arbetsförmedlingen Archives • SwedeInternational

15 Jan. – unemployment getting higher

the wrong numbers are going up
pic: svt.se

Fewer jobs, more people looking for jobs, and more people losing their jobs, DN writes, summing up the reasons why the unemployment rate in Sweden is rising again. The unemployment rate is now at 7.2%, higher than it’s been in two years, and it’s across the board – young people, Swedish-born, foreign-born, women and men.

On the other hand, however, the Swedish Public Employment Office (Arbetsförmedling) writes, there are still a lot of jobs out there – if you’re willing to “broaden your profession” and/or move. Annika Sundén, chief analyst at the Employment Office, writes that the job market has been very strong the last few years, and is now coming down from a high. Suzanne Spector, senior analyst at Nordea, SvD writes, is in agreement, saying that jobs are still being found – just there are more looking for them, and it takes more time.

The Swedish Trade Union Organization, however (Landsorganisation, LO), is criticising the government for acting too slowly, for one thing. It also criticises the Moderate and Christian Democratic parties for the budget they pushed through after the 2018 election, plus the government for the January Agreement and going along with the demands from the Center and Liberal parties to reform the Employment Office (reforms that were later cancelled under threat, see this post, this post and this post).

Another critique that LO directs towards the government is for cancelling the “extra service” jobs (extratjänster) that were doled out by the Employment Office. Extratjänster jobs were jobs in social services like health care and elder care which were heavily subsidized by the government. They were created to help people who are otherwise “a long way from the job market” (långtidsarbetslösa) to get into, or back into, the job market. The program was severely panned since permanent jobs were seldom offered to the persons after their subsidized employment was over. The jobs did raise the employment numbers, and kept some people in jobs, so the measure can (in some ways) be put down as a success, but many thought it was an expensive program that was merely obfuscating the real employment numbers.

Lars Jagrán, SvD reports, analyst at the Confederation of Swedish Enterprise (better known as Svenskt Näringsliv), remarked that the higher unemployment was expected, but was sorry nonetheless. “Those that haven’t gotten work during the good economy are going to have a harder time now, which will make integration even more difficult. ”

The Social Democrats don’t seem so worried about the numbers. Minister for Employment, Eva Nordmark, also said the higher numbers were expected and that counter measures have been put in place: 1.3 billion kronor has been earmarked for a jobs package, 900 million kronor is set to strengthen the Employment Office, and five million has been directed to the municipalities to help strengthen their economy.

“As the Minister for Employment, I feel proud that the government is meeting the situation that we see around us – we’re not at a loss, saying “goodness, oh dear” Nordmark said (oj, hoppsan). “We know what’s going on, our finances are good and we have been able to pull our efforts together now when we see a downturn on the way.”

It is precisely that Sweden’s economy is, and has been, so strong that the Left party is pushing to use that money – and to borrow more – to send out to the municipalities. The Moderate party has also just gone on record saying that more money has to be sent to the municipalities to prevent the reduction in services in the health, school, and elder care sectors: They may even in the near future join forces (as they did in regards to the Employment Office reform) to threaten the government into sending more funds to the local governments. The difference in their approaches is that the Left party wants the government to take the required monies out of savings, while the Moderate party would rather keep the savings and take it out of the foreign welfare budget.

Way back in 2014, the Social Democratic party went into the election with a promise that Sweden would have the lowest unemployment in Europe in 2020. Not going to happen. But it wasn’t a smart thing to promise in the first place.

5 Dec. – saving Unemployment and face

future uncertain
pic: Per Gudmundson, SvD

Remember back in November, when Jonas Sjöstedt threatened to bring a no confidence vote to the floor to protest the government’s plan to completely reform the Swedish Public Employment Service (better known as Arbetsförmedlingen)? If you forgot, there’s a post to read about it here. And if you didn’t, well, time is almost up. If nothing happens, the vote of no confidence on Eva Nordmark, Minister for Employment, will happen on Tuesday.

When Sjöstedt, leader of the Left party, first made this threat, he was not just protesting the disassembly and privatisation of the Employment Service, but also the provision of the January Agreement that said that under no circumstances was the Left party to have any influence over government policy. The provision was stipulated by the Center and Liberal parties specifically as a requirement for their support for the formation of the Löfven government.

It’s understandable that this was part of the Left party’s anger, as the government is absolutely dependent on the Left party to stay in power (otherwise they don’t have the votes to pass their budget). Still, it was likely the government thought that they were safe because the Left party would never vote with the Sweden Democrats, and the two right block parties, to topple them…

Until today, it turned out, when the Left party became willing to do just that. Apparently, the meetings held between the Social Democrats and the Left party have not been assuaging enough. The Left party is determined to change the course of the government in respect to the current privatisation of the Employment Service.

Despite the appearance of a wrench being thrown into the disassembly work, threats being tossed about, and very serious looks on all party leader’s faces, it’s likely most of them are glad for Sjöstedt’s moves. The Unemployment Services’ quick and dirty disassembly was causing a lot of worry and problems at the municipal level: When workers are getting unemployment help they do it through the Employment Service. Without an Employment Service office nearby, the sooner the unemployed would turn to the local municipality for help – and that would be expensive, as well as more than the municipalities thought they could handle.

