Strengthening the Governance of the Swedish Skills System

4. Priority Area 2: Engaging stakeholders throughout the policy cycle

Abstract

This chapter describes two opportunities for improvement and related recommendations for strengthening the governance of the Swedish skills system under Priority Area 2 “Engaging stakeholders throughout the policy cycle”, namely: Improving engagement with stakeholders at the national level, and improving engagement with stakeholders at the sectoral level.

Importance

Engaging with stakeholders supports policymakers in dealing with the inherent complexities of skills policies as they are uniquely positioned to offer valuable insights into the real-world effects of skills policies. Stakeholder engagement also helps generate political legitimacy, which can be an important resource when designing and implementing ambitious skills reforms. Reform efforts based on a broad consensus of involved actors are more likely to be fully accepted and broadly supported (OECD, 2020[1]). Engaging stakeholders throughout the policy cycle is the second pillar underpinning strong skills governance arrangements, as identified by the OECD (Chapter 1).

Beyond engagement with stakeholders at the national level, engagement with sectoral stakeholders is key for translating how skills needs differ significantly across sectors and regions into policy making. Sectoral arenas that cover different sectors or industries in the economy and engage relevant sector organisations can be crucial for understanding rapidly changing skills needs, potentially bridging the gap between sector needs and the labour market.

Opportunity 4: Improving engagement with stakeholders at the national level

Background

Given the specificalities of the Swedish labour market model (see the mapping section above), and Sweden’s strong tradition of social partnership, social partners and other stakeholders (e.g. education and training providers, social economy organisations, NGOs) not only possess significant insights about skills needs and the effectiveness of skills policies, but also have considerable practical implementation experience and a strong expectation of participating in skills policy making. The government in Sweden has a longstanding tradition of engaging with stakeholders on skills and labour market policy issues, surpassing traditional policy consultations by establishing bodies such as arenas, councils and networks to foster sustainable and ongoing engagement.

As mentioned in Chapter 2, the agencies participating in the Inter-agency Co-operation Structure for Skills and Lifelong Learning (Myndighetssamverkan för kompetensförsörjning och livslångt lärande, MSV), led by the Swedish National Agency for Higher Vocational Education (Myndigheten för yrkeshögskolan, MYH), established in 2023 the National Arena for Skills Supply, in order to provide a national forum for strategic engagement with stakeholders on skills policy issues, with a central focus on aligning different levels of the education and training offer with the needs of the labour market (MYH, 2023[2]).

In total, three National Arena meetings were convened. Participants from outside the MSV in these meetings have included high-level representatives of government offices, regions, business federations, employer associations, trade unions, professional associations, associations of local and regional authorities and education and training providers, and individual public education and training providers. The State Secretary for Education participated in two of these meetings. Given the challenges encountered in the arena’s initial operations (see the Issues section below), Sweden decided to discontinue the arena in its original form towards the end of 2024.

Nonetheless, it became clear during consultations undertaken as part of this project that stakeholders were motivated to actively participate in the National Arena, or a similar body, as long as key challenges in its operations were addressed. In addition, Sweden indicated willingness to reevaluate the arena’s role and functions going forward. Therefore, the Recommendations section below presents options for how Sweden could reconstitute the National Arena in order to establish it as an effective and meaningful stakeholder engagement forum on skills policy.

Issue

Sweden assigns importance to promoting engagement with stakeholders on skills policy, as evidenced by the initial establishment of the National Arena. Stakeholders in Sweden, who, have extensive knowledge of the labour market and skills supply challenges, are generally keen to engage with the government on these topics, as confirmed during the stakeholder workshop and bilateral meetings organised in the context of this project. Throughout the arena’s short operation, a number of challenges surfaced, contributing to discontinuation in its original form.

The mandate of the National Arena was not clear

The exact mandate, working methods and respective roles of the members of the arena were not clear. The arena was envisioned to be a forum for strategic engagement at the national level, a need for which was identified by Sweden following a mapping of existing arenas for stakeholder engagement on skills (MYH, 2023[2]). However, not all stakeholders and governmental agencies were equally convinced of the need for such an arena, with some sceptical about whether their participation in such a strategic-level arena will be worthwhile, emphasising the need for the arena’s work to lead to concrete results. It was not clear to stakeholders how concrete results can be achieved through the National Arena as it was conceptualised.

