Response to interpellation 2024/25:144 on new-start jobs going to criminals
Translated from Swedish by AI; the translation may contain errors. The Swedish text is the original.
Summary AI, written in advance
The debate concerns "nystartsjobb" (new start jobs) that go to criminals. L argues that the government has taken measures to improve oversight, including a new payment authority, a new law on reporting obligations, and restrictions on hiring relatives 1 2 3. L emphasizes that subsidized employment is an important way into the labor market 2 and claims that the government's measures are more effective than what S desires 3. S considers the government to be paralyzed and that the system is poorly designed 4. S wants a labor market policy review, requirements for collective agreements, stronger oversight, and that new applications be paused 4 5 6. S argues that the government's measures are too small 5 6.
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 Mats Persson (L)
Madam Speaker! Patrik Lundqvist has asked me what I intend to do to ensure that the system of nystartsjobb is not exploited by criminals in the future.
Nystartsjobben are, after wage subsidies, the most commonly occurring form of subsidized employment and also the one that most often leads directly to unsubsidized work. It is central that payments from the welfare systems only occur to those who are eligible for support. The Government has therefore taken a number of measures to improve the possibilities for control and to prevent incorrect payments. The Government has, among other things, appointed an inquiry on improved possibilities for information exchange between authorities (dir. 2023:146).
On 21 December 2023, the government decided on a regulatory amendment aimed at improving the Public Employment Service's (Arbetsförmedlingen) possibilities to carry out checks of job seekers' right to work and reside in Sweden. On 1 January 2024, the Payment Authority (Utbetalningsmyndigheten) was established, which has the task of preventing, hindering, and detecting incorrect payments from the welfare systems through data analysis and audits of, among other things, payments for subsidized employment.
In March this year, the government submitted a bill with a proposal for a new law on reporting obligations to counter incorrect payments from the welfare systems as well as fraud, rule violations, and crime in the working life (prop. 2023/24:85). The law has been decided by the Riksdag and entered into force on 1 July 2024.
It is important that Arbetsförmedlingen, through various auditing measures, has the opportunity to ensure that the support provided to employers and organizers of labor market policy interventions is only used for its intended purpose. The Government has therefore, on November 7, 2024, decided on additional directives for the investigation into the labor market policy activities. The investigator is now also tasked with reviewing what conditions should apply for Arbetsförmedlingen's inspection visits to employers who hire with support and to organizers of labor market policy interventions.
The government has, from 2024 onwards, lowered the support levels for nystartsjobb (new start jobs). In the budget bill for 2025, the government states that it intends to implement certain restrictions for nystartsjobb in order to reduce the risk of abuse of the support. The restrictions concern, for example, the possibility of employing relatives with nystartsjobb and the possibility for employers who have recently laid off staff due to a shortage of work to re-hire with nystartsjobb.
The work to counter incorrect payments and subsidy fraud directed against the public sector is a high priority for the government. The government will continue the work to reduce the risk of abuse of subsidized employment, such as nystartsjobb.
Patrik Lundqvist (S)
Madam Speaker! It is a telling picture of the government's labor market policy that we are now standing here 25 minutes after we should have started this debate. That policy is conspicuous by its absence and has been so throughout the entire mandate period.
We have handled two propositions in the committee over two years, one regarding the a-kassa - absolutely very important and very large - and one regarding a missed appropriation to an educational institution. It concerned the Stiftelsen Nordkalotten.
This is a paralyzed government. A lot of good things are being done in other areas. It is very good to increase transparency between agencies, and it is very good to increase controls of various kinds and so on. But here, where one actually governs who is entitled to nystartsjobb, nothing is being done despite really stinging criticism from Riksrevisionen, for example.
In the spring, when we had a similar interpellation debate with the previous minister Johan Pehrson, he said this: "Rights! They are fine, Madam Speaker. There are such things in our constitution, and we Liberals believe in rights. I hear that the Social Democrats are hesitant about rights, that is to say, receiving support if there is not a political review beforehand. There must be someone who intervenes; if it is not a politician, it must be a civil servant. It is still interesting to take part in the distribution." That is what he said, very mockingly, about the control of state funds.
Yes, there will definitely be someone who interferes. Criminals can today start companies to hide other criminals from the authorities by employing them with the support of nystartsjobb. This can be done because it is seen by this government - or at least by the previous minister - as an inviolable right that the individual has, regardless of what. What is required is, in large measure, that one has been unemployed for a long time and is registered with Arbetsförmedlingen.
