administrative appropriation for Arbetsförmedlingen. We believe that these measures are important to strengthen the labor market and ensure that Sweden navigates through this crisis with a strong and well-functioning labor market.
In view of this, I wonder, once again, whether Johan Pehrson has set any specific goals for the labor market policy and, if so, which ones. I would very much like the Minister to say something about this.
Given the worsened situation we have on the labor market today, I also wonder, once again, what concrete steps the government intends to take to ensure that unemployment does not continue to rise and that those who are now losing their jobs receive the help and support they need for a quick reentry into the labor market when it turns.
Arbetsmarknads- och integrationsministern Johan Pehrson (L)
Madam Speaker! It is clear that it is a very difficult situation that people find themselves in. We have an all too high unemployment rate, and we need to increase employment, not least in those groups that today find themselves far from the labor market. It can be about people who have actually never had a regular job.
This is a difficult task. We have a significant number of billions allocated to labor market policy, but it is correct that we, for example, are changing the regulatory framework for those who work within [the field] by investing more in vocational training and the University of Applied Sciences, which I have mentioned previously. We are now letting the establishment jobs emerge, and we believe that they can be a very important support in the work with this change.
The goal, which is bound by the Riksdag, is that we shall ensure that we have a well-functioning labor market. But an educational debt takes time to educate away. Deficiencies in the Swedish language take time to rectify. And as regards the availability of work, it depends very much on how it goes for Swedish companies. In a time of economic crisis, one must keep the focus on the main goal, and that is to hammer out inflation. There is no shortcut, however much Serkan Köse - who raises important questions - wishes. One cannot get around this in any way.
One can always pursue a more social democratic labor market policy, but it has always entailed increased costs for the taxpayers and less efficiency. It has also not led to Europe's lowest unemployment, but rather almost the opposite. Then one must, of course, be prepared to take a different path, to tread a new trail, and here a bit of reconsideration from the Social Democrats would be needed.
It is possible to turn this around; we see that jobs are emerging in the municipalities that have a strong development. There, we have another, more so-called "pleasant" problem, namely that in a rapid expansion, there are people who do not move there. Then one must meet it through training of the labor force that is missing. There is labor, but it perhaps does not have the right education. That is why we are making these investments in more regular education.
I would, however, like to emphasize that I am very happy that we - hopefully soon, at the turn of the year - can see the establishment jobs, which are so important and for which the parties have taken a great responsibility to develop. They are an important part in meeting, not least, people who have been long-term unemployed - or who perhaps have never even had a regular job at all.
Serkan Köse (S)
Madam Speaker! What Johan Pehrson calls increased costs, we call investments. They are investments in competence and in people, so that they are equipped with the skills demanded on the labor market and can be ready to take those jobs. We call it an investment and a support – Johan Pehrson calls it a cost.
To have the EU's lowest unemployment was a goal. It was the social democratic government's goal at the beginning of 2014. It was a good goal. It is important to have goals in politics, even if one might not reach all the way afterwards. I have several times asked Johan Pehrson what the Liberals have for goals. It would be interesting to know if Johan Pehrson has any goal with the labor market policy.
We Social Democrats are clear and have a clear goal: to achieve full employment. To achieve full employment, an active and multifaceted labor market policy is required. This means a broad spectrum of measures tailored to individual needs, such as labor market training, subsidized employment, and work-oriented rehabilitation. The importance of cooperation between municipalities and Arbetsförmedlingen cannot be overstated in this case, especially when it comes to integrating a chain of interventions for those who are far from the labor market. It is a political goal.
The Swedish social contract contains not only rights but also requirements and expectations. Those seeking work shall actively participate in the measures offered to improve their chances on the labor market. It is also a goal, and Arbetsförmedlingen plays a central role in that context. Their mission is to improve the functioning of the labor market and support the skill supply, and we think that is important. Regardless of where in the country one lives, Arbetsförmedlingen shall be accessible, and support shall be provided.
We can state that Arbetsförmedlingen and the labor market policy have received fewer resources with Johan Pehrson's policy in recent years, from 2019 until today. It is fewer resources for the people who need measures to be equipped to be able to take the vacant jobs. Unlike Johan Pehrson, we want to strengthen Arbetsförmedling's assignment capacity and ability to offer an equal and equitable labor market policy.
Madam Speaker! Labor market policy is also linked to education policy. It is crucial that our education system meets the needs of the labor market and that the number of participants in, among other things, labor market training increases. Johan Pehrson and I have on several occasions had debates about the fact that we need to ensure that we also expand the labor market training.
The green transition that Sweden faces - this too we have debated many times - requires, above all, a properly trained workforce. We Social Democrats see it as a national priority to ensure that our education system and our labor market policy are well-equipped for these challenges and that they interlock much more clearly than they do today.
We Social Democrats also believe that a combination of rights and requirements is needed. A well-thought-out and funded employment service and a strong link between labor market and education policy are necessary for us to manage the challenges we have on the Swedish labor market today.
Given the current challenges and the clear lack of a purposeful labor market policy from the government's side, I would like to once again pose the question to the Minister: How does the Minister intend to ensure that Sweden's labor market not only recovers from the current recession but is also strengthened to meet future challenges, including the necessary transition to a more sustainable and equal economy? What will the Minister for Employment do to ensure that education policy and labor market policy dock into each other much more clearly than they do today?