While it is important to allow stakeholder commitment and trust to develop over time (OECD, 2020[1]), it became clear during workshop discussions and bilateral meetings that stakeholders would not be motivated to take part in the National Arena if it served solely or primarily as an information-sharing forum. Nonetheless, all stakeholders and agencies expressed willingness to actively participate in the National Arena, or a similar body, if there were a clear and strong case made for its existence. Stakeholders also put forward several considerations for what the mandate of the National Arena could be, for example an advisory body on issues requiring co‑operation between agencies, especially those identified at the regional/local/sectoral level as needing national-level action; a co‑ordination body for other national/sectoral skills arenas; and a collaboration body for creating “joint ventures” between agencies and stakeholders. The Skills Arena Stockholm (see Chapter 3) was often mentioned as relevant national good practice to potentially consider going forward.

There are trade-offs related to the positioning of the arena as a strategic forum with high-level participation. A national arena at a strategic level is naturally better placed for vision-setting, identification and alignment of priorities, whereas a technical-level arena would be better suited for detailed technical discussions or implementation decisions. Both objectives are important in their own right and can lead to achieving meaningful results in the long term and medium/short term, respectively.

Lack of opportunities to engage with relevant ministries would impact on stakeholders’ willingness to participate in the National Arena

Stakeholders also expressed that they may be unwilling to participate in the arena if there were perceived to be lack of potential impact resulting from engaging solely with agencies, rather than also with ministries. As described in the mapping section, agencies in Sweden have important implementation responsibilities in areas specified quite broadly in their respective ordinances with directives. The extent to which agencies can and do look for more room for manoeuvre depends on DGs of individual agencies and their relationships with the respective ministries. Nonetheless, several stakeholders perceived the agencies as having little power to instigate change within the skills system and table new reforms. As a result, while the arena was still operational, stakeholders indicated that they would be willing to participate in an arena that connects with agencies but not ministries; however, many stakeholder organisations in Sweden already have direct channels to the different ministries. Therefore, agencies faced the challenge of designing the arena’s mandate in a way that is perceived as conducive to achieving real impact by stakeholders (e.g. through a connection to the government level), while offering stakeholders ways of achieving such impact through channels not already used and that will add value (e.g. one gateway to several ministries at once).

The National Arena was established in an already complex system of engagement bodies

As shown in Table 4.1, governmental agencies in Sweden already run several arenas for engagement with stakeholders on specific skills policy issues. There are also regional and sectoral skills arenas in which stakeholders participate, as discussed in Opportunities 3 and 5. Therefore, agencies faced the challenge of carefully placing National Arena within the existing system and minimising potential overlaps of mandates, in order to avoid creating “engagement fatigue” amongst stakeholders, which would risk eventual disengagement.

Table 4.1. National stakeholder engagement arenas on skills in Sweden overseen by governmental agencies

