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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.

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Presentation on theme: "Ministry of Employment Sweden Focusing on the most vulnerable Modernization of social protection and supporting activation Maria Hemström Ministry of Employment."— Presentation transcript:

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

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

3 Ministry of Employment Sweden EMPLOYED

4 Ministry of Employment Sweden EMPLOYED

5 Ministry of Employment Sweden EMPLOYED

6 Ministry of Employment Sweden EMPLOYED UNEMPLOYED

7 Ministry of Employment Sweden EMPLOYED UNEMPLOYED

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

9 Ministry of Employment Sweden Consequences of the Swedish crises in the 1990’s (Q4, 16-64, %) 1990 1993 Unemployment 1,5 8,3 Labor force participation84,5 77,7

10 Ministry of Employment Sweden Consequences of the Swedish crises in the 1990’s (Q4, 16-64, %) 1990 1993 2005 Unemployment 1,5 8,3 5,4 Labor force participation84,5 77,7 78,0

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

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

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

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

15 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

16 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

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

18 Ministry of Employment Sweden The UNEMPLOYMENT INSURANCE Benefit level (% of previous income) Time in unemployment (No of days) 300 80 % 600 PREVIOUS SYSTEM

19 Ministry of Employment Sweden The UNEMPLOYMENT INSURANCE Benefit level (% of previous income) Time in unemployment (No of days) 200300 80 % 70 % 65 % PREVIOUS SYSTEM CURRENT SYSTEM

20 Ministry of Employment Sweden The UNEMPLOYMENT INSURANCE Benefit level (% of previous income) Time in unemployment (No of days) 200300 80 % 70 % 65 % The job & -development guarantee PREVIOUS SYSTEM CURRENT SYSTEM

21 Ministry of Employment Sweden The UNEMPLOYMENT INSURANCE Benefit level (% of previous income) Time in unemployment (No of days) 200750300 80 % 70 % 65 % Phase 1 & 2 The job & -development guarantee PREVIOUS SYSTEM CURRENT SYSTEM

22 Ministry of Employment Sweden The UNEMPLOYMENT INSURANCE Benefit level (% of previous income) Time in unemployment (No of days) 200750300 80 % 70 % 65 % Phase 1 & 2Phase 3 The job & -development guarantee PREVIOUS SYSTEM CURRENT SYSTEM

23 Ministry of Employment Sweden The UNEMPLOYMENT INSURANCE Benefit level (% of previous income) Time in unemployment (No of days) 200750300 80 % 70 % 65 % Phase 1 & 2Phase 3 The job & -development guarantee PREVIOUS SYSTEM CURRENT SYSTEM New start jobs Step in jobs

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

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

26 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?

27 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?

28 Ministry of Employment Sweden The SICKNESS INSURANCE Benefit level (% of previous income) Time on sick leave (No of months) 80 % PREVIOUS SYSTEM 12 75 % CURRENT SYSTEM 6 3 Is there anything else you can do at: your present employe r? another employe r?

29 Ministry of Employment Sweden The SICKNESS INSURANCE Benefit level (% of previous income) Time on sick leave (No of months) 80 % PREVIOUS SYSTEM 12 36 75 % CURRENT SYSTEM 6 3 Is there anything else you can do at: your present employe r? another employe r?

30 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

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