Ministry of Employment Sweden Focusing on the most vulnerable Modernization of social protection and supporting activation Maria Hemström Ministry of Employment.

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Ministry of Employment Sweden Focusing on the most vulnerable Modernization of social protection and supporting activation Maria Hemström Ministry of Employment Sweden

Ministry of Employment Sweden The largest Swedish trade union Magazine August 29, 2008 EMPLOYMENT NOW ALL TIME HIGH

Ministry of Employment Sweden EMPLOYED

Ministry of Employment Sweden EMPLOYED

Ministry of Employment Sweden EMPLOYED

Ministry of Employment Sweden EMPLOYED UNEMPLOYED

Ministry of Employment Sweden EMPLOYED UNEMPLOYED

Ministry of Employment Sweden EMPLOYED UNEMPLOYED ”the most vulnerable” INACTIVE BENEFIT RECEPIENTS

Ministry of Employment Sweden Consequences of the Swedish crises in the 1990’s (Q4, 16-64, %) Unemployment 1,5 8,3 Labor force participation84,5 77,7

Ministry of Employment Sweden Consequences of the Swedish crises in the 1990’s (Q4, 16-64, %) Unemployment 1,5 8,3 5,4 Labor force participation84,5 77,7 78,0

Ministry of Employment Sweden EMPLOYED UNEMPLOYED ”the most vulnerable” INACTIVE BENEFIT RECEPIENTS

Ministry of Employment Sweden EMPLOYED UNEMPLOYED ”the most vulnerable” INACTIVE BENEFIT RECEPIENTS

Ministry of Employment Sweden Challenges Poverty traps A compressed wage-structure Search-activity decreases with time spent in unemployment

Ministry of Employment Sweden Challenges Poverty traps Need to make work pay A compressed wage-structure Search-activity decreases with time spent in unemployment

Ministry of Employment Sweden Challenges Poverty traps Need to make work pay A compressed wage-structure Need to make it less expensive to employ Search-activity decreases with time spent in unemployment

Ministry of Employment Sweden Challenges Poverty traps Need to make work pay A compressed wage-structure Need to make it less expensive to employ Search-activity decreases with time spent in unemployment Need to support activation

Ministry of Employment Sweden Recent changes Changes in unemployment- and sickness-benefits New measures targeted at unemployed at the margin of the labour market

Ministry of Employment Sweden The UNEMPLOYMENT INSURANCE Benefit level (% of previous income) Time in unemployment (No of days) % 600 PREVIOUS SYSTEM

Ministry of Employment Sweden The UNEMPLOYMENT INSURANCE Benefit level (% of previous income) Time in unemployment (No of days) % 70 % 65 % PREVIOUS SYSTEM CURRENT SYSTEM

Ministry of Employment Sweden The UNEMPLOYMENT INSURANCE Benefit level (% of previous income) Time in unemployment (No of days) % 70 % 65 % The job & -development guarantee PREVIOUS SYSTEM CURRENT SYSTEM

Ministry of Employment Sweden The UNEMPLOYMENT INSURANCE Benefit level (% of previous income) Time in unemployment (No of days) % 70 % 65 % Phase 1 & 2 The job & -development guarantee PREVIOUS SYSTEM CURRENT SYSTEM

Ministry of Employment Sweden The UNEMPLOYMENT INSURANCE Benefit level (% of previous income) Time in unemployment (No of days) % 70 % 65 % Phase 1 & 2Phase 3 The job & -development guarantee PREVIOUS SYSTEM CURRENT SYSTEM

Ministry of Employment Sweden The UNEMPLOYMENT INSURANCE Benefit level (% of previous income) Time in unemployment (No of days) % 70 % 65 % Phase 1 & 2Phase 3 The job & -development guarantee PREVIOUS SYSTEM CURRENT SYSTEM New start jobs Step in jobs

Ministry of Employment Sweden The SICKNESS INSURANCE Benefit level (% of previous income) Time on sick leave (No of months) 80 % PREVIOUS SYSTEM

Ministry of Employment Sweden The SICKNESS INSURANCE Benefit level (% of previous income) Time on sick leave (No of months) 80 % PREVIOUS SYSTEM CURRENT SYSTEM

Ministry of Employment Sweden The SICKNESS INSURANCE Benefit level (% of previous income) Time on sick leave (No of months) 80 % PREVIOUS SYSTEM CURRENT SYSTEM 3 Is there anything else you can do at: your present employe r?

Ministry of Employment Sweden The SICKNESS INSURANCE Benefit level (% of previous income) Time on sick leave (No of months) 80 % PREVIOUS SYSTEM 12 CURRENT SYSTEM 6 3 Is there anything else you can do at: your present employe r? another employe r?

Ministry of Employment Sweden The SICKNESS INSURANCE Benefit level (% of previous income) Time on sick leave (No of months) 80 % PREVIOUS SYSTEM % CURRENT SYSTEM 6 3 Is there anything else you can do at: your present employe r? another employe r?

Ministry of Employment Sweden The SICKNESS INSURANCE Benefit level (% of previous income) Time on sick leave (No of months) 80 % PREVIOUS SYSTEM % CURRENT SYSTEM 6 3 Is there anything else you can do at: your present employe r? another employe r?

Ministry of Employment Sweden Conclusions The current crisis will be followed by a demographic challenge We need to create incentives and opportunities that will make people stay in and reenter to the labour market