Arena	Responsible agency	Other participants
Arena for advising on the operation of Arbetsförmedlingen	Swedish Public Employment Service (Arbetsförmedlingen)	Among others: Akademikerförbundet SSR (academic trade union); Swedish Agency for Government Employers (Arbetsgivarverket); Industrifacket Metall (trade union); Swedish Trade Union Confederation (Landsorganisationen i Sverige, LO); Swedish Confederation of Professional Associations (Sveriges akademikers centralorganisation, SACO); Swedish Association of Local Authorities and Regions (Sveriges kommuner och regioner, SKR); Confederation of Swedish Enterprise (Svenskt Näringsliv)
Arena for “fast-track commissioned training”1	Arbetsförmedlingen	Social partners; vocational training boards; universities; MYH and Skolverket on case-by-case basis
Council for the validation of non-formal and informal learning	Swedish National Agency for Higher Vocational Education (Myndigheten för yrkeshögskolan, MYH)	Agencies; social partners; transition organisations; SKR; Swedish National Council of Adult Education (Folkbildningsrådet)
Council for "nationally recruiting education programmes”2	Swedish National Agency for Education (Skolverket)	Arbetsförmedlingen’s agency for maritime professions; Swedish Transport Agency (marine and aviation) (Transportstyrelsen); employers; employer associations; professional associations and trade unions from the maritime, train and transport sectors; Swedish Marine Technology Forum (Svenskt Marintekniskt Forum); Research Institutes of Sweden (RISE)
Labour market council for higher vocational education	MYH	LO; Swedish Federation of Business Owners (Företagarna); Svenskt Näringsliv; Swedish Confederation of Professional Employers (Tjänstemännens Centralorganisation, TCO); SACO; Arbetsförmedlingen; SKR
Council for “introductory programmes”3	Skolverket	VET schools and universities; municipalities; City of Malmö; SKR; National Agency for Special Needs Education and Schools (Specialpedagogiska skolmyndigheten, SPSM); Swedish Schools Inspectorate (Skolinspektionen); Swedish Agency for Youth and Civil Society Affairs (Myndigheten för ungdoms- och civilsamhällesfrågor, MUCF); Folkbildningsrådet; Fryshuset (NGO)
Council for the National Qualifications Framework	MYH	Arbetsförmedlingen; Folkbildningsrådet; SKR; LO; Svenskt Näringsliv; Skolverket; SACO; UHR; Swedish Higher Education Authority (Universitetskanslersämbetet, UKÄ); Swedish Association of Universities and Colleges (Sveriges universitets- och högskoleförbund, SUHF)
Council for the “university preparatory programmes”4	Skolverket	Swedish National Union of Students (Sveriges förenade studentkårer, SFS); higher education institutions; Skolinspektionen; UHR; UKÄ
Council for assisting “transition organisations” with strategic and operational issues	Chamber College (Legal, Financial and Administrative Services Agency)	Svenskt Näringsliv; Swedish Council for Negotiation and Cooperation (PTK); LO; SKR; Public Employees' Negotiation Council (OFR); municipalities; Swedish Board of Student Finance (Centrala studiestödsnämnden, CSN); Arbetsförmedlingen
Adult education network	Rotating presidency	Skolverket; MYH; Skolinspektionen; Arbetsförmedlingen; UHR; SPSM, CSN; Folkbildningsrådet; Swedish Agency for Economic and Regional Growth (Tillväxtverket); Government Offices of Sweden
Forum network for career guidance in schools	Skolverket	Skolverket; Skolinspektionen; Arbetsförmedlingen; SPSM; MUCF; MYH; UHR; SKR; universities
Reference group with practising career guidance counsellors in schools	Skolverket	School career guidance counsellors
Network for guidance counsellors in higher education	Swedish Council for Higher Education (Universitets- och högskolerådet, UHR)	Guidance counsellors in higher education
Central Defence Forces Council5	Armed forces	Trade associations; Arbetsförmedlingen
Supplier forum with contracted providers providing matching and guidance services and labour market training programmes	Arbetsförmedlingen	Contracted providers of Arbetsförmedlingen

1. Commissioned training (uppdragsutbildningar) refers to training for employees of firms, municipalities, agencies and other organisations. Employees attend the training as part of their job.

2. Nationally recruiting education programmes (riksrekryterande utbildningar) are upper secondary education programmes that may accept students regardless of their place of residence. Secondary schools are given a special permit from Skolverket to accept students from all over the country. A secondary school can become a “national recruiter” if a demand for a specific field of study is identified in the labour market.

3. Introductory programmes (introduktionsprogram) are upper secondary education programmes for students not eligible for “national programmes”. In Sweden, upper secondary education is delivered via 18 “national programmes”, with the same content regardless of the school attended.

4. University preparatory programmes (högskoleförberedande program) are upper secondary education “national programmes” that provide students with basic eligibility to attend higher education.

5. In 2012, Riksdag decided that the majority of the armed forces’ soldiers and sailors must be on temporary duty (i.e. have another main employer), which calls for increased co‑operation between the armed forces, the private sector and society, facilitated by the Central Defence Forces Council.

Source: Compilation by the OECD based on publicly available information and information shared by Sweden.

The exact linkages between the National Arena and other governance structures at national, regional or sectoral levels in the Swedish skills system were not clear during the arena’s operation.

Challenges were evident with respect to the membership and funding of the National Arena

There were important stakeholders missing from the Arena’s meetings, such as private training providers, representatives of small and medium-sized enterprises (SMEs), and social economy organisations.