This is not enough. We must set higher requirements regarding both which individuals and which companies are entitled to this. Otherwise, we end up in situations where employees at Arbetsförmedlingen can read in the media that individuals they have granted nystartsjobb are located abroad. When they then go out to the workplace to check if the individual is there, they get the answer from the workplace that "he is on sick leave, you can come next week" – and then the individual is, of course, on site.
This is not a sustainable order. The rules for the nystartsjobb must be fundamentally changed to ensure that criminals cannot hide each other in fake employments with the support of the state. That is the fundamental problem. We cannot control this away through follow-up checks. It is quite obvious in any case in the stories I have received. But here we have a government that sees this as a right for everyone, regardless of who they are. So we really cannot have that.
Serkan Köse (S)
Madam Speaker! The "nystartsjobb" (new start jobs), which were introduced by the center-right government in 2007, have been the right's favorite measure and differ from ordinary labor market policy programs by the fact that the intervention does not require a referral from Arbetsförmedlingen. The subsidy is a right as long as the employee meets certain qualification requirements, such as having been unemployed for a certain period or being a newcomer in the establishment program. The purpose when this was introduced by the center-right government in 2007 was to make it easier and cheaper for companies to hire. With the benefit of hindsight, we can however state that the system has serious flaws, and it is the job seekers and society that pay the price for these flaws.
The Swedish National Audit Office has, as stated, audited the nystartsjobb and has pointed out extensive deficiencies in a report. The abuse is widespread, the control is insufficient, and the risk of fraud and work-related crime is higher here than in any other form of subsidized employment.
Madam Speaker! Arbetsförmedlingen's figures show that incorrect payments for subsidized employments exceed 1 billion kronor annually and that a majority of these errors are due to the employers. These funds could have been used to create real jobs, improve working conditions and strengthen welfare, but instead we see how the system is exploited, often by criminal actors who use nystartsjobb to hide money, milk the state or exploit people under unacceptable working conditions.
Madam Speaker! At the same time, the government has chosen to weaken the control further. From and including 2025, the support for trade union expression is being removed, one of the most important functions to ensure that employers follow rules and offer decent working conditions. This is happening at a time when unemployment is increasing and the need for effective labor market measures is acute.
Madam Speaker! This is a mockery of all those who are struggling to enter the labor market.
Due to the fact that the system is poorly designed and the result thereof, the Social Democrats have submitted a committee initiative. We want the "nystartsjobb" (new start jobs) to become a part of the labor market policy, with clear requirements and stronger protection. We want to see a labor market policy assessment, meaning that all subsidized employments shall be assessed based on the individual's and the labor market's needs. We want collective agreements as a basis; only employers affiliated with collective agreements shall have access to the subsidy. We want to see improved control; Arbetsförmedlingen shall be given resources to audit employers and ensure that the conditions are followed.
Madam Speaker! Every krona wasted on fraud is a krona that does not go to those truly in need. The Government's passivity in this matter risks eroding trust in the entire labor market policy.
My question to Minister Mats Persson is simple: When does the government intend to take the Swedish National Audit Office's criticism seriously and introduce the reforms required to clean up the system regarding "nystartsjobb" (new start jobs)?
Sofia Amloh (S)
Madam Speaker! I begin at the same end as my colleagues. We have seen the headlines after the media have taken up and scrutinized many examples of how people and systems are exploited by unserious companies that drain the system of tax money. It is completely unacceptable; we cannot have it that way.
The National Audit Office's criticism is massive, but the government chooses to take measures that are far too small in proportion to the problems. Therefore, the Social Democrats, along with several other parties, chose before the summer to submit a committee initiative to pause new applications for nystartsjobb so that measures could be taken to rectify the problems and ensure that no more tax money would go to fraudulent, unserious companies that exploit people. But the government parties have chosen not to agree to this and instead believe that the system should continue to run after minimal measures in relation to the problems.
It is important that the Minister answers our questions here in the chamber. Does the Minister intend to take some measures that truly change the system so that it is not possible to cheat with tax funds and contribute to criminal activity? Or does he intend to continue to look slightly to the side and let this continue?
Arbetsmarknads- och integrationsministern Mats Persson (L)
Madam Speaker! I thank the interpellor and the others for important questions.
