Peer Review on 'Integration of Refugees into the Labour Market'

Written by Pernilla Andersson Joona

September, 2017

Peer Review on ‘Integration of Refugees into the Labour

Market’ Berlin (Germany), 11-12 October 2017

Labour market integration of newly arrived immigrants in Sweden: Past experiences and

future challenges

Peer Country Comments Paper – Sweden

DG Employment, Social Affairs and Inclusion

EUROPEAN COMMISSION

Directorate-General for Employment, Social Affairs and Inclusion

Unit C3

Contact: Maria Ilies

E-mail: [email protected]

Website: http://ec.europa.eu/social/home.jsp

European Commission

B-1049 Brussels

EUROPEAN COMMISSION

Directorate-General for Employment, Social Affairs and Inclusion

Peer Review on “Integration of Refugees into the Labour Market”

Germany, 11-12 October 2017

September, 2017

Peer Review on ‘Integration of Refugees into the Labour

Market’ DG Employment, Social Affairs and Inclusion

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Peer Review on “Integration of Refugees into the Labour Market” - Peer Country

Comments Paper

Table of Contents

1 Situation in the peer country relative to the host country .................................. 1

1.1 Migration flows .................................................................................... 1 1.2 The Swedish Introduction programs........................................................ 3 1.3 Main challenges to the labour market integration of newly arrived immigrants

3

2 Assessment of the policy measure .................................................................. 4

2.1 Asylum system .................................................................................... 4 2.2 Early interventions ............................................................................... 4 2.3 Rights and responsibility approach ......................................................... 5 2.4 Main stakeholders in labour market integration policies ............................. 6 2.5 Targeted labour markets support measures ............................................. 6 2.6 Targeted support for the self-employed ................................................... 8

3 Assessment of the success factors and transferability ....................................... 9

3.1 Implementation of rights and responsibility approach ............................... 9 3.2 General and targeted interventions ......................................................... 9 3.3 Early interventions ..............................................................................10 3.4 Measures to improve qualifications of low skilled immigrants ....................11 3.5 Success factors and transferability ........................................................11

4 Questions to the host country in the Peer Review ............................................13 5 References .................................................................................................14 Annex 1 Summary table ....................................................................................16 Annex 2 Example of relevant practice..................................................................17

Peer Review on 'Integration of Refugees into the Labour Market” - Peer Country

Comments Paper

September, 2017 1

1 Situation in the peer country relative to the host country

1.1 Migration flows

Similar to Germany, Sweden also received a large number of asylum seekers during

the fall 2015. After the Swedish Government introduced temporary border controls in

November 2015 the number decreased and during 2016 and up until August 2017, the

number of asylum seekers have been similar to the number that arrived prior to

August 2015 (see Figure 1). As in most other European countries that has received a

large number of asylum seekers most mainly come from Syria, Eritrea, Afghanistan,

Somalia and Iraq (migrationsverket.se). In 2016, 60 percent of asylum seekers were

men and 40 percent were women. The gender division among asylum seekers appears

to be similar in Sweden and Germany.

Figure 1. Total number of asylum seekers to Sweden 2013-2017.

Source: Swedish Board of Migration

The total cost for the introduction programs was in 2015, EUR 713 million. During

2017 this amount had increased to EUR 754 million. This includes wage costs for the

staff at the PES, the cost for different measures and benefits to participants in the

introduction programs (Arbetsförmedlingen 2016an the budget presented on

September 20th 2017, the Government proposes a total of EUR 1,6 billion to cover all

costs related to international migration 2018 (Expenditure Area 8). This includes for

example expenses for The Board of Migration and the settlement of asylum seekers

(Regeringen 2017). The Government further proposes to assign in total EUR 2,5 billion

for introduction measures for newly arrived, compensation to the municipalities and

benefits for newly arrived (Regeringen 2017). Although it is difficult to compare

expenses across countries, funding for integration courses in Germany in 2017 was

EUR 610 which could be compared with EUR 754 for the Swedish introduction

programs.


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September, 2017 2

In Table 1 we present the number of individuals that have received a residence permit

for different reasons among tied movers and asylum seekers in 2015 and 2016. Since

the asylum process sometimes can be long the high number of granted permits in

2016 is a result of the large inflow of asylum seekers in 2015. The largest group are

those who are in need of protection. The group labelled “refugees” was in 2016

relatively small in comparison to those who received subsidiary protection.

Table 1. Granted residence permits 2015 and 2016 to tied movers and asylum seekers

2015 2016

Ties 16 251 15 148

Asylum seekers (total) 36 645 71 571

Out of which:

Subsidiary protection 18 461 48 355

Refugees (convention) 13 552 17 913

Quota refugees 1 880 1 889

Part distressing circumstances 1 588 2 112

Other 1 164 1 292

Source: The Swedish Board of Migration

Box 1: Definition of target groups

Asylum seeker: Someone who are seeking asylum in Sweden but has not yet

received a decision.

