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Focusing on the most vulnerable Modernization of social protection and supporting activation. Maria Hemström Ministry of Employment Sweden. The largest Swedish trade union Magazine August 29, 2008. EMPLOYMENT NOW ALL TIME HIGH. EMPLOYED. EMPLOYED. EMPLOYED. UNEMPLOYED. EMPLOYED. - PowerPoint PPT Presentation
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Ministry of Employment Sweden
Focusing on the most vulnerable
Modernization of social protection
and supporting activation
Maria HemströmMinistry 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, %)
1990 1993
Unemployment 1,5 8,3
Labor force participation 84,5 77,7
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
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-structureNeed 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-structureNeed 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)
300
80 %
600
PREVIOUS SYSTEM
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
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
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
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
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
Ministry of Employment Sweden
The SICKNESS INSURANCEBenefit level (% of previous income)
Time on sick leave(No of months)
80 %PREVIOUS SYSTEM
Ministry of Employment Sweden
The SICKNESS INSURANCEBenefit level (% of previous income)
Time on sick leave(No of months)
80 %PREVIOUS SYSTEM
CURRENT SYSTEM
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?
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?
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?
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?
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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