Labour market policy

The long-term goal of the Swedish Government's labour market policy is to achieve full employment. A well-functioning labour market and an efficient labour market policy are important prerequisites for both growth and welfare. To achieve this, it is important to make it easier for potential employees and employers to find one another in an efficient manner. The Government is taking steps to equip people seeking work to meet the needs of the labour market and to facilitate labour force mobility so as to avoid shortages of labour occurring, either locally or regionally.

Objectives

The overall objective of labour market policy is to contribute to a well-functioning labour market, to increase employment and to reduce social exclusion. Labour market policy must:

  • work to improve the way in which the labour market functions
  • permanently raise employment levels in the long term
  • effectively bring together those seeking work with those seeking labour
  • prioritise those who are most detached from the labour market
  • ensure that unemployment insurance works as a readjustment insurance

Scope

Labour market policy covers areas such as compensation in the event of unemployment, including unemployment benefit and activity support, employment services, labour market policy programmes, the job and development guarantee, new start jobs and the European Social Fund.

Focus

The basis of the Government's policy is to strengthen the work-first principle. Everyone who wants to and can work must have an opportunity to do so based on their own individual circumstances. The focus is on matching employers and potential employees, and resources will be invested in those who are most detached from the labour market.