Agencies involved in the operation of the National Arena, most importantly MYH, did not receive extra funding to cover the arena’s operation, and had to reallocate existing resources to this end.

Summary

Sweden's longstanding tradition of stakeholder engagement in skills and labour market policy has been further underlined by the establishment of the National Arena for Skills Supply in 2023. Sweden decided to discontinue the arena in its original form towards the end of 2024 due to challenges in its operations. Key issues included defining the arena’s exact mandate and members’ roles, a plethora of other, existing engagement arenas and forums, determining the appropriate level of government involvement, and ensuring inclusive yet targeted representation and sustainable funding. The Recommendations section below provides suggestions for how the arena could be reconstituted to add value to the governance of the Swedish skills system.

Recommendations

While a decision has been taken to discontinue the National Arena it its original form, Sweden equally signalled openness to potentially reconstituting the arena in a different form in the future, building on lessons learnt. To establish the arena as an effective and trusted stakeholder engagement forum, it must have a clear mandate and working methods, and offer meaningful opportunities for stakeholders to influence policy and priorities. Meetings should always have a clear purpose beyond information sharing to ensure that the arena is not viewed merely as a forum for legitimising pre-determined government decisions.

The annual appropriation directive of MYH for 2024 (see more in Chapter 3) stipulates that the agencies in the MSV should ensure that other relevant national and regional stakeholders have the opportunity to participate in the inter-agency collaboration facilitated by the MSV. At the national level, the National Arena could serve this purpose (for details on how this role would function at the regional level, refer to Opportunity 3 above). More specifically, Sweden should consider reconstituting the National Arena as a strategic advisory forum for soliciting input on MSV’s annual priorities (see Chapter 3 for details on MSV’s recommended priority-setting process). This approach would give stakeholders a clear role and help ensure that MSV priorities are relevant and “owned” by all key actors, facilitating effective implementation.

In the context of engaging stakeholders in MSV’s annual priorities, the National Arena should facilitate a national-level discussion on current, emerging and future sectoral developments and their implications for national skills policies. This role is important given Sweden's fragmented system of sectoral skills bodies (as discussed further in Opportunity 5 below). These discussions should then inform MSV’s collective priorities and/or inspire action on the part of individual agencies and ministries (see more on the arena’s suggested membership below).

In arena meetings, members should be invited to provide feedback on MSV’s proposed priorities, including from a sectoral perspective (see above). The priorities, some of which could outline the need to establish new sectoral skills bodies in new or non-covered sectors (see Opportunity 5 below) or take action to strengthen Sweden’s skills data infrastructure (see Chapter 5), should be presented by MSV representatives to stakeholders at arena meetings for stakeholder feedback.

To facilitate meaningful contributions, stakeholders should receive proposed priorities well in advance, along with a transparent explanation of the consultation process involving relevant agencies, other national arenas, regions, and others (refer to Opportunity 1 for details on MSV's suggested priority-setting process). Following arena meetings, the MSV should reflect on and integrate stakeholder feedback into its priorities where applicable, maintaining ultimate decision-making authority to prevent deadlock.

To encourage active stakeholder participation in the National Arena, Sweden should introduce clear accountability mechanisms for stakeholder advice, drawing inspiration from models such as the Social and Economic Council in the Netherlands (see Box 4.1). Arena members should be informed about final MSV priorities submitted to the government annually, alongside explanations of how stakeholder input influenced these decisions, or reasons for any discrepancies. Similarly, stakeholders should be promptly informed when the government issues formal instructions outlining MSV priorities.

Once formal instructions are received, MSV agencies should operationalise priorities through project-based task forces (refer to Opportunity 2), some potentially with sectoral or skills data infrastructure focuses (discussed in Opportunities 5 and 7 below). Stakeholders should be invited to nominate representatives for these task forces and, ideally, contribute financially, fostering the achievement of concrete collaborative outcomes through the National Arena. Once the implementation of the task force projects is finalised, stakeholders should also be informed about how the project findings will be carried forward outside of the MSV (e.g. by being integrated into regular responsibilities of certain agencies) to ensure project sustainability and continued stakeholder commitment.

Besides annual meetings for giving feedback on the MSV’s proposed priorities, there should also be the possibility of convening “extraordinary meetings” of the National Arena on a flexible, as needed, basis to allow for addressing unforeseen or pressing issues.