Individuals covered by the Introduction Act (categories since November

24th 2015)

Tied movers: Someone who is next-of kin to someone who previously have been

granted asylum for protective, humanitarian or subsidiary reasons. Earlier tied

movers that came within two years of a family member were eligible to participate

in introduction programs. Later this time limit was extended to six years.

Refugee (convention): Someone who has been granted asylum for protective

reasons These are individuals who have been forced to escaped due to race,

nationality, religious or political beliefs, sexual orientation, or if they belong to a

certain social group.

Subsidiary protection: This category includes, for example, civilians that are at

risk of being injured in an armed conflict.

Quota refugees: Individual transferred to Sweden via a quota decided by the

Swedish government. They are granted a permanent residence permit before

coming to Sweden.


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September, 2017 3

1.2 The Swedish Introduction programs

In 2010 Sweden implemented a reform of its introduction programmes to streamline

the substantial regional variations in the programmes. Before the reform, these were

largely organised by municipalities and there was no focus on labour market activities.

The state lead Public Employment Service (PES) took over the responsibility and the

focus on labour market related activities was strengthened. After the reform all newly

arrived immigrants covered by the Introduction Act (see definitions in Box 1) were

required to register at the PES as soon as they have received their residence permit.

At the same time, they were enrolled in the introduction program. Participants should

have an introduction talk with a caseworker at the PES where they agree on an

individualised introduction plan that should include different activities for participants

throughout enrolment. These are: language training and courses in civic orientation

organised by the municipalities as well as labour market related activities at the PES.

This includes different types of vocational labour market training programmes (AMU),

skills assessment, validation of foreign credentials and work practice. Participation in

the program could last for up to 24 months with a possibility of an interruption for up

to eight months. When participating in the program participants are eligible of

receiving introduction benefit. Newly arrived between 20 and 65 years of age are

eligible to participate in the program. Among those who participated in the

introduction program in 2016, (70 272 individuals), 58 percent were men and 42

percent were women. 48 percent had at the most ten years of primary education, 22

percent had secondary education and 30 percent had some university education.

Approximately 40 percent among participants were between 20 and 30 years old

(Arbetsförmedlingen 2017).

1.3 Main challenges to the labour market integration of newly arrived immigrants

One of the main challenges on the Swedish labour market is the large employment

gap between natives and immigrants. The gap is particularly worrisome for newly

arrived immigrants. It is natural that it takes some time after having escaped from

one country to another to get established in the labour market. There are lots of

practical issues that must be resolved; housing, schooling and child care

arrangements for the children, for example. It often takes some time to learn the

language and to get familiar with the society and labour market of the host country. It

can also take some time to get recognition of foreign credentials. For many years

there has, however, been a worry that it takes too long for newly arrived immigrants

to enter the labour market. In 2007 it was estimated that the median time to the first

job was seven years (Integrationsverket 2007). Åslund et al (2017) report that slightly

above 40 percent among refugees had entered the labour market three years after

coming to Sweden. This share appears to be fairly consistent across immigrant

cohorts. Statistics from the PES on participants who left the introduction programme

in 2014 show that after 90 days 21 percent among women and 37 percent among

men were either enrolled in education or are employed. Looking at outcomes after 730

days, the corresponding figures are 39 percent for women and 46 percent for men

(Arbetsmarknadsdepartementet, 2017).

Although Sweden has been a country with a high share of refugee migration for many

years, the issue was accentuated in the wake of the large inflow of asylum seekers in

2015. Today we see large differences in unemployment rates between natives and

immigrants. Figures from the PES show that in 2015, the unemployment rate was 5,4

percent among native born individuals while it was 22,6 percent among those born

outside Europe. Among workers with low education the corresponding figures were 15

and 40 percent respectively. Unemployment is in general lower among those with

higher education but there are still larger differences between natives and non-

European immigrants; 3,2 percent compared to 15,4 percent (Konjunkturinstitutet

2016).


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September, 2017 4

2 Assessment of the policy measure

2.1 Asylum system

On June 21st 2016 the Swedish Government decided on a temporary law which stated

that asylum seekers applying for asylum after November 24th 2015 should be granted

a temporary residence permit valid for three years (conventional refugees) or 13

months (those who received subsidiary protection)1. If the individual is still in need of

protection when after 13 months, the permit can be prolonged for an additional 13

months. If the individual can support him or herself financially they can receive a

permanent residence permit. This temporary law has caused a lot of debate since it,

for example, creates low incentives for newly arrived to participate in education since

this does not qualify them for receiving a permanent residence permit. There has been

a worry that newly arrived rather chose any type of job, even one which they are

overqualified for, so that they can qualify for a permanent residence permit (Dagens

Nyheter 15/09/2017). In contrast to the German system, only asylum seekers that

have received a residence permit, temporary or permanent, are eligible to participate

in the introduction programme. This differs from the German system where those who

apply for asylum and belong to a group with good prospects of staying, e.g. those

coming from Syria, Eritrea, Iraq, Iran and Somalia, are eligible to take part of

integration measures organised by the Employment Agencies. In Sweden asylum

seekers are not categorised into different categories depending on their prospects of

receiving a residence permit.

