Response to interpellation 2023/24:182 on the role of the Nordkalotten Foundation in the green transition and the supply of skills in northern Sweden

Arbetsmarknads- och integrationsministern Johan Pehrson (L)

Madam Speaker! Serkan Köse has asked me if I can describe how the Nordkalotten Foundation's strategies and activities are planned to be changed or developed to support the labor market in northern Sweden, particularly regarding the skills supply for the green transition, compared to its current measures. Furthermore, Serkan Köse has asked me what incentives and support measures are being considered to encourage and facilitate for people to move to northern Sweden, where there are job opportunities.

In northern Sweden, an extensive re-industrialization is underway linked to the green transition. In order for the labor supply to be matched against the labor market's needs, among other things, the labor market and education policy need to be designed so that more people are given the conditions to educate and further educate themselves to better match the competence that employers demand. This is also something that I have raised in several interpellations earlier in this chamber.

Let me begin by stating that the Foundation Utbildning Nordkalotten, based in Övertorneå, is a unique collaboration that we cherish. It contributes to developing the labor market, increasing competence and competitiveness, and strengthening Nordic cooperation, primarily within the northern parts of Finland, Norway, and Sweden. The Foundation operates in one of Sweden's industrially and economically fastest-growing regions. The Foundation offers training in industries where more employees are needed, for example, automation technology, health and social care, as well as mechanics within heavy machinery and vehicles. Training towards, or with elements of, IT is today the largest training area in the Foundation's operations.

Many of the participants assigned to the training programs are far from the labor market. The foundation's activities are distinguished by a holistic solution that includes housing and education in the same location and good opportunities for individual adaptation of the training, which is particularly important for a target group that often has poor experiences from school. The student-social perspective is also an important part of the foundation's activities. For many students, studying at Stiftelsen Nordkalotten means an opportunity to break away from an environment that has a negative impact on their studies.

In the new agreement, the foundation receives a clearer mandate to improve the support for the students beyond the purely pedagogical, with the aim that more should be able to complete their studies.

The Government has, subject to approval, signed an agreement on continued operations in the foundation, which has been submitted to the Riksdag in a proposition. An approved agreement means that the foundation's operations are enabled for the period 2024-2027.

Arbetsförmedlingen refers job seekers to the training places provided by the foundation. Arbetsförmedlingen can offer travel allowance and compensation for double housing in connection with participation in labor market training, which can stimulate increased mobility in the labor market.

The Foundation Utbildning Nordkalotten has a limited but important role to play in the efforts to meet the needs for competence in the labor market. This applies in particular in relation to the ongoing green transition in the northern parts of the country.

However, to promote mobility in the labor market, a broad policy is required. The Government's work to re-establish the work principle continues. In the budget bill for 2024, several changes are proposed for a more efficient labor market policy. In the regulatory letter for 2023, Arbetsförmedlingen was tasked to support, monitor, and follow up on search activity, including the geographical and professional mobility among the unemployed. Furthermore, it was included in the mandate that the agency shall continue to strengthen and develop its work with labor market policy interventions and employer contacts. To improve the conditions for handling increased unemployment as well as to raise the quality of the agency's monitoring work, the Government has proposed an increase of Arbetsförmedlingen's administrative grant by 200 million kronor in the budget bill for 2024.

Together with other proposals in the budget bill, for example an enhanced job tax credit for low- and middle-income earners as well as more places both within the university colleges and the vocational adult education, the proposed investments in labor market policy contribute to strengthening the work line.

As stated, the government takes the competence challenge very seriously. This is especially true in perspective of what is happening in northern Sweden. I will closely follow the developments moving forward.

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Serkan Köse (S)

Madam Speaker! I thank the Minister for the answer.

The Nordkalotten Foundation has since 1970 played an important role in promoting labor market training and Nordic cooperation. The foundation contributes in a valuable way to the skills supply in northern Sweden, even if in this case it concerns 145 places per year.

There is no doubt about the foundation's importance for the labor market and the supply of skills. It is interesting that the Minister, in his response, makes a huge deal out of an existing agreement being extended. But I will not take the joy away from the Minister, because it is, after all, the first proposition that comes from the government. It is a historic moment, Johan Pehrson. Happy!

