Response to interpellations 2024/25:495 and 507 on high unemployment and regional skills shortages

Arbetsmarknads- och integrationsministern Mats Persson (L)

Madam Speaker! Linus Sköld has asked me what measures I intend to take to reduce unemployment and how I intend to act to solve the skills shortage in those regions that still have greater problems with skills shortages than with unemployment. Serkan Köse has asked me what I intend to do about Sweden's high unemployment in comparison with the eurozone, and what measures the government intends to take to reduce unemployment as well as improve the matching between job seekers and vacant jobs.

The most important measure to push back unemployment has been to prioritize the fight against inflation. The Government wants to support the economy's recovery and prioritizes reforms within three areas above all: It is about continuing to strengthen households' purchasing power, reforms for increased growth, and re-establishing the work line so that more people get into work. The single most important effort to establish oneself on the labor market in the long term is education.

In the 2025 budget bill, the government makes investments that involve reduced taxes on labor and extensive investments in education. The government has also increased the resources of Arbetsförmedlingen to improve matching in the labor market and provide better support to job seekers.

The government has a good basis for meeting unemployment and constantly follows and analyzes the developments in the labor market in order to be able to conduct an effective labor market policy whose measures shall contribute to a well-functioning labor market.

The speech at riksdagen.se, in Swedish (opens in a new tab)

Linus Sköld (S)

Madam Speaker! Thank you, Minister, for the answer!

I thought the answer deserved to be simplified somewhat. What Mats Persson is answering is that the government is to lower taxes most for those who earn the most and make the poor poorer. After that, the government is to sit on its hands and hope for the best. That is, in any case, how it looks when one looks at what policy is actually being pursued.

Mats Persson says in his response that the single most important contribution to establishing oneself on the labor market in the long term is education. On that basic thesis, we are actually in agreement.

It is fascinating that Mats Persson represents a government that ensures that the single most important intervention becomes available to fewer and fewer people at a time when more and more people need it.

Let me explain. Unemployment is at its highest in decades. At the same time, the government is cutting the number of places in the forms of education: municipal adult education, folk high school, university college, academy, and labor market training. In almost all publicly funded forms of education for adults, the number of places will therefore be fewer this year compared to last year due to the government's economic policy.

I think that is a poor way to show that education is the single most important measure.

This also follows a pattern. The pattern is as follows:

The government budgets for large upcoming reductions of educational places in years two and three in its autumn budgets.

Step two is that the government communicates about nominal reductions as large investments because they are not cutting down quite as much as they planned to do the year before.

Step three is what we saw last week in an announcement from the government. Then one adds a little more, but not enough to reach a nominal increase compared to last year. In the year-end budget, one adds a little bit. Then one communicates it as an investment again, even though it is actually a nominal decrease compared to the previous year.

This is not a way to show that education is the single most important measure for establishing oneself on the labor market in the long term.

I asked a question in my interpellation that I did not receive an affirmative answer to from Mats Persson. I therefore intend to repeat that very one.

Unemployment is, as I said, among the highest in decades. But we have regional conditions that mean there are regions where a skills shortage is a bigger problem than unemployment. In my home region of Norrbotten, unemployment is nearly half of the national average. And in some individual municipalities, it is as low as 2 percent. This opens up for the Minister for Employment to have some measure to, so to speak, solve the skills shortage and unemployment in one fell swoop. This actually gave the Minister for Employment no answer here.

How does he intend to act to solve the problem of skills shortages in those regions that still have greater problems with skills shortages than with unemployment?

The speech at riksdagen.se, in Swedish (opens in a new tab)

Serkan Köse (S)

Madam Speaker! Thank you, Minister, for the answer!

I have asked a question, Madam Speaker. My question was: What does the government intend to do about the fact that Sweden today has higher unemployment than the eurozone? It is a situation that is historically unique but also alarming. The answer I have received is, unfortunately, as predictable as it is insufficient.