Asylum seekers have the right to work in Sweden while waiting for a decision, during

certain circumstances. A person have to have been exempted from the requirement to

have a working permit, if you have ID documents and if you are applying for asylum in

Sweden (www.migrationsverket.se). While waiting for asylum they are not entitled to

participate in language training organized by the municipalities (Swedish for

immigrants (SFI)). There are, however, NGO’s that offer language training which

asylum seekers can participate in. Adults applying for asylum do not have the right to

participate in any education while waiting for the decision. Children are, however,

entitled to participate in education and pre-school activities.

2.2 Early interventions

It is an outspoken goal also from the Swedish government that early interventions are

important in order to speed up the integration process of newly arrived immigrants.

In December 2010, Sweden implemented a major reform of the integration policy, as

was described above. One of the motivations for the reform was that newly arrived

immigrants eligible to participate in the introduction programs should register at the

PES and meet with a case worker earlier than what normally was the case before the

reform. Prior to the reform, different integration measures were in many cases

performed sequentially. First, newly arrived participated in language training and after

having reached a certain level of Swedish language proficiency they could register at

the PES and start participating in labour market activities. This sequential approach of

integration measures has been abandoned and it is now a goal that newly arrived

participate in different types of measures parallel to each other. It is, for example,

possible to combine language training and work practice. The view of how to organize

and combine different types of integration measures seem to be similar in Sweden and

Germany.

As was mentioned above, only those who have received a residence permit are eligible

to participate in the introduction programmes. This seems to be a difference to the

German system where asylum seekers in the so called dedicated group have access to

integration measures early and the Swedish system where asylum seekers are

1 There is nothing similar in Sweden to the group in Germany with a tolerated stay.

http://www.migrationsverket.se/


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September, 2017 5

referred to participate in activities which mainly are organised by civil society

organisations. In 2017 The Government gave the County Councils the responsibility to

organise activities for asylum seekers. It is mainly organisations in civil society that

arrange different types of activities like language courses or social activities. It has

been acknowledged that a long waiting time for the asylum decision can be

detrimental for asylum seekers and that a possibility to participate in different

activities is important.

Currently there is a governmental investigation looking into how the system for

receiving asylum seekers can be reformed. One part of the directive is to analyse how

early interventions also can apply to asylum seekers while waiting for a decision

(Regeringen 2015).

2.3 Rights and responsibility approach

Sweden has also adopted a rights and responsibility approach and recent changes in

integration policy will further strengthen the focus on what responsibilities newly

arrived have when participating in introduction programs and receiving establishment

benefits.

Establishment benefits: Participants in the introduction programs are eligible to

receive establishment benefits. When having started to participate in activities within

the program participants can receive at most EUR 21,9 per day for five days a week.

The amount depends on the extent of the plan. If the participant performs some form

of subsidised work which is included in the introduction plan, the level of benefits is

decreased by the same amount as the income received from work. If the participant

receives some income from regular employment the level of benefits is not affected. If

the participant does not fulfil what has been stipulated in the plan, there can be

sanctions in form of reduced benefits.

Use of sanctions: If participants that receive establishment benefits do not fulfil the

requirements there can be sanctions in terms of lost benefits. It is today not clear to

what extent these sanctions are imposed. The Government wants to increase the

possibilities for case workers to use sanctions.

The right to participate in introduction program is replaced by assignment to a

program: The Swedish Government has decided that there is a need for a

harmonisation of the rules for the unemployed in general and for those participating in

the introduction programmes where the right to participate in an introduction program

is replaced by the re-assignment of participants to an introduction programme

(Regeringen 2016).

Educational duty: Recently it was decided by the Government to introduce a so called

educational duty for newly arrived. Newly arrived with very low education and that are

not deemed to be job-ready are obliged to start an education. If they refuse or drop

out there could be sanctions in form of lost benefits (Regeringen 2016).

Permanent residence permit: Similar to the German case, Sweden has started to

condition the reception of a permanent residence permit on individual efforts to

integrate. Newly arrived that are employed and can support themselves financially can

receive a permanent permit. But there is no requirement in Sweden concerning the

time spent in the country or having reached a certain level of Swedish language

proficiency.

Settlement: With respect to settlement there are differences between the countries. In

Sweden asylum seekers have the possibility to choose where to live during the asylum

process, if they can find housing of their own (EBO). Asylum seekers that can or will

not do this, can stay at reception centres of the Board of Migration. When they are

granted asylum they are placed in a municipality but are free to move to another

municipality when they want. This is different from the German case where refugees

only are entitled to social assistance if they remain in the Land where they have been


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September, 2017 6

placed. Up until March 2017 Swedish municipalities could refuse to accept asylum

seekers that the Board of Migration wanted to place. This has now changed and

municipalities have to accept refugees settled by the Board of Migration.

2.4 Main stakeholders in labour market integration policies

The Board of Migration, the Public Employment Service (PES), the County Councils and

the local municipalities are all important actors during the introduction process which

was described above. Organisations in civil society have also come to play an

important, although not formalised, role in the process.

