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Limiting Long-Term Unemployment and Non-Participation in Sweden

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  • Niels-Jakob Harbo Hansen

Abstract

After the onset of the crisis, unemployment in Sweden increased markedly, though much less than expected and than during the early 1990s, even as participation in the labour market held up well. The challenge going forward is to ensure that high unemployment does not become entrenched or leads to withdrawals from the labour force. The government has taken measures to mitigate this risk, particularly in the areas of job-search incentives and enrolment in education. Nevertheless, additional reforms are needed to ensure a sustained job-rich expansion. Such reforms should focus on increasing the flexibility of the labour market and strengthening job-search incentives further. This Working Paper relates to the 2011 OECD Economic Survey of Sweden (www.oecd.org/eco/surveys/Sweden). Limiter le Chômage de Longue Durée et la Non-Participation à l'Activité en Suède Après qu’a éclaté la crise, le chômage en Suède a augmenté fortement, bien que beaucoup moins que prévu et que pendant le début des années 90, même si la participation au marché du travail s’est bien maintenue. Le défi pour l’avenir consistera à éviter que le haut niveau de chômage ne perdure ou ne conduise à des retraits de la vie active. Le gouvernement a pris des mesures pour atténuer ce risque, en particulier avec des incitations à la recherche d’emploi et en encourageant le recours à la formation. Néanmoins, d’autres réformes seront nécessaires pour garantir une croissance soutenue riche en emplois. Il faudrait s’attacher à accroître la flexibilité du marché du travail et à renforcer davantage encore les incitations à la recherche d’emploi. Ce document se rapporte à l’Étude économique de la Suède de l’OCDE, 2011 (www.oecd.org/eco/etudes/suede).

Suggested Citation

  • Niels-Jakob Harbo Hansen, 2011. "Limiting Long-Term Unemployment and Non-Participation in Sweden," OECD Economics Department Working Papers 842, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:842-en
    DOI: 10.1787/5kghxkjj1s6l-en
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    More about this item

    Keywords

    coût du travail; dualisme du marché du travail; employment protection legislation; labour costs; labour market dualism; législation sur la protection de l'emploi; minimum wage; public employment services; salaire minimum; service public de l'emploi; Suède; Sweden;
    All these keywords.

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law

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