The Minister states in his response that combating inflation has been the most important, that he wants to strengthen households' purchasing power, that he wants to introduce growth reforms, that he wants to re-establish the work principle and, last but not least, that education is the long-term path in terms of employment.

All this sounds very reasonable, but reality speaks a completely different language.

Madam Speaker! Unemployment in Sweden is the highest in over ten years, if we set aside the pandemic. The growth in our country is almost the worst in Europe. Sweden, our country, is only becoming poorer. The Swedish people are only becoming poorer. Today we have over half a million people who are unemployed, when one counts both those who are openly unemployed and those who are in labor market policy programs. 145,000 of them are long-term unemployed. At the same time, unemployment in the eurozone is at 6.2 percent. In Sweden, it is at 8.9 percent. It is therefore a record low for Sweden.

At the same time, we have a youth unemployment rate of just over 25 percent, which means that every fourth young person in our country is unemployed today.

Time and again, even in the response, we hear that the work line is central for the government. In that case, I can ask the question: Why is the unemployment benefit then being worsened? Why is faster tapering being reintroduced and the compensation lowered? This does not create incentives, but rather it creates anxiety and economic insecurity and reduced mobility on the Swedish labor market. It leads to enormous consequences now that we have the high unemployment.

The Minister points out in his response that the key to jobs is education. I completely share that view. As my colleague Linus explained, resources for adult education and komvux have been reduced. And the investments that exist in the budget for 2025 are far from sufficient to restore previous cuts, let alone to meet today's challenges. We have half a million people who are unemployed in Sweden and who need measures.

There is also a discussion about increased resources to, among other things, Arbetsförmedlingen. We saw the government's latest move: 60 million kronor, primarily for control measures. It is not an offensive investment. This means no extra resources for active labor market policy. This shows that the government does not see the crisis that exists today on the Swedish labor market.

I will again raise the discussion about the unemployment benefit. According to Byggnadsarbetaren, the payments have increased by 38 percent so far this year. It is a clear sign that people are not only becoming unemployed but also getting stuck in these systems a bit longer. At the same time, as I mentioned, the government is worsening the security. After 100 days, it is scaled down. This is a double blow to people.

Let me also state, Madam Speaker, that it is not only we from the opposition who are critical. The entire industry is critical of the government and is now sounding the alarm. Within construction, trade, restaurant, and transport, one sees with increasing concern that the government is doing nothing, not least in light of the rising unemployment. They demand that the government, the State Council, steps forward and takes this responsibility.

I have only one more question for the Minister: When does the Minister intend to realize that Sweden has a high unemployment rate, and when does the Minister intend to act to address it?

The speech at riksdagen.se, in Swedish (opens in a new tab)

Arbetsmarknads- och integrationsministern Mats Persson (L)

Madam Speaker! Thanks to the interpellants, Serkan Köse and Linus Sköld, for the questions!

Let me start by zooming out and describing a bit where Sweden finds itself right now. Despite a situation with a prolonged international recession, which is particularly clearly noticeable in our country, we have among the highest employment rates in Europe. We have the highest labor force participation in Europe. We have an employment rate of over 82 percent for those between 20 and 64. I mention that figure because the target a long time ago, when the Social Democrats had full employment as a goal, was 80 percent. We hit that, so to speak, with flying colors.

However, the Swedish labor market and society have problems with a lack of matching. Even in a boom, we had a situation where we had a lack of competence. It was difficult to find skilled people who could take the vacant jobs that existed. This need has not diminished now that we have entered a recession.

To that, we have, for obvious reasons, anxious households who are tightening their belts. They have felt the effects of inflation and are currently acting based on great uncertainty in our global environment and are therefore holding onto their money.

Against this background, we announced from the government last week that we are now ensuring improvements for households by very clearly improving the rotavdrag (deduction for home improvements). Those who today want and have the possibility – and who may have thought about it since earlier – to renovate the bathroom, renovate the summer cottage, or carry out a renovation at home have strong reasons to do so just this year. If one ensures that the invoice is paid from May 12, one can take advantage of the increased rotavdrag, which is now being implemented.