The Board of Migration is responsible for deciding who should get a residence permit

and for providing housing during the asylum process. The Swedish Board of Migration

would be comparable to the German BAMF in that it is responsible for assessing

asylum applications, without a role in the integration process.

Since February 2017, the County Councils are responsible for co-ordinating activities

such as language training and skill assessment during the asylum process.

The PES is responsible for the extensive introduction programmes for newly arrived

immigrants and tied movers after having received a residence permit. While the

responsibilities for labour market integration is split between the Employment

Agencies and Job Centres in Germany, depending of the legal status, the PES has the

main responsibility for labour market integration in Sweden.

The municipalities are responsible for organising language training and courses in civic

orientation for newly arrived who has received a residence permit. The municipalities

are also responsible for everything related to child care for younger children and

schooling for older children as well as for adult education.

Civil society organisations do not formally play an important role in the integration

process. However, there have been important local initiatives, in particular during the

most immediate crisis in the fall 2015. According to the OECD these initiatives

potentially also could play an important role for the labour market establishment of

refugees, for example through mentorship programmes. This is however still poorly

developed in Sweden (OECD 2016).

Both in Germany and Sweden, newly arrived third country nationals with a residence

permit and who are receiving benefits are obliged to participate in activities.

2.5 Targeted labour markets support measures

Most of the measures that newly arrived immigrants can take part in, are organised

within the intrduction program at the PES. To a large extent these measures are the

same as those for the unemployed in general, except for language training and

courses in civic orientation. Below I briefly describe some of the measures targeted

specifically at immigrants2.

2.5.1. Targeted measures in Sweden

Subsidised employment: This is a measure, or actually a number of different

measures, that are available to all unemployed and administrated by the PES. There

has been one measure, Stepping-in jobs (Instegsjobb) that has been directed

specifically at newly arrived immigrants. This form of subsidy has not been used to a

very large extent but a preferred alternative has been so called New-starting jobs

(Nystartsjobb). The main difference has been that Stepping-in jobs requires that the

unemployed take part in both language training and work practice, something which

has been seen as difficult to arrange for many employers. Previous research indicate

that subsidised employment is the one of the most efficient measures in particular if it

2 These are in general measures organized on a national level. There are also many initiatives organized at the local level by different types of NGO’s. There is, however, no comprehensive information about these local initiatives and we know little about their effectiveness.


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September, 2017 7

is targeted at unemployed with a weak attachment to the labour market (Forslund and

Vikström 2011).

These types of measures have not been used to the extent that was expected since

the demand from employers has been too low. For example, the Government

estimated that there would be on average 4 000 Stepping-in jobs per month but in

reality it has been around 2 500 jobs of this types per month (Riksrevisionen 2013).

One explanation for the low demand is the existence of several different types of

subsidies which has been different in design and regulatory framework. The system

has been perceived, both by employers and caseworkers, as too complicated. The

Government has responded to this criticism and has decided to merge five different

types of subsidies into one. For these so called Introduction jobs (Introduktionsjobb)

the wage ceiling will be EUR 2 100 per month and the subsidy will be 80 percent.

There will be no requirement that participants take part of language training parallel to

work practice but it will be possible to combine education and work practice. The

relatively popular

Fast tracks: In 2015 The Government introduced so called Fast tracks (Snabbspår).

This is a way of creating faster tracks into the labour market for newly arrived

immigrants with experience or education in an occupation where there is a shortage of

labour in the Swedish labour market. The PES has together with the trade unions and

employer organisations decided on which types of occupations there should be fast

tracks. The fast track consists of a combination of language training, validation of

previous education and trainee work. Examples of occupations are: electricians, truck

drivers, nurses and teachers. There has also been a fast track for self-employed.

Extrajob (Extratjänster): Employers in the public sector, non-profit organisations and

organisations engaged in cultural activities can receive a subsidy to hire a newly

arrived immigrant or a person that has been unemployed for a long time. The

employer receives a subsidy corresponding to the whole wage cost and it can last for

up to 12 months with the possibility of an extension for an additional 12 months.

The Short Way (Korta vägen): The Short Way is a labour market education directed

towards highly educated newly arrived. It is organised by the PES in co-operation with

universities.

The Job Leap (Jobbsprånget): This is a four-month internship program targeted at

newcomers with an academic degree in engineering, architecture, business or science.

The program is run by The Royal Swedish Academy of Engineering Science, an

independent academy. Today, around 150 employers participate in Jobbsprånget

(http://jobbspranget.se/)

Jobskills.se: This is a recently launched digital tool where newly arrived can assess

their skills. This is similar to the German MySkills. This site specifically targets asylum

seekers who have not yet received a decision. Jobskills.se is available in six different

languages.

Swedish for immigrants (SFI): These are language courses organised by the

municipalities. There are three different levels, 1 to 3, where the first level is for those

with low education and the last is for those with higher education. There are also

language courses targeted at certain occupations. It is possible to follow one of these

courses and to combine it with work practice. Examples of occupations are; truck

drivers, nurses, construction workers and teachers. This is similar to vocational

language training in Germany. A difference compared to Germany is that in Sweden,

only newly arrived who have received a residence permit are eligible to participate

http://jobbspranget.se/


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September, 2017 8

while these types of courses also are open to asylum seekers from countries with a

high recognition rate in Germany.