With the way things were going, it looked like a disaster was shaping up. Despite having previously been very much in favor of dismantling the Employment Service, the Moderate party and the Christian Democrats are now saying that they have always thought the deconstruction was going too quickly, and that’s why they are backing Sjöstedt. They are also happy when their former Alliance parties, the Center and Liberal parties, don’t get what they said they were going to get by leaving the Alliance and throwing their support behind the Social Democrats: If they can make the Center and Liberal parties look bad, the Moderate and Christian Democrats won’t be fussy about how.

Even Löfven is secretly happy because he has definitely not been a fan of this process, but was forced into moving quickly by the Center and Liberal parties and the agreement they signed back in January. The Left, Moderate, and Christian Democratic parties are actually doing him a favour if he can get out of it.

What remains to be done is for Löfven to spend the next few days finding ways to pacify the Center and Liberal party leaders and help them find ways to save face when the Unemployment Service is now not going to be disassembled as rapidly as first imagined. The Center and Liberal parties know that if the no confidence vote goes through, the government will be significantly weakened and they could find themselves on their own. A way to avoid this is most likely going to be found.

Meanwhile, Minister Eva Nordmark must be feeling a bit like a punching bag. A no confidence vote is supposed to mark no confidence in the Minister. The Left, Moderate, and Christian Democratic parties, plus the Sweden Democrats, though, are not actually protesting her, or the way she is doing her job: They’re using a no confidence vote against her to not just protest a current political course of action, but to get back at the government and its supporting parties. It’s going to be hard to see any impressed faces on the voters anytime soon.

21 Nov. – another no confidence motion in the works

Sjöstedt has no confidence
pic: Jessica Gow/TT

Jonas Sjöstedt, leader of the Left Party, has threatened to set a no confidence vote into motion against Minister for Employment Eva Nordmark (read about no confidence votes here). Sjöstedt has made five demands, of which the first one is the big one:

the government stops the privatisation of the Swedish Public Employment Service, aka Arbetsförmedlingen,
the government allocates extra funds to stabilize the Employment Service’s ongoing work,
the government creates an economically detailed and timely plan for stopping the closing of Employment Service offices, and ensures a continued presence across the country creates a plan and make the necessary decisions in the law or in regulations to maintain and develop the Employment Service’s special competencies regarding special needs and support for the disabled,
the government states that any reform of the Employment Services will first be fully investigated in all relevant aspects, including cost estimates and transition procedures, before any part of the Employment Service is changed. An important part of this investigation is how municipalities’ responsibilities and economic situation is affected.

Reforming the Employment Service was a condition set by the Center Party to not vote down the Social Democrats in their bid to remain in power after the last election. Together with the Liberal party, the Center party and the two government parties agreed to a 73 point plan (also known as the January Agreement) that was filled with demands, including a total change in how the Employment Service was set up.

Many of the changes were anathema to Social Democratic voters, let alone Left party voters. The point that likely most sticks in the Left party’s craw is where it says ““This agreement means that the Left Party will not have influence over the political direction in Sweden during the coming term of office” (socialdemocraterna.se).

Sjöstedt is now considering calling the government’s bluff. Only together with the Left party does the government, together with the support from the Center and Liberal parties guaranteed by the government fulfilling the 73-point agreement, have the votes to pass legislation. Up until now, and even with the clause that was created to shut them out, the Left party has not withdrawn their support for the government: The alternative was clearly worse for them.

However, it seems that the Left party’s acquiescence is over, and that they’re even willing to accept support for their no-confidence motion from political opponents. The Sweden Democrats are already 100% behind the Left party’s idea, and even the Moderate Party is considering it. “We want to unseat all this government’s ministers, so it’s very likely that we’ll go along with a vote of no confidence” remarked Jimmie Åkesson, leader of the Sweden Democrats. Although reforming the Employment Service has been part of their platform for a long time, the Moderate party has problems with how it’s been implemented. Group leader for the Moderate party in Parliament, Tobias Billström, commented that although the Left and Moderate parties have very different ideas on how the Service should be run, the current plans for reforming it are “poorly thought out and badly instituted” and lack parliamentary support, to boot (SvD.se/Nordmark).

The question is what the government can do to appease the Left party, while not alienating the Center party. Also the Liberal party is left in a crunch situation: they went along with supporting a Social Democratic government largely to keep the Sweden Democrats isolated,and only as long as the January Agreement was upheld by all sides. If the government downshifts on its commitment to the agreement, the Liberals will be left hanging, and this when they are only just barely above the 4% threshold.

Sjöstedt has said that the government has two weeks to respond before he makes a no confidence motion.

16 July – in Sweden, even unemployment is gender equal

SvD reports today that the latest figures from the Swedish Public Employment Service (Arbetsförmedlingen) show that 337,000 people in Sweden (6.7%) are unemployed. The news is that there’s been an increase in unemployed women, and a decrease in unemployed men – making unemployment just now equal between the sexes.