To this, further investments are being made in more educational places precisely because we know that vocational training that leads to real jobs strengthens the individual and makes our society function better.

The speech at riksdagen.se, in Swedish (opens in a new tab)

Linus Sköld (S)

Madam Speaker! I find the satisfaction that the Minister for Employment shows in the rostrum to be astonishing. He says that people have felt the effects of inflation. Yes, prices have not become lower, and in particular, inflation is increasing again. And now, once again, interest rates are turning upwards after a short pause.

Regarding the state of the Swedish economy, there are some signs in the current time. Records were broken in the number of bankruptcies last year. Records were broken in the amount of debt at the Enforcement Authority, and that tells us which households are suffering the most in this situation. It is those who had the smallest margins before coffee started costing 75 kronor. It is those who now have debts at the Enforcement Authority. We have the highest unemployment we have had in any decade.

The Minister for Employment is quite satisfied. He wants to zoom out and compare the labor force participation with the rest of Europe. I think it is shameful to claim that investments are being made in vocational training when, nominally, it is such that there will be fewer this year than there were last year.

If my result as Minister for Employment were that unemployment increased by more than half a percentage point from February last year to February this year, while participation in labor market policy measures and programs decreased, I would be very dissatisfied. I would be seriously concerned about it if I were the one responsible for that development. But Mats Persson stands here in the speaker's chair and is satisfied. He thinks it is going quite well and zooms out and checks who has the highest employment.

Fighting inflation by lowering taxes for the wealthy does not work. The people who have the very highest incomes receive the very largest tax cuts. It is about a targeted tax cut of 6 billion to those who earn 65,000 or more per month. That money will end up in tax-exempt ISKs in this country. The debts at the Enforcement Authority increased by 52 million per day last year. Those who earn 65,000 a month are not overrepresented in that group. It was not they who needed a reinforcement of household purchasing power.

Mats Persson represents a government that wants to fix this by lowering taxes for the rich. The renovation deduction is just another example. It assumes that one can afford to own their house and that one can afford to renovate. It is just another example of how he wants to lower taxes for the rich and make life harder for the poor.

Mats Persson thinks that inflation will subside and that unemployment will disappear then. But everything indicates that is not how it works. If that were how it worked, the government's policy would have worked. Now unemployment is still increasing. How can that be?

The speech at riksdagen.se, in Swedish (opens in a new tab)

Serkan Köse (S)

Madam Speaker! Thank you, Minister, for the answer! It is indeed fantastic that Sweden has a high employment rate? Sweden has a good labor force participation, and that we completely agree on. Sweden has had that for a very long time, even during the Social Democratic government's time. We have had a high employment and a high labor force participation.

It is important to continue to demand that people be available, make themselves employable, and take the jobs that hopefully will come soon. We agree that everyone who can work shall work. Sweden is fantastically unique in its way by people registering themselves and being ready to take a job. On that, we are in complete agreement.

We also agree that one must have a goal with politics. We Social Democrats had a goal. I wish that the government could also have a goal or account for a goal. What does the government want with the labor market policy? How high should the unemployment be? What does one want to achieve during this mandate period?

Madam Speaker! New figures from SCB show that the proportion of Swedes living on benefits, insurance, and subsidies increased significantly last year. According to what Tidningen Näringslivet writes, they also do not believe in the government's labor market policy. In a debate article, representatives for Almega, education companies, and competence companies actually demanded that the minister roll up their sleeves and deliver a broad, active labor market policy. They wrote that Sweden cannot wait. I share that opinion. Sweden cannot wait. Therefore, it is very important that the government comes back with concrete proposals for reforms and measures.

I mentioned 60 million. I believe that the Minister and I agree that 60 million – which is only to be used for monitoring of interventions – to Arbetsförmedlingen in this situation will not go far, parallel to the fact that the program interventions must increase.