Recognition of foreign credentials: In Sweden this process appears to be more

centralised (compared to Germany) and recognition is primarily done by the Swedish

Council for Higher Education (Universitets och högskolerådet). For regulated

occupations, i.e. occupations for which one needs a certificate (e.g. medical doctors,

nurses) other authorities are responsible. It is also possible, both in Sweden and

Germany, for refugees without formal documentation of their skills to get recognition.

How this is done varies by industry, but it can in both countries be done through for

example, trial work in a company and/or specialist discussions.

The 100´s club (100 klubben): This is a Governmental initiative where larger

employers, with the assistance of the PES, should be able to employ newly arrived

immigrants. The purpose was to offer tailored packages of activities for the specific

demands of the employers so that employers should be able to accept at least 100

newly arrived within three years. This initiative was launched in the October 2015 and

one year later around 700 individuals had been placed with an employer. This is a

relatively small number compared to the 52 000 newly arrived that were registered in

the introduction program at the time (Arbetsförmedlingen 2016b).

2.5.2. A comparison between Sweden and Germany

In general, there appears to be fewer measures targeted specifically at newly arrived

in Sweden compared to in Germany. Most of the measures within the introduction

program organised by the PES are the same as for the unemployed in general. This is

worth stressing.

Many of the targeted measures described in the host country paper, e.g. PerF,

KompAS, are similar to measures included in the introduction programs in that it

includes language training, skill assessment, and work practice.

In Germany there are special institutional arrangements that aim at fostering labour

market integration among foreign born – so called migration counselling. When the

introduction program first was implemented in December 2010 it was possible for

participants to choose a private coach, a “lots”, that was meant to play a similar role

as the German migration counsellors. This system was however abandoned in 2015

after it was revealed that some private coaches had provided newly arrived with gifts

if they were chosen as coaches. Caseworkers at the PES took over the role as coaches

after that.

One difference between Sweden and Germany is that few measures within the

introduction program are targeted at specific groups, i.e. young people or women. The

lower age limit for being eligible to participate in the program is 20 years, hence those

who are younger are expected to participate in education and not to register at the

PES.

One notable difference between the countries is that there have been no attempts in

Sweden to create low paid low skilled jobs similar to so called “easily accessible work

opportunities” with low pay in Germany. Newly arrived with subsidised employment

receive a wage similar to an employee performing similar tasks but who is hired

directly by the employer. The differences are that the PES pay most of the wage cost

while the employer only pays a smaller share.

2.6 Targeted support for the self-employed

In section 4.3 of the host country report, the lack of targeted measures to support

self-employment among refugees is discussed. We know from earlier research that

self-employment is more common among some immigrant groups than among natives

(Andersson Joona and Wadensjö 2008). Hence, for many immigrants, self-

employment could be a way of establishing themselves on the labour market. The host

country report mentions that about 30% of asylum seekers and refugees stated that


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September, 2017 9

they were self-employed in the home country. Even though there is evidence

indicating that a large number of newly arrived immigrants have experience from self-

employment in their home country, few receive support to start a firm of their own

and become self-employed both in Germany or Sweden. One criticism that has been

directed to the PES in Sweden is that caseworkers do not ask about previous self-

employment experience when designing the individualised introduction plan. Although

it is possible to receive financial support from the PES to start a business within the

introduction program, very few receive this support. It has therefore been suggested

that more efforts could be put into identifying newly arrived that could benefit from

receiving support to start a business of their own.

3 Assessment of the success factors and transferability

3.1 Implementation of rights and responsibility approach

With respect to the rights and responsibility approach Sweden is in many ways similar

to Germany. Sweden has, however, gone a step further regarding the rights of newly

arrived with a residence permit in the social insurance system. Newly arrived parents

have, for example, the same right to parental benefits as parents who have lived in

Sweden a long time. The level of benefits is, however, income based which means that

newly arrived often only have the right to a minimum level of compensation. The

generosity of the system has been criticized, mainly for creating low incentives for

women in fertile ages to participate in the labour market. Previously, newly arrived

parents could retroactively get access to 480 days of parental leave for children up to

eight years, these were the same rules as for native parents. This has now changed

and newly arrived parents have 200 days of parental leave if the child has turned one

and 100 days if it has turned two.

The Swedish Government has recently suggested changes that further stress the

responsibilities of newly arrived. With the introduction of the so called educational

obligation (Utbildningsplikt). Low skilled immigrants within the introduction program

should first and foremost participate in education so that they can be matched to a job

on the Swedish labour market. Refusal to participate can lead to sanctions in forms of

lost benefits. Although the educational obligation is a new measure that will be

implemented starting from January 1st 2018, it is currently possible for caseworkers to

use sanctions if newly arrived who do not adhere to the introduction plan. This is

similar to the German case where refugees receiving basic income allowance are

obligated to participate in certain activities.