An important part of Swedish welfare policy is that we have control so that incorrect payments are not made or that fraud does not occur in our welfare systems. In recent years, we have seen, area by area, how the extent of the fraud, the criminal elements, and the benefit crime have become clear. It is ultimately a threat to the entire welfare society that we all want to see and have and consider to be such an important part of the Swedish soul and Swedish society.
For people who have lost their jobs, different types of subsidized employment are an important way into the labor market. It has been shown to be a good way to get out and then eventually be able to support oneself. The goal is, of course, that as many people as possible should be able to support themselves. At the same time, these types of measures must also have reins and checks that ensure that incorrect payments are not made and that no fraud or inaccuracies occur.
It is against this background that we now have a payment authority that will handle the payment of welfare benefits. The Government is now making changes within the framework of the budget so that relatives cannot be employed in the same way in subsidized employment, and further ahead it will also be possible to conduct unannounced inspection visits - all this in order to reduce the risk of criminal elements and eliminate fraud in the welfare systems.
Patrik Lundqvist (S)
Madam Speaker! It is good that one narrows it down. But how many of the gang criminals in Sweden are actually related to each other? Does that boundary really make it harder for them to start companies and employ the others in the gangs so that they can get away with having a job on paper? Through this, they whiten incomes based on criminal activity.
The Director General of Arbetsförmedlingen visited the committee a few weeks ago, and her visit was one of the reasons why I submitted this interpellation. She confirmed then that criminals in some places do this, i.e., start companies or continue operating companies they already use to launder money and, with the help of state support, hire criminals in them to give them white incomes that they can use. Furthermore, the employees then escape certain authorities' demands that they should do something else. It is, in fact, inherent in the nature of the matter that these people have been unemployed for a long time, because they do not want any other job. But here they receive income via the nystartsjobben.
The government does not want to set other requirements but still seems to see it as a right. Okay, one should not be allowed to employ family members, fine. That is a step forward, but it constitutes a very small part of the problem.
The problem fundamentally is that one does not need to fulfill any requirements whatsoever and that there is no control of individuals or companies. That one should pay wages in line with the collective agreements is of course good, but otherwise there are largely no requirements that ensure that companies of the character I am talking about do not receive a share of these funds. We must ensure that. We cannot look at these funds in this way and let this continue.
It is very good to have follow-up controls, but it is significantly better to ensure that we do not end up in this situation from the very beginning.
This system has existed since the previous Alliance government. For a number of years, we had at least a requirement that collective agreements must exist at the company in order to be able to share in the money. But Mats Persson, his party comrades, and a few others demanded that that requirement be removed so that it would become easier for companies and create broader opportunities to share in this.
What Mats Persson himself spoke about is one of the results, namely that it is becoming more and more obvious that the criminals take a share of the money, feed and launder their activities and continue to earn large sums of money and find new outlets for what they earn from criminal activity. I really do not think the state should contribute to that. Therefore, we need to have control over who receives the money and who is entitled to the support from the beginning. That is where a substantial effort must be made.
The responsibility lies with the Ministry of Employment, but the government does not seem to be putting much effort into it at all. Small, admittedly well-intentioned, efforts are being made – but nothing that in a real sense addresses the issues we are talking about here today.
The gang criminals naturally have families too, but it is a very small part of the total mass. We need to make a real effort so that they get out of the state systems and do not receive a share of the tax money. This is a real mess that must be addressed.
Serkan Köse (S)
Madam Speaker! The nystartsjobben were intended to be a bridge back to the labor market, but today they are often seen as a backdoor for fraud and abuse. I share the Minister's analysis regarding subsidized employment and their importance in getting more people into the labor market, but the nystartsjobben specifically - which is a rights-based measure - contain many problems. It has been highlighted very clearly in the Swedish National Audit Office's report that lack of controls and requirements have made the nystartsjobben a subsidy with a high risk for unscrupulous actors and that they lead to a great deal of crime in the working life.
Madam Speaker! What concerns us is that the government seems to be ignoring the Swedish National Audit Office's warnings. Despite the criticism in the report, the government has chosen to leave the problems unsolved, which was also clearly evident from the response. They have weakened the important safeguards. I mentioned earlier that they are removing the trade union statements next year. That was one of the most effective methods for auditing the employers' conditions and preventing abuse.