When we turn our gaze towards the deeply rooted skills shortage, which is directly linked to the green transition, another picture emerges. There is a lack of clear national insight on how this challenge should be handled, despite it being an issue that I have debated with the Minister on numerous occasions in this chamber.

The challenge of finding the right competence is great on the Swedish labor market today. A report from Sveriges Kommuner och Regioner shows that we have an enormous competence challenge until 2030. For example, the welfare sector needs to hire 410,000 people until 2031 due to demographic changes, among other things.

We can also see that Industriarbetsgivarna point out that the green transition in northern Sweden can create 50,000 new jobs in areas such as battery manufacturing, mining and electric vehicle production. This does not only mean new job opportunities but also a comprehensive challenge on the Swedish labor market. How shall we prepare our workforce for these new roles?

Another important aspect is the entire digital transition, which is an integrated part of the green transition. We need to ensure that our country not only keeps up with the development but also leads this change. But here, Madam Speaker, comes my deep concern regarding the government's current way of handling the challenges. Despite these clear and present challenges, the government has chosen to reduce resources for the labor market policy - which we have discussed all afternoon here - to Arbetsförmedlingen and to the programs. I want to assert that the cuts are not only worrying but also directly undermine our ability to manage and meet the growing needs of the labor market.

Unlike Johan Pehrson, we Social Democrats believe that more resources are needed, once again, for an active labor market policy and that the state must take a greater responsibility in this case. A national plan was needed to better oversee, map out, and coordinate the work with the skills supply, because the need exists. The state needs to step forward and take an active role, because how else are we to manage the skills supply? The Nordkalotten Foundation wants us to purchase 145 places per year. That is important, but it does not mean that we will manage the entire skills supply. SKR, once again, needs 400,000 and the industry 50,000. The need is just growing everywhere.

Again: What is the government's answer to Sveriges Kommuner och Regioner regarding the acute skills shortage in the welfare sector? What concrete measures does the government propose? What is the answer to the industry, which faces an enormous need for skills supply? This applies particularly to the areas I mentioned: battery manufacturing, mining, and electric vehicle production. What support can these companies expect from the state to manage the upcoming transition and the skills requirements?

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Arbetsmarknads- och integrationsministern Johan Pehrson (L)

Madam Speaker! It is a fantastic development that is now taking place. After the government took office, new investments have been presented. This is due, not least, to the fact that we have restructured the energy policy. There was a debate on this matter in the chamber earlier today. It is so incredibly important that we get the base load and the growth in regulated power in the form of Swedish nuclear power.

I assume that everyone who is interested in a functioning labor market will now stand behind this, because it is not only people who are needed but also electricity production, preferably in the form of wind and solar. But we must also have the capacity of base load power for the system to function.

Arbetsförmedlingen has opened special offices in both Skellefteå and Luleå to meet the need, which is very important. We are working to ensure that Arbetsförmedlingen increases the requirements for people to further their education. They shall have the opportunity but also requirements to do so in order to equip themselves for the jobs that exist. They shall also be prepared to move. We shall ensure that the employers follow up on this in a better way.

We are making a large, unique investment in STEM, for example, engineering initiatives. Not least, Luleå University of Technology will be of benefit to meet the demand for increased competence. This applies to the engineering programs but also to the growth of the university colleges. This fantastic activity has had such a positive history, which the previous liberal bourgeois government introduced and which the Social Democrats nurtured, I want to emphasize, during your years in government. Now we see to it that it grows further, as it yields great effect and is very popular among the employers, together with the vocational adult education.

This is the basis for rebuilding the education gap that lies between the high demand for labor and an all-too-high unemployment in Sweden. It is a matter of getting people to be able to equip themselves for the jobs that are still vacant, but also those that will emerge as these industries continue to develop. Foreign actors are also making large investments in Sweden, because there is such strong belief in Sweden with the political direction we have. It is central for Sweden and our green transition but also globally seen, for this is a challenge for our entire planet.