Let me just state something about the discussion on educational measures. According to Skolverket, the number of students at komvux has decreased by over 10 percent since 2022. These are alarming figures that must be taken seriously. According to Arbetsförmedlingen's budget basis for 2025 and 2027, the government has cut back on labor market training, which hinders matching and makes it impossible for the agency to fulfill its mandate.

We have just noted that there is a mismatch in the Swedish labor market today. There are vacant jobs, but there are also many people who cannot take those jobs. There, one needs to continue to invest.

I share the view that we need to invest in education. The Minister and I agree on that. But when we Social Democrats look at how much money is de facto allocated and how many places there are, we become concerned. That is what we are highlighting here; we are concerned about the development we see today.

There is also long-term unemployment. That is something we also agree on. We must do everything we can to tackle it. Very many young people have difficulty entering the labor market. It is over 25 percent unemployment in that group. Every fourth young person in Sweden today has no work to go to. People in the suburbs and rural areas, older workers and people with disabilities have been left behind.

This is not my analysis, but it is Tidningen Näringslivet that writes that unemployment is historically high in all groups and that they do not believe in any turnaround.

My question is: Can the Minister give us some hope on how to reverse the development? Everyone watching this debate, all those groups who are worried, many who are unemployed or about to become unemployed – what is the Minister's message to them? These people are waiting for an answer from the government.

The speech at riksdagen.se, in Swedish (opens in a new tab)

Arbetsmarknads- och integrationsministern Mats Persson (L)

Madam Speaker! Many thanks to Serkan Köse for the constructive tone in the debate! I agree that we should be proud of how things are in Sweden and think there is broad political agreement that we have a very high employment rate and a high labor force participation. We have also had that during the recent Social Democratic governments. It is something that Swedish politics has handled in a very good way, actually ever since the financial crisis. What we need to get better at is ensuring that unemployment goes down and that individuals are matched better to the available jobs that exist.

During the boom, there were many vacant jobs, and there are even today. Back then, it was largely about education. Serkan Köse asked a very justified question about how it is that educational places remain empty, for example within komvux. It is a huge problem. Here in the Riksdag, one must nevertheless admit that we are fairly in agreement that we believe in yrkesvux and komvux that are vocationally oriented. We invest money in this – but in broad terms, half of the money is paid back by the municipalities. That is an explanation and something that the government is now rectifying.

From the government's side, we are now providing better planning conditions by giving the municipalities the opportunity to plan not just one year ahead but several years ahead. That, together with the changed legislation that is coming, means that Arbetsförmedlingen and the municipalities can cooperate and exchange information with each other to a greater extent. Arbetsförmedlingen can then find out if the individual is enrolled in komvux and vice versa, which also benefits our endeavor that more people should be able to attend some form of education.

It is not a lack of money, ambitions or will, but it is a lack of ability. Our systems are a bit too lax today and do not function, which means that people do not get the opportunities that they could otherwise get.

I share Serkan Köse's commitment to youth unemployment and young people. One can discuss whether youth unemployment is 25 or 10 percent; it depends on how one measures it. But it doesn't matter, because even if Sweden fares well in an international comparison of the group of young people who are doing nothing – around 7 percent in Sweden do not have jobs, are not in education, and are not in internship – I still think that level is too high. We need to do more so that school works better, and we must have measures for young people.

In the budget amendment, the government has announced a special initiative for young people. This concerns both summer jobs and jobs for young people, an initiative that targets a larger group, not least young people under 20 who may not have complete high school grades. They can get work and thus a reference, and they earn money and get a foot in the door on the labor market. In that way, they will most likely strengthen their situation on the labor market.

Finally, Serkan Köse asked me what measures we are taking and what can be done in this situation. It is not only in Sweden that we are struggling with a prolonged recession and an American president who talks a lot with the media and who creates uncertainty with threats of tariffs, but it is something that characterizes all of Europe. But what we can do is to ensure that households gain a sense of confidence in the future by giving them strong economic drivers to make some economic decisions just this year.