3.2 General and targeted interventions

As in Sweden, Germany seems to focus on different measures within the active labour

market policy (ALMP) to promote employment among newly arrived immigrants. There

have not yet been any evaluations of measures targeted at this group in Germany, but

some initial follow-up studies indicate that successful recognition of foreign credentials

increased employment chances. Investments in language programmes and labour

market integration also seem to have high returns.

For Sweden, we know little about which type of activities within the introduction

programme that works well and which activities that work less well. Policy makers

often rely on results from studies on the effect of ALMP for the whole population and

as was mentioned above, subsidised employment is often seen as one of the most

effective measures. One problem has been, which seems to be similar to the German

case, a low demand from employers to hire unemployed with these types of subsidies.

This has been the case in spite of very generous subsidies. One explanation has been

the existence of several different types of subsidies that vary in both the level and

length of the subsidy but also with respect to in what way newly arrived could, and

should, combine language training and work practice. This complicated system has


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September, 2017 10

been criticised and recently the Government decided on simplifications. For example,

the number of different types of subsidies will be reduced (Regeringen 2017b)

Sweden seems to share the experience with Germany that participation rates in

targeted programs are low. For Sweden, one explanation has been that the PES have

had difficulties to identify eligible participants, mainly for the different fast tracks.

Whether this is an indication that there is a shortage of workers with these skills also

in the immigrant group or a result of the fact that caseworkers at the PES do not have

the right tools to identify them, is an open question. For both countries this seems to

be an area where there is room for improvement.

As in Germany, there has been few evaluations of the effectiveness of different types

of measures. Exceptions in Sweden are Åslund and Johansson (2011) and Andersson

Joona and Nekby (2012). The latter evaluation analyses a randomised experiment

where participants in the project were given intensified coaching and counselling from

PES caseworkers. The results indicate a positive effect on employment. In many cases

it is advisable to perform a pilot study where participants are randomly assigned to a

measure, before this measure is implemented on a larger scale. A simple comparison

of outcomes between participants and non-participants cannot take into account

possible selection into different types of activates and differences in outcomes might

hence be caused by differences in selection. To be able to more accurately assess the

effectiveness of a specific measure, more randomised experiments within this policy

area are needed. With respect to this, Denmark can serve as a good example since a

number of policies have been tested in small scale projects using random assignment

before implementing the policy nationwide (see for example Lykke Sørensen 2016).

3.3 Early interventions

It seems like the early intervention approach in Germany is perceived as a successful

strategy. This has also been seen as important in the Swedish context. One of the

purposes of the Swedish establishment reform that was launched on December 1st

2010 was that newly arrived should register at the PES and start the introduction

program within 3 months after receiving a residence permit. An early evaluation

comparing those who got their permit shortly after the implementation of the reform

to those who got their permit in the 10 months preceding the reform, reveal that

employment chances had increased by almost 3 percentage points three years after

enrolment in the program (Andersson Joona et.al. 2016).

Today, early introduction in Sweden mainly applies to those who have received a

residence permit. Asylum seekers waiting for a decision to be made cannot participate

in the introduction program organized by the PES. As in many other countries the

waiting time is long, in particular for those who have come since the fall 2015.

There have been some attempts to also include asylum seekers into the process of

early interventions. In February 2017, the government decided to give the County

Councils the responsibility to co-ordinate different types of early interventions for

asylum seekers. These early interventions include language training and skill

assessment. As was discussed above, this is different from the German case where

asylum seekers with a good prospect of staying also are eligible to participate in

different integration measures.

There seems to be consensus, both within and across countries with integration

policies that early interventions are important to speed up the integration process of

newly arrived immigrants. Even if it is difficult to compare the systems it seems that

Germany has gone one step further when it comes to early interventions directed

towards asylum seekers. In Germany, Employment Agencies are responsible for the

integration of asylum seekers prior to recognition. The focus on the types of activities

in Sweden seem to be more on activation of asylum seekers than on measures to

promote labour market integration although Sweden is moving in the direction of

providing more measures for asylum seekers to already during the asylum process


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September, 2017 11

learn the language and get their skills recognised through the use of the digital tool

JobSkills as it was mentioned above, this is similar to the tool MySkills in Germany.

But there is a difference between Germany and Sweden in that asylum seekers with

good prospects of receiving a residence permit are eligible to register at Employment

Agencies in Germany and cannot do so in Sweden. This is, however, something that

the governmental investigation of the system for receiving asylum seekers will look

into (regeringen 2015).

3.4 Measures to improve qualifications of low skilled immigrants

The host country paper notes that other countries might choose other upskilling

pathways for low skilled adults due to the German VAT system.

Similar to Germany, Swedish employers to a high extent rely on formal qualifications

when hiring new employees. To what extent we should rely on measures to improve

skills of newly arrived immigrants in order to increase employment is also discussed in

Sweden. As was described above, the Government has recently introduced the so

called educational duty for newly arrived low skilled immigrants participating in the

introduction program. This an indication of the emphasis that is placed on measures to

increase the skill level among those with low qualifications.