That we are so popular when it comes to producing both batteries and other components in the green transition is simply fantastic. Just take what is happening a bit further south, in Ludvika, for example. It is fantastic. We see it in other places in Sweden as well.

There is a belief in Sweden now that we have a stable energy policy. We are investing in engineering education, and we are investing in vocational adult education to transition people who are in Sweden, who are ready and who are an asset with the right competence in place. But also with the university college, this is viewed positively.

We have promised a strategy for this that is broader. I usually point out that Peter Larsson, within the framework of Tillväxtverket, now has an important role to play, and he reports repeatedly. But he naturally returns to all of the government's ministers on the issue on an ongoing basis.

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Serkan Köse (S)

Madam Speaker! I thank the Minister for the answer. I look forward to this national strategy.

I believe it was at the beginning of this year that Johan Pehrson wrote a debate article together with Ebba Busch where they promised a national strategy and a super ministry. I look forward to us getting a super ministry that will handle this. It will be needed. A national strategy was needed, and some kind of super ministry, or whatever it shall be called, was needed to handle the challenges we have today with the skills supply.

We have also debated vocational labor market training previously. I nevertheless want to emphasize that they play an important role in this context. But the number of participants in them has decreased. Today, it is only about 6,000 individuals who participate in these trainings. That is very few, and it is important that the number of places increases. Unlike the government, we Social Democrats propose that the number of places should be doubled in the short term.

But these educations also involve challenges. When we read annual reports, not least from Arbetsförmedlingen, we see that the educations are very unequal. Three out of ten who participate in them are women, and seven out of ten are men. It is thus very many men who attend labor market educations. The women pay for their own education.

Then we have the problem with the entire procurement process. There are long lead times and appeals.

So there are problems in this regard. And Johan Pehrson may perhaps need to return with how he intends to solve these challenges.

Madam Speaker! Internationally, Sweden lags far behind when it comes to labor market training. Denmark invests an enormous amount - many billions - in labor market training.

Madam Speaker! Once again: In the economic situation we find ourselves in, where unemployment is increasing, it is incredibly important to invest in education and to invest in labor market policy. Therefore, we Social Democrats propose 1 billion kronor more than the government for active labor market policy so that we can meet the economic challenges, so that we can ensure that people can be retrained and so that we can manage the skills supply.

At the same time, it is important to increase the number of places within adult education to strengthen lifelong learning. A fundamental factor for a strong labor market is that there are resources for adult education. Here, we are investing 800 million kronor more than the government on more education places within adult education next year.

Madam Speaker! In conclusion: On the Swedish labor market, as has been said, there is a clear imbalance between available jobs and the skills of job seekers. Despite high unemployment, there is a large demand for labor within many sectors. Here, the government needs to step forward and take greater responsibility regarding how the recruitment problems that we have on the Swedish labor market today should be handled. But this is not facilitated by the government's cuts within these areas.

Given the decrease in the number of participants in vocational labor market training and the growing imbalance between the skills of the workforce and the needs in the labor market, I wonder how Minister Johan Pehrson intends to handle these challenges. What is the strategy and plan? What is the Minister for Employment's vision for us to achieve a better functioning labor market?

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Arbetsmarknads- och integrationsministern Johan Pehrson (L)

Madam Speaker! It is clear that I have also noted that the Social Democrats for next year, in the expenditure area we are talking about, have more money than the 92,059,000,000 kronor that is estimated. And when one is in opposition, it is much easier to give more money to everything. But I want to raise a warning finger. When I was at a seminar about Kjell-Olof Feldt's book Alla dessa dagar, he warned against being able to have money for everything.

And I want to emphasize that when I speak with the business community, with municipalities, with regions and with the labor market partners, they are clear that there are some fundamentals that are crucial. This applies not least to the investments in engineers, in the university colleges, in vocational adult education and in the entire youth school, where one steers more towards the professions that are in demand. It is a difficult challenge. But it is up to all of us to steer towards educations that give young people the opportunity for jobs where the labor market is seeking new employees. That is what decides. And the foundation is a strongly functioning energy policy that provides a belief in the future so that these investments are realized.

