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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
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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.

Apr 01, 2015

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

Ministry of Employment Sweden

Focusing on the most vulnerable

Modernization of social protection

and supporting activation

Maria HemströmMinistry of Employment

Sweden

Page 2: Ministry of Employment Sweden Focusing on the most vulnerable Modernization of social protection and supporting activation Maria Hemström Ministry of Employment.

Ministry of Employment Sweden

The largest Swedish trade union Magazine

August 29, 2008

EMPLOYMENT NOW

ALL TIME HIGH

Page 3: Ministry of Employment Sweden Focusing on the most vulnerable Modernization of social protection and supporting activation Maria Hemström Ministry of Employment.

Ministry of Employment Sweden

EMPLOYED

Page 4: Ministry of Employment Sweden Focusing on the most vulnerable Modernization of social protection and supporting activation Maria Hemström Ministry of Employment.

Ministry of Employment Sweden

EMPLOYED

Page 5: Ministry of Employment Sweden Focusing on the most vulnerable Modernization of social protection and supporting activation Maria Hemström Ministry of Employment.

Ministry of Employment Sweden

EMPLOYED

Page 6: Ministry of Employment Sweden Focusing on the most vulnerable Modernization of social protection and supporting activation Maria Hemström Ministry of Employment.

Ministry of Employment Sweden

EMPLOYED

UNEMPLOYED

Page 7: Ministry of Employment Sweden Focusing on the most vulnerable Modernization of social protection and supporting activation Maria Hemström Ministry of Employment.

Ministry of Employment Sweden

EMPLOYED

UNEMPLOYED

Page 8: Ministry of Employment Sweden Focusing on the most vulnerable Modernization of social protection and supporting activation Maria Hemström Ministry of Employment.

Ministry of Employment Sweden

EMPLOYED

UNEMPLOYED

”the most vulnerable”

INACTIVE

BENEFIT RECEPIENTS

Page 9: Ministry of Employment Sweden Focusing on the most vulnerable Modernization of social protection and supporting activation Maria Hemström Ministry of Employment.

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 participation 84,5 77,7

Page 10: Ministry of Employment Sweden Focusing on the most vulnerable Modernization of social protection and supporting activation Maria Hemström Ministry of Employment.

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 participation 84,5 77,7 78,0

Page 11: Ministry of Employment Sweden Focusing on the most vulnerable Modernization of social protection and supporting activation Maria Hemström Ministry of Employment.

Ministry of Employment Sweden

EMPLOYED

UNEMPLOYED

”the most vulnerable”

INACTIVE

BENEFIT RECEPIENTS

Page 12: Ministry of Employment Sweden Focusing on the most vulnerable Modernization of social protection and supporting activation Maria Hemström Ministry of Employment.

Ministry of Employment Sweden

EMPLOYED

UNEMPLOYED

”the most vulnerable”

INACTIVE

BENEFIT RECEPIENTS

Page 13: Ministry of Employment Sweden Focusing on the most vulnerable Modernization of social protection and supporting activation Maria Hemström Ministry of Employment.

Ministry of Employment Sweden

Challenges

Poverty traps

A compressed wage-structure

Search-activity decreases with time

spent in unemployment

Page 14: Ministry of Employment Sweden Focusing on the most vulnerable Modernization of social protection and supporting activation Maria Hemström Ministry of Employment.

Ministry of Employment Sweden

Challenges

Poverty traps

Need to make work pay

A compressed wage-structure

Search-activity decreases with time

spent in unemployment

Page 15: Ministry of Employment Sweden Focusing on the most vulnerable Modernization of social protection and supporting activation Maria Hemström Ministry of Employment.

Ministry of Employment Sweden

Challenges

Poverty traps

Need to make work pay

A compressed wage-structureNeed to make it less expensive to

employ

Search-activity decreases with time

spent in unemployment

Page 16: Ministry of Employment Sweden Focusing on the most vulnerable Modernization of social protection and supporting activation Maria Hemström Ministry of Employment.

Ministry of Employment Sweden

Challenges

Poverty traps

Need to make work pay

A compressed wage-structureNeed to make it less expensive to

employ

Search-activity decreases with time

spent in unemployment

Need to support activation

Page 17: Ministry of Employment Sweden Focusing on the most vulnerable Modernization of social protection and supporting activation Maria Hemström Ministry of Employment.