Arbetsmarknads- och integrationsministern Johan Pehrson (L)
Madam Speaker! If I do not remember entirely incorrectly, it was a Social Democratic government that for eight years ensured that we pursued the policy we did. One must take responsibility when one sits in the government. You cannot just stand by on the sidelines and say afterwards that it was someone else. It doesn't work. It is like a child who has eaten all the cheese puffs on Friday night and who has cheese puffs everywhere but still says that it was someone else who did it. You have stood for the line that Sweden has pursued.
Serkan Köse and I agree that an active labor market policy must be built on more than what is done at Arbetsförmedlingen. We have a mandate for more labor market trainings. When Arbetsförmedlingen reports back to me, they report how difficult it is with procurements, and they surely also do so to Serkan Köse when Arbetsförmedlingen is in the committee. That is why we have a new board in place. That is why they have a clear mandate to strengthen this. They shall review their entire procurement system because more labor market trainings are required.
I am quite sure that Serkan Köse also thinks it is good with vocational adult education and the university college. There, we are now expanding the activities, which are more regular education.
It is also the case that the Social Democrats did a meritorious job because there is now an opportunity, which we have truly embraced, to dimension the upper secondary education in such a way that one can try to steer towards where the jobs are. It requires extensive work to ensure that young people study for more vocationally oriented - and important - educations for, for example, healthcare and care professions, industry, or installations. It is completely central. This is also an important piece of work that is being done.
If this is to be successful, however, one must start early in school. Regardless of what they are to study, children must learn to read, count, and write early on. That is why we are shifting the school policy away from the screen-fluff that I was mentioning earlier.
People who have come to our country, perhaps many years ago, must learn Swedish. That is why we are restructuring Swedish for immigrants in an attempt to increase the impact when one enters the teaching early. One perhaps should not have any length of education. Just as primary school is usually limited to three years, there should be time limits for SFI. We also include that one should be able to combine Swedish education with another activity, for example an educational effort, to enter employment faster.
It is a long way. There is a large educational debt and a large language debt. This must be bridged by equipping people. That is why we are making changes within the expenditure area and, for example, allocating more to vocational training. We think it is good. I stand behind it one hundred percent.
I understand - and have understood - that the Social Democrats have always wanted to spend even more money on other measures. We have talked about extra services and other things that the Social Democrats have truly loved. I believe more in establishment jobs, however. I believe that this will ultimately lead to more regular jobs for the persons concerned than the extra services have done. All evaluations have shown that measures with a regular job as a clear goal are better. This applies in particular to the establishment jobs.
Serkan Köse (S)
Madam Speaker! Let us state, Minister, that the work with the establishment jobs was initiated by the Social Democratic government.
It is clear that Johan Pehrson has no objective for the labor market policy, which is what the interpellation is about.
I mentioned the housing market crisis today and the rising unemployment. These are important issues that require concrete and effective measures. We see a slowdown in the labor market combined with historically low housing construction. This implies great challenges and makes it harder for people to find work where it is needed most.
Unfortunately, we have a government that lacks a clear objective in this critical time. Instead, blame is placed on the previous Social Democratic government. Despite the fact that Johan Pehrson has been Minister for Employment for a year and a half, the list of reforms is still empty.
Reacting only to crises is not enough, Madam Speaker. We need a proactive and well-considered strategy that addresses both the current and future challenges in the Swedish labor market.
Unlike Johan Persson's government, the Social Democrats have a clear vision of full employment. Everyone who can work shall work. Work, Madam Speaker, is not only fundamental for the individual's livelihood and freedom, but it is also the core of our collective welfare.
In order for this goal to be achieved, an active and individually tailored labor market policy is required. It is important that Arbetsförmedlingen has sufficient resources and sufficient support to effectively carry out its mission. It is not about us having a lot of money to distribute, Johan Pehrson, but it is about the money going towards equipping people for the vacant jobs that exist today.
I am still interested in what concrete measures Johan Pehrson has to promote job creation, support the transition, and revive growth in our economy.
Arbetsmarknads- och integrationsministern Johan Pehrson (L)
Madam Speaker! Let me clarify what we are doing. There is an entire section with quite a few billions. We have debated this as much as anything, but I can list it again. It concerns strengthening the work line, strengthening the education line, and strengthening the language line. I have great respect for the fact that Serkan Köse wants a different tone in this and perhaps wants more extra services and fewer establishment jobs, or whatever mix one chooses. Sometimes, however, one must prioritize.
I take note of what Serkan Köse said about the social contract. I think that sounds like old-fashioned fine social democracy. I get quite heated when I hear Serkan Köse think the idea that there is a contract where there are rights and obligations.
I also heard Serkan Köse mention Arbetsförmedlingen's assignments. That also sounds like sweet music, I think. Perhaps there is a review underway in that area as well to put more force into this. We have a strong unemployment insurance fund, but it is intended to be used when there are no jobs. If there are jobs, one must, as I have mentioned, be prepared to educate oneself and perhaps move to another municipality. It is important to assign more, so that people's time in unemployment becomes as short as possible.
I take note of this. I look forward to more debates where we talk about the importance of setting requirements, because that is to care. Opportunities must be followed up by the individual's personal responsibility.
I also take note of the idea of a social contract and that everyone should work. One must give meaning to this, and I look forward to hearing more about what the Social Democrats mean.
I am convinced that we can find common ground here. It is not a day too early. We have found common ground before, but it is the content of the politics that is decisive.
Source: The Swedish Parliament. The speeches come from the open data of the Riksdag, translated into English by AI, which may contain errors.