Regarding the labor market trainings, it is correct that I thought a new board was needed with people who had experience working in agencies that are very popular and who have managed difficult transitions, and people with broad experience from employer organizations. It also emerges here that there has been too poor contact between Arbetsförmedlingen and not least local and regional actors for the labor market trainings to be correct and for the right people to be able to apply for them. This has also been highlighted in previous answers from me during the evening. But I will honestly say that this runs parallel with better procurement and requirements for equality, as Serkan Köse was touching upon. It is also required that people are truly equipped to be able to participate in a labor market training. It is demanding. Just anyone cannot simply go through one because they have been far from the labor market for a long time. One must also be equipped in such a way that one can manage to go through such a training. It often requires, not least, knowledge of the Swedish language for the training to be effective for all participants.

So, there is a job to be done for Arbetsförmedlingen. My expectation is that they shall live up to the requirements that the number of labor market trainings shall increase and that they shall be more egalitarian. And the procurement is a nut that Arbetsförmedlingen has to crack. This is, however, regulated by quite a lot of legislation from not least this chamber but also a good deal of EU legislation.

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Serkan Köse (S)

Madam Speaker! I thank the Minister for the discussion. It is important because the Swedish labor market faces gigantic challenges, not least the skills shortage. We have over 120,000 vacancies today, and we have 400,000 unemployed. There is therefore a mismatch on the Swedish labor market today, and we must take it seriously.

Here, measures and resources need to be put in. Unlike Johan Pehrson, we allocate slightly more money to Arbetsförmedlingen's administrative grant, because we believe it is needed. We consider that more resources are needed for Arbetsförmedlingen to fulfill its mission, not least in a recession. Johan Pehrson talks about increasing labor market training, but there are no funds for this. We add more funds to labor market policy programs and interventions than Johan Pehrson.

Johan Pehrson previously had a confidence that the nystartsjobben would solve all problems, and now we note that even Johan Pehrson has understood that the nystartsjobben are not the solution. That is good, because it is a rights-based measure that I think one needs to review. There are also reports showing that the nystartsjobben are utilized very much within labor market crime.

The question of skills supply is important, and some type of national coordination is needed there. It is needed that Johan Pehrson steps forward. One can look at, for example, our neighboring countries Norway and Denmark – there, the government, the business community, trade unions, educational institutions, and so on work very successfully together, but there the state takes a slightly larger responsibility. When does Johan Pehrson intend to step forward and take a slightly larger responsibility so that we can handle the skills supply issue? What is the answer to SKR, and what is the answer to the industry? What role does Johan Pehrson intend to play in everything that is happening on the Swedish labor market today?

I thank you for the debate.

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Arbetsmarknads- och integrationsministern Johan Pehrson (L)

Madam Speaker! A fair amount is evident from the budget bill. There, the Social Democrats have slightly more resources than the 92,059,000,000 that we allocate alongside our enormous investments in the engineering programs, the university college, vocational adult education, and the primary school, which I told you about.

However, this will not be enough, and we must also continue to work with the business climate and an energy policy for the country and for the green transition. Those are fundamentals that allow us to see the positive in the challenge that people will no longer move away from Norrbotten and Västerbotten, but rather to Norrbotten and Västerbotten. We must embrace that and see it as positive.

Then this will take a few years; in Skellefteå municipality, for example, they say that one must grow slowly. Right now, there is a stop for housing, which has been up here. A couple of the projects have also been stopped. New things are being built, but some of the projects have been stopped due to inflation. They appeal to us: Bank out the inflation and get balance in the interest rates - preferably get the interest rates down - then these projects will start up!

The ambition is, therefore, to meet the enormous opportunities that exist. To this is added – we have not talked about this tonight, but we will be able to do so other times – the need for a functioning labor immigration to Sweden. It can also be a strong contribution by having people come here with extremely qualified competence and can be part of building Sweden together with all of us others. We receive an investigation on this in January, which will help in the work of getting the Swedish labor market in order and meeting the high demand for people that exists in not least Norrbotten and Västerbotten.

The interpellations debate was hereby concluded.

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