Combined measures: Sweden has also adopted the strategy where newly arrived can

participate in different types of activities that run parallel to each other, e.g. language

training and work practice, as opposed to doing this sequentially. This parallel

approach has been deemed to be a success factor in the German case.

3.5 Success factors and transferability

Additional to what has been discussed above, the host country paper mentions the

following success factors: the counselling infrastructure, the involvement of employers

and the political will. These are all important aspects of the integration process in

general. The counselling infrastructure is very important but it is also a complex task,

in particular if the target group is newly arrived immigrants. In many cases this group

may be in need of assistance in other matters than purely those related to labour

market integration, such as housing, schooling for the children, contacts with other

authorities etc. Caseworkers at the PES might not have an expertise in these areas

and it might take focus from skill assessment and matching. OECD have stressed that

many employers in the Swedish labour market recruit through informal networks.

Since newly arrived in many cases lack this network the PES constitutes an important

link between the newly arrived and potential employers. Caseworkers at the PES

therefore play an important role in the matching process (OECD 2016).

The involvement of employers is of course also crucial and there are several examples

of this e.g. the so called 100´s club and the Job Leap. Most of these initiatives are

often performed in a small scale and few have been evaluated.

The integration issue is placed high up on the political agenda in Sweden and there are

numerous political initiatives to increase the transition into employment among newly

arrived. For example, the prime minister took the initiative to “Sweden Together”

(Sverige tillsammans), an initiative which consists of a number of conferences were

representatives for different stake holders meet and discuss challenges and

possibilities related to the establishment of newly arrived immigrants.

There are some issues that needs to be considered. First, few of the planned changes

have been tested in pilot studies and the effects are beforehand uncertain. The need

for this type of studies is also mentioned in the German report. Second, the PES are

faced with a major challenge when the total number of participants in the introduction

program increased from around 4 400 in 2001 to an estimated number of participants

of almost 77 000 in 2017. Concerning the early intervention measures adopted in

Germany, in particular regarding making asylum seekers eligible to participate in


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September, 2017 12

integration measures organised by the Employment Agency, this could be transferred

to Sweden. It is however important to note that the most immediate challenges

concerning labour market integration is related to those who came in 2015, have

received a residence permit and will be enrolled in introduction program during 2017.

It is, however, important to have a sustainable and well-functioning system for asylum

seekers also in the long run making a revision of the reception system in Sweden an

important task for the future.


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September, 2017 13

4 Questions to the host country in the Peer Review

To what extent do Employment Agencies focus on labour market related

activities for asylum seekers waiting for approval?

Are tied movers eligible to take part of targeted measures?

What type of settling strategy for newly arrived immigrants is adopted in Germany?

Has this been an issue in the debate on labour market integration?


Comments Paper

September, 2017 14

5 References

Andersson Joona, Pernilla and Lena Nekby (2012),” Intensive coaching of new

immigrants: an evaluation based on random assignment”, Scandinavian Journal of

Economics, Vol.114(2), pp. 575-600.

Andersson Joona, Pernilla, Marianne Sundström and Alma Wennemo Lanninger

(2016), “Reforming the integrration of refugees: The Swedish experience”, IZA

Working Paper No. 10307.

Andersson Joona, Pernilla and Eskil Wadensjö (2008),” A note on immigrants’

representation in temporary agency work and self-employment in Sweden”, Labour

Economics, Vol. 22(3), pp. 495-507.

Arbetsförmedlingen (2016a), “Ekonomiskt utfall inom Arbetsförmedlingen under

budgetåret 2016”, Arbetsförmedlingens återrapportering, Dnr: AF-2016/0047 2104.

Arbetsförmedlingen (2016b), ”100-klubben. Uppföljning an enkät med medverkande

företag oktober 2016”, Arbetsöfrmedlingen.

Arbetsförmedlingen (2017), “Kunskapsöversikt: Nyanländas etablering på den svenska

arbetsmarknaden”, Working Paper 2017:5.

Arbetsmarknadsdepartementet (2017), ”Regeringens arbete med nyanländas

etablering – stärkta spår till jobb”, Presentation June 27th 2017,

http://www.regeringen.se/sveriges-regering/arbetsmarknadsdepartementet/.

Åslund, Olof, Anders Forslund and Linus Liljeberg (2017), “Labour market entry of

non-labour migrants – Swedish evidence”, Working Paper No. 2017:15, Institute for

Evaluation of Labour market and Education Policy: Uppsala.

Åslund, Olof and Per Johansson (2011), “Virtues of SIN: Can intensified public efforts

help disadvantaged immigrants” Evaluation Review, Vol. 35(4), pp. 399-427.

Budgetpropositionen 2018,

http://www.regeringen.se/rattsdokument/proposition/2017/09/prop.-2017181/.

Dagens Nyheter, ”Nyanlända behöver utbildning – inte politikernas låglönejobb”, DN

Debatt 2017-09-15, http://www.dn.se/debatt/nyanlanda-behover-utbildning-inte-

politikernas-laglonejobb/.