One such example is that, through the rot deduction, we can get people who were already planning to renovate their bathroom to do so in 2025 specifically, and not some years later as they had intended. In that way, we can get the construction industry moving and get the economic wheels turning a bit better.

The speech at riksdagen.se, in Swedish (opens in a new tab)

Linus Sköld (S)

Madam Speaker! The Swedish economy shows strong signs that measures are needed, something that the government abstains from. There are record numbers of bankruptcies. There is a record level of debt at the Enforcement Authority. We have fewer educational places, and fewer participate in labor market policy programs. At the same time, we see the highest unemployment in at least a decade. So far this year, as many have been laid off as during the entire of last year. It does not seem to be getting better.

In my interpellation, I asked a question that has still not received any answer. It concerned the relocation of the workforce. There are regions in the country that struggle with a very low unemployment. It does not even correspond to transitional unemployment but stands at only a couple of percent. It would therefore be possible for the government to consider measures to in one stroke reduce unemployment and meet the need for competence in the regions in question. I asked the minister questions about this, but he has not yet given any answer.

Last week, I heard a representative for one of the government parties speak in positive terms about a relocation grant. Does the government have a plan to introduce something similar, that is, financial incentives to move to where the jobs are? It would be interesting to know that. Perhaps the minister can either confirm or deny that statement here?

The speech at riksdagen.se, in Swedish (opens in a new tab)

Serkan Köse (S)

Madam Speaker! I thank the Minister for the answer.

We look forward to a continued dialogue and discussion on these important issues. Let me also say initially that we welcome the bill on the exchange of information between Arbetsförmedlingen and municipalities and we stand behind it. It is important that there is a clear exchange of information between Arbetsförmedlingen and the municipalities. It is a step in the right direction. We demand that this cooperation shall be structured, and that also applies to the exchange of information.

What I want to convey to the Minister from this discussion is that resources must also accompany this so that the whole thing does not just become an administrative measure that does not lead to improvements for the job seekers. The ambition is, after all, to improve the conditions for the job seekers and that the mutual flow of information between the municipalities and Arbetsförmedlingen shall function so that the measures required can be implemented so that people receive the help and the support they need to become employable.

Again: We agree that Sweden is a fantastic country. We have a high employment rate and a high labor force participation. Very many people in our country want a job and do everything they can to make themselves employable and take the jobs that are available. But we also have groups that are far from this. There, we need to implement measures.

The discussion is about exactly that. We must strengthen the labor market policy measures and actions so that they reach the groups that need support the most. It is this that we must continue to discuss with the Minister. Possibly we make the same analysis, but we land on different solutions. It is perhaps here that the political difference lies. We make the same analysis and see the problems, but we have different solutions than the Minister.

The accompanying message to the Minister is that these issues must be handled carefully, and we are ready to discuss them with him.

The speech at riksdagen.se, in Swedish (opens in a new tab)

Arbetsmarknads- och integrationsministern Mats Persson (L)

Madam Speaker! I shall briefly answer some questions that have been asked by the members. These concern, among other things, higher compensation for interview travel. Those who need to conduct an interview in a different part of the country than where they live to apply for a job can, following a proposal from the government, now receive higher compensation. It is an initiative we have taken to favor the conditions for skills supply in northern Sweden. We are also carrying out various educational initiatives to address the skills shortage that exists.

I would like to take this opportunity to thank the interpellants for the debate. I thank in particular Serkan Köse for good cooperation and for a good tone in the debate as well as constructive input, which I as a minister naturally take with me.

I also note, in conclusion, the rhetoric Linus Sköld uses when he speaks about the repair deduction. The member argues that it is something that only high-income earners and the wealthy can take advantage of. That is a staggering statement. The Swedish middle class does use the repair deduction and receive greater economic incentives through it to make investments in their homes. The Social Democrats have on several occasions used an enhanced repair deduction as a cyclical measure. To then claim that this is only something for high-income earners is staggering.

The interpellations debate was hereby concluded.

The speech at riksdagen.se, in Swedish (opens in a new tab)