11/12/2015 - More equal access to employment services and better co-ordination between the government and social partners could help disadvantaged laid-off workers get back into employment, according to a new OECD report.
Back to Work: Sweden says that 2.1% of Swedish workers with at least one year of tenure are laid off each year as firms close or downsize in response to fluctuations in demand and production. The share of workers who find a new job within one year after displacement is higher than in most other OECD countries, standing at 85%.
But successful outcomes are not shared equally between all workers. Blue-collar workers are less likely to find a new job and, when they do, are more likely to end up in temporary or fixed-term employment. Displaced low-skilled workers suffer the greatest earning losses at re-employment and these losses tend to be more persistent.
Early response measures before a dismissal takes place through Job Security Councils, which are based on collective agreements and financed by employers, are effective for many workers at risk of being dismissed. However, they do not reach all workers. Disadvantaged groups rely on job-search counselling and re-training measures provided by the public employment service, and this support is coming too late.
A major challenge is to share the economic costs of structural adjustment more equally. Large gaps in the employment protection legislation governing hiring and firing of temporary and permanent workers penalise youth and low‑skilled workers who already have a high risk of displacement, leading to a vicious circle of temporary jobs interspersed with unemployment for many young workers.
To help address these challenges, the OECD recommends that Sweden:
For further information or comment, journalists should contact the authors of the report from the OECD’s Employment Policy Division: Elena Crivellaro (tel. + 33 1 45 24 80 85, firstname.lastname@example.org ) and Shruti Singh (tel. + 33 1 45 24 19 48. shruti.singh@OECD.org ).
For a copy of the report, please contact OECD Media Division (email@example.com; tel: +33 1 45 24 97 00).
Working with over 100 countries, the OECD is a global policy forum that promotes policies to improve the economic and social well-being of people around the world.