Forslund, Anders and Johan Vikström (2011), ”Arbetsmarknadspolitikens effekter på

sysselsättning och arbetslöshet - en översikt”, Report No. 2011:7, Institute for

Evaluation of Labour market and Education Policy: Uppsala.

Integrationsverket (2007),”Statistikrapport 2007 – uppdatering av aktuella siffror,

relevanta nyckeltal och indikatorer om integration”, Norrköping.

http://www.regeringen.se/sveriges-regering/arbetsmarknadsdepartementet/

http://www.regeringen.se/rattsdokument/proposition/2017/09/prop.-2017181/

http://www.dn.se/debatt/nyanlanda-behover-utbildning-inte-politikernas-laglonejobb/

http://www.dn.se/debatt/nyanlanda-behover-utbildning-inte-politikernas-laglonejobb/


Comments Paper

September, 2017 15

Konjunkturinstitutet (2016), “Lönebildningsrapporten 2016”.

Lykke Sørensen, Kenneth (2016),” Heterogenous impacts on earnings from an early

effort in labor market programs”, Labour Economics, Vol. 41, pp. 266-279.

Migrationsverket, www.migrationsverket.se

OECD (2016),“Working together: Skills and labour market integration of immigrants

and their children in Sweden”, DOI:http://dx.doi.org/10.1787/9789264257382-en

Regeringen (2017a), Budgetpropositionen 2018.

Regeringen (2017b), Press release 2017/09/20,

http://www.regeringen.se/pressmeddelanden/2017/09/arbetsmarknadsdepartementet

s-satsningar-i-budgetpropositionen-for-2018/).

Regeringen (2015), “Översyn av mottagandet och bosättningen av asylsökande och

nyanlända”, Kommittédirektiv Dir 2015:107.

Regeringen (2016), “Ett nytt regelverk för nyanlända invandrares etablering i arbets-

och samhällsliv”, Regeringens Proposition 2016/17:175.

Riksrevisionen (2013), ”Ett steg in och en ny start – hur fungerar subventionerade

anställningar för nyanlända?, RIR 2013: 17.

http://www.migrationsverket.se/

http://dx.doi.org/10.1787/9789264257382-en

http://www.regeringen.se/pressmeddelanden/2017/09/arbetsmarknadsdepartementets-satsningar-i-budgetpropositionen-for-2018/

http://www.regeringen.se/pressmeddelanden/2017/09/arbetsmarknadsdepartementets-satsningar-i-budgetpropositionen-for-2018/


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September, 2017 16

Annex 1 Summary table

Please summarise the main points covered by the paper. Give a maximum of five

bullet points per heading.

Situation in the peer country relative to the host country

Sweden experienced a large inflow of asylum seekers during the fall 2015. This

has led to a large increase in the number of newly arrived migrants that will

participate in the introduction program.

Both the Swedish and the German labour market are experiencing an upturn

and unemployment in general is low. However, some industries are

experiencing a shortage of qualified labour. Unemployment rates are, however,

higher among migrants.

Both Swedish and German employers rely on formal qualifications when hiring

new employees. Hence, recognition of foreign credentials is important.

Assessment of the policy measure

The Swedish system of labour market integration for newly arrived immigrants is in

many ways similar to the German system:

Focus on early interventions. Germany has, however, taken a step further than

Sweden when also offering asylum seekers the possibility to participate in

activities organised by Employment Agencies.

Both countries have adopted a “rights and responsibility” approach where newly

arrived with a protection status have the right to some basic income scheme,

they are eligible to participate in different activities that will speed up and

facilitate labour market entry but also where there could be sanctions in form of

lost benefits if they do not comply.

Abandoning the sequential approach to how different integration measures

should be combined. It is preferable that for example language training and

work practice are performed parallel to each other. …

Assessment of success factors and transferability

Sweden and Germany share similar challenges:

- Low number of participants in targeted measures

- Few newly arrived migrants receive support from the PES (Sweden) or

Employment Agencies (Germany) to become self-employed.

- There are few evaluations of the effectiveness of different measures.

Questions to the host country in the Peer Review

To what extent do Employment Agencies focus on labour market related

activities for asylum seekers waiting for approval?

Are tied movers eligible to take part of targeted measures?

What type of settling strategy for newly arrived immigrants is adopted in

Germany? Has this been an issue in the debate on labour market integration?


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September, 2017 17

Annex 2 Example of relevant practice

Short summary table, key fields indicated below (max. 1 page)

Name of the

practice:

Fast tracks

Year of

implementation:

Beginning of 2015

Coordinating

authority:

The PES, trade unions and employer organisations

Objectives: Create a fast track for newly arrived with education or experience in

specific occupations which for which there is labour shortage on the

Swedish labour market.

Main activities: The fast tracks consist of a combination of different activities

administrated by the PES; vocational language training, work

practice, recognition of foreign credentials, skill assessment, and

additional education

Results so far: There has been difficulties for the PES to find eligible participants.

Hence, there has been fewer participants than what has been

estimated. In March 2017, in total 3 540 individuals had started a

fast track since January 1st 2016.

Peer Review on 'Integration of Refugees into the Labour Market'

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