Box 4.1. Accountability mechanisms of a stakeholder advisory body in the Netherlands

The Social and Economic Council (SER) is an advisory body on social and economic policy to the Government of the Netherlands and parliament. The SER works to achieve its objective of “a strong and sustainable economy in which as many people as possible are in work; and a fair distribution of income”. Although the SER was established by law, it is not a government institution and is funded indirectly by industry through the General Unemployment Fund.

The SER provides advice upon request from the government or on its own initiative. It has set up various committees to prepare advisory reports with recommendations that are then discussed in full council meetings. A key feature of SER’s work is developing recommendations on the basis of dialogue with all stakeholders. Its motto is “thinking, for support through dialogue”.

The SER has 33 members – 11 representatives each of employers, employees and independent experts (Crown-appointed members). The independent experts are often professors in economics, finance, law or the social sciences. Representatives of government ministries can attend the council's public meetings and committees' private meetings as observers.

More than 80% of the advice put forward by the SER is unanimous. Even though the Dutch government is not obliged to follow its advice, any unanimous agreement between the employers’ organisations, employees’ organisations and independent experts sends a powerful signal. Within three months, the government is required to respond to SER advice. If the government chooses to deviate from the advice provided by SER, it must explain the reasons for doing so.

Source: SER (2024[3]), About the SER, www.ser.nl/en/SER/About-the-SER.

The MSV secretariat should manage the administrative preparation for National Arena meetings, including tasks such as sending out invitations, preparing and sharing meeting agendas, compiling stakeholder feedback, and informing stakeholders of the finalised MSV priorities. Therefore, it will be important that sufficient resources are allocated to the MSV for its administrative operation (i.e. the secretariat) on an ongoing basis (see Chapter 3). In a similar vein, the EU funds joint secretariats supporting the implementation of international collaborative programmes and projects in a number of policy areas.

Sweden should carefully consider the composition of the National Arena's membership, based on a detailed stakeholder mapping. Besides key social partners, education and training providers should also be invited, including representatives of HEIs such as the Swedish Association of Universities and Colleges (Sveriges universitets- och högskoleförbund, SUHF), should Sweden decide to include it in the National Arena rather than the MSV’s StG. Given that most HEIs in Sweden have the status of governmental agency (see more in Chapter 3). Additionally, representatives from economically less influential or organised groups, such as SME associations, relevant idea-based organisations and NGOs, should be included.

While it is important for members to represent a range of relevant perspectives, including those of typically under-represented groups, participating stakeholders should be carefully chosen, and the overall number purposefully limited to enable meaningful deliberations. For example, invitations could be extended to representatives of peak-level bodies, provided they are sufficiently representative and connected to their membership base. This approach not only helps cap the overall number of arena members, but also encourages efficiency, organisational development and mobilisation within stakeholder organisations (OECD, 2020[1]). A smaller, targeted membership of the arena would also enable closer and deeper mutual interactions between stakeholders, thereby strengthening relationships and helping build trust amongst members. Given the strong tradition of social partnership in Sweden, strengthening relationships and building mutual trust may be less urgent for the main social partners, but may be valuable for other stakeholder groups. Box 4.2 below describes the membership of Ireland’s National Skills Council, which is limited to a chairperson and 14 members.

Box 4.2. Membership of advisory bodies on skills in Ireland

The National Skills Council (NSC) In Ireland is an advisory body on skills policy issues managed by the Department of Further and Higher Education, Research, Innovation and Science (DFHERIS). The NSC reformed following an evaluation undertaken as part of the OECD Skills Strategy Ireland project in 2023.

The reformed NSC has been re-envisioned as an independent strategic platform that aims to raise challenging skills policy questions, identify pressing skills policy gaps and provide new perspectives on skills policy topics not yet considered by government.

Following OECD recommendations, DFHERIS has also reformed the membership of the NSC. Previously, governmental actors on the NSC outnumbered non-governmental stakeholders. The reformed NSC membership includes a chairperson, who is an enterprise representative; eight representatives of enterprises from a range of sectors and sizes; one representative each nominated by a business association, association of SMEs, trade union, and the community and voluntary sector; and two skills experts.