Ministry of Employment Sweden

Recent changes

Changes in unemployment- and sickness-benefits

New measures targeted at unemployed at the margin of

the labour market

Page 18: Ministry of Employment Sweden Focusing on the most vulnerable Modernization of social protection and supporting activation Maria Hemström Ministry of Employment.

Ministry of Employment Sweden

The UNEMPLOYMENT INSURANCE

Benefit level (% of previous income)

Time in unemployment(No of days)

300

80 %

600

PREVIOUS SYSTEM

Page 19: Ministry of Employment Sweden Focusing on the most vulnerable Modernization of social protection and supporting activation Maria Hemström Ministry of Employment.

Ministry of Employment Sweden

The UNEMPLOYMENT INSURANCE

Benefit level (% of previous income)

Time in unemployment(No of days)

200 300

80 %

70 %

65 %

PREVIOUS SYSTEM

CURRENT SYSTEM

Page 20: Ministry of Employment Sweden Focusing on the most vulnerable Modernization of social protection and supporting activation Maria Hemström Ministry of Employment.

Ministry of Employment Sweden

The UNEMPLOYMENT INSURANCE

Benefit level (% of previous income)

Time in unemployment(No of days)

200 300

80 %

70 %

65 %

The job & -development guarantee

PREVIOUS SYSTEM

CURRENT SYSTEM

Page 21: Ministry of Employment Sweden Focusing on the most vulnerable Modernization of social protection and supporting activation Maria Hemström Ministry of Employment.

Ministry of Employment Sweden

The UNEMPLOYMENT INSURANCE

Benefit level (% of previous income)

Time in unemployment(No of days)

200 750300

80 %

70 %

65 %

Phase 1 & 2

The job & -development guarantee

PREVIOUS SYSTEM

CURRENT SYSTEM

Page 22: Ministry of Employment Sweden Focusing on the most vulnerable Modernization of social protection and supporting activation Maria Hemström Ministry of Employment.

Ministry of Employment Sweden

The UNEMPLOYMENT INSURANCE

Benefit level (% of previous income)

Time in unemployment(No of days)

200 750300

80 %

70 %

65 %

Phase 1 & 2

Phase 3

The job & -development guarantee

PREVIOUS SYSTEM

CURRENT SYSTEM

Page 23: Ministry of Employment Sweden Focusing on the most vulnerable Modernization of social protection and supporting activation Maria Hemström Ministry of Employment.

Ministry of Employment Sweden

The UNEMPLOYMENT INSURANCE

Benefit level (% of previous income)

Time in unemployment(No of days)

200 750300

80 %

70 %

65 %

Phase 1 & 2

Phase 3

The job & -development guarantee

PREVIOUS SYSTEM

CURRENT SYSTEM

New start jobsStep in jobs

Page 24: Ministry of Employment Sweden Focusing on the most vulnerable Modernization of social protection and supporting activation Maria Hemström Ministry of Employment.

Ministry of Employment Sweden

The SICKNESS INSURANCEBenefit level (% of previous income)

Time on sick leave(No of months)

80 %PREVIOUS SYSTEM

Page 25: Ministry of Employment Sweden Focusing on the most vulnerable Modernization of social protection and supporting activation Maria Hemström Ministry of Employment.

Ministry of Employment Sweden

The SICKNESS INSURANCEBenefit level (% of previous income)

Time on sick leave(No of months)

80 %PREVIOUS SYSTEM

CURRENT SYSTEM

Page 26: Ministry of Employment Sweden Focusing on the most vulnerable Modernization of social protection and supporting activation Maria Hemström Ministry of Employment.

Ministry of Employment Sweden

The SICKNESS INSURANCEBenefit 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 employer?

Page 27: Ministry of Employment Sweden Focusing on the most vulnerable Modernization of social protection and supporting activation Maria Hemström Ministry of Employment.

Ministry of Employment Sweden

The SICKNESS INSURANCEBenefit 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 employer?

another employer?

Page 28: Ministry of Employment Sweden Focusing on the most vulnerable Modernization of social protection and supporting activation Maria Hemström Ministry of Employment.

Ministry of Employment Sweden

The SICKNESS INSURANCEBenefit 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 employer?

another employer?

Page 29: Ministry of Employment Sweden Focusing on the most vulnerable Modernization of social protection and supporting activation Maria Hemström Ministry of Employment.

Ministry of Employment Sweden

The SICKNESS INSURANCEBenefit 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 employer?

another employer?

Page 30: Ministry of Employment Sweden Focusing on the most vulnerable Modernization of social protection and supporting activation Maria Hemström Ministry of Employment.

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