Arbetsförmedlingen is receiving fewer resources for controls. They state that over 1 billion is being paid out incorrectly. More resources are also needed there to ensure that labor market measures are handled in a responsible manner. That is why I previously pointed out that we Social Democrats have several times taken the initiative and demanded stricter requirements on employers, clearer labor market policy assessments, and reintroduced support for trade union statements. It would be good if the Minister stated something about this.
The Minister did not answer the questions I asked regarding how the government intends to proceed with the National Audit Office's report and how it views labor market policy review, support for trade union statements, and requirements that employment must follow collective agreements. It would be good if the Minister could answer how the government intends to handle the nystartsjobb (new start jobs).
Sofia Amloh (S)
Madam Speaker! I also want to be careful to point out that labor market measures are extremely important for getting people into work. Just as the Minister touched upon, they are significant for people to be able to enter and establish themselves in the labor market. But the measure we are addressing today, the nystartsjobb, contributes palpably to welfare crime and organized crime that pumps the state - the Swedish people - of tax money.
I think that tax money should go to real measures where people get opportunities to establish themselves and the right conditions to do so on good foundations. But this support goes to companies that exploit the system, and yet more is not being done.
If the committee initiative that the opposition, the Social Democrats, proposed six months ago had been passed and one had chosen to support it, we would have saved a lot of tax revenue from this and been able to allocate them to real measures. Then we might have been able to enter a new year, 2025, with a changed system where it is not possible to cheat as it is today.
Why is the government or the council of state doing this? For me, it is quite incomprehensible that one allows this.
Arbetsmarknads- och integrationsministern Mats Persson (L)
Madam Speaker! Thank you to the interpellants for your commitment to this issue! I note that there is broad consensus in the Swedish Riksdag that we need to do more to tackle fraud and inaccuracies. Our welfare systems must not be exploited.
It is difficult to claim that the government is doing nothing. We are taking a number of measures to address the problems. We have the Swedish Payments Agency, restrictions on who one can hire – one may not hire family members – and one may not use the systems if one has recently issued warnings or dismissed employees. We also intend to expand the possibilities for Arbetsförmedlingen to carry out sharper controls at workplaces. The government is therefore taking a number of measures, even if not exactly the measures that the Socialdemokrater wish for, but a number of other measures that we believe are more effective and will have a greater effect.
Patrik Lundqvist (S)
Madam Speaker! It is true that these measures are not quite what we would like to see. One can talk about the Swedish Pensions Agency as much as one wants, but as long as this is a right, it doesn't matter! There, of course, incorrect payments and people who are not entitled to support are handled, but here one has that right regardless of what else one has in their baggage. It is therefore not a measure that applies to this area. Great for others, absolutely, but here it does not help.
It also doesn't help particularly much that one stops entrepreneurs from hiring relatives.
For this group of individuals, it also does not help that one is not entitled to these supports if one has cheated or dismissed people, because what do gang criminals who run companies for this purpose do when they, for example, no longer are entitled to these funds and the nystartsjobb ceases for an individual? Do they then dismiss them, or do they perhaps let that person resign themselves? Yes, they tell the person that they should terminate their employment on their own initiative. So one easily solves this problem. That is what I would believe, at least.
As has been said, it is very good that the government is doing a lot of things in other areas, but here it seems that nothing is being done at all. I believe it is because one is still living in some kind of naive notion that all entrepreneurs are good people and citizens in Sweden, simply because they are entrepreneurs. So that is not the case now, and Mats Persson has also touched upon this in his argumentation. But one needs to show it in action, even in this area.
I really hope that more initiatives will come forward in the future. We will not let this go, but it seems that the government is not particularly inclined to do anything today.
Arbetsmarknads- och integrationsministern Mats Persson (L)
Madam Speaker! The Government takes this issue with the utmost seriousness. We have a welfare society and a welfare state built on trust and our social contract, where those who get up in the morning, work hard and do their best should know that the support in the society's welfare system goes to those who need it most and that no benefit crime or fraud occurs in various ways.
We now see how, due to laxity from previous governments, a situation has been able to be built up within the pension system, the social insurance system, the labor market policy, and a number of areas where we see problems with benefit crime.
This government takes the problems seriously. That is why we are now taking a number of measures to address the problems and make it impossible to cheat in the systems. This should have been done a long time ago. It is a problem that we have inherited from previous governments. I regret that the Social Democrats, during eight years in power, did nothing about it. Now we are doing it, and this is a step in the completely right direction.
Source: The Swedish Parliament. The speeches come from the open data of the Riksdag, translated into English by AI, which may contain errors.