Source: OECD (2024[4]), Strengthening the Governance of the Swedish Skills System: Report on relevant international practices in the field of skills governance, www.oecd.org/content/dam/oecd/en/about/programmes/dg-reform/sweden/Strengthening-the-governance-of-the-Swedish-skills-system-report-on-relevant-international-practices-in-the-field-of-skills-governance.pdf; DFHERIS (2024[5]), National Skills Council, www.gov.ie/en/organisation-information/7637e6-national-skills-council/.

Representatives of relevant ministries (such as the Ministry of Education and Research, Ministry of Employment, and Ministry of Climate and Enterprise) should also be invited to become arena members. Ministerial-level involvement would incentivise stakeholder participation in arena meetings as stakeholders would have a single, direct gateway to several key ministries. It would also allow ministries to hear firsthand the input potentially relevant for (re)defining future government tasks and changes in agencies’ ordinances with directives and appropriation directives (see Chapter 3), enabling stakeholders to effectively influence national-level skills policy making. Box 4.2 above describes the membership of Norway’s Skills Policy Council, which also involves ministry representatives.

In summary, reconstituting the National Arena as a strategic venue for contributing input to the MSV’s annual priorities, and as a single, direct gateway to several ministries will ensure that it adds value to the Swedish skills system. Translating jointly determined priorities into project-based task force with stakeholder participation and support will ensure that the arena produces actionable results. To build trust and ensure meaningful participation, stakeholders should be informed of meeting objectives in advance, robust accountability mechanisms should be established, and sufficient resources should be allocated to the arena’s secretariat. Additionally, while ensuring inclusiveness of perspectives, the membership should be deliberately targeted towards key stakeholders and include representatives of key ministries.

Summary of recommendations

• Consider reconstituting the National Arena for Skills Supply as a strategic stakeholder forum for advising on the MSV’s annual priorities. During annual meetings, agencies in the MSV should present the proposed priorities to stakeholders and solicit their feedback. Discussions in arena meetings should also encourage stakeholder reflections on Sweden’s current, emerging and future sectoral developments, and their related skills implications from a national perspective. To sustain meaningful stakeholder participation, clear accountability mechanisms regarding how stakeholder input will be used should be established. Once MSV’s priorities are set, arena members and other relevant stakeholders should be invited to participate in the implementation process through relevant MSV project- and outcome-based task forces (see Chapter 3). The MSV secretariat should handle the administrative preparation for National Arena meetings. Therefore, it is important that sufficient resources are allocated to the MSV for its administrative operations.

• Strategically select the members of the National Arena for Skills Supply to ensure a diverse range of perspectives, keeping efficiency in mind. Members could include representatives of key social partners, education and training providers, and representatives of economically less influential or less well-organised groups, such as SME associations and civil society representatives. However, to enable meaningful deliberations, membership should be kept to a manageable number. Representatives of relevant ministries should also be invited to become arena members as this would provide stakeholders with an opportunity to effectively influence national-level skills policy making and be an added incentive to participate.

Opportunity 5: Improving engagement with stakeholders at the sectoral level

Background

The Swedish economy displays a rich diversity, with variations influenced by regional specialisation and population distribution. The largest sectors in Sweden include services (e.g. retail, tourism, finance and healthcare), manufacturing (e.g. automotive, engineering and telecommunications), natural resources (including mining, forestry and hydropower generation) and the public sector. Geographically, the composition of the Swedish economy varies. Large cities, such as Stockholm and Gothenburg, serve as economic hubs, hosting diverse industries. Meanwhile, rural areas concentrate on specific sectors such as agriculture, forestry and mining. In this context, sector-based activities can play a crucial role in identifying skills needs within specific sectors.

As foreshadowed in the mapping section above, the Swedish skills system features various formal or informal bodies, arenas or councils that facilitate collaboration on skills-related matters within specific sectors. Notable examples include the National Healthcare Skills Council (Nationella vårdkompetensrådet), overseen by the National Board of Health and Welfare (Socialstyrelsen); the National Skills Council within the Green and Nature-based Economy (Nationellt kompetensråd inom det gröna och naturbaserade näringslivet), overseen by the Swedish Rural Network; the 13 National Programme Councils for Vocational Education and Training at Upper Secondary Level (Nationella programråd för yrkesutbildning på gymnasial nivå) and various local programme councils (Lokala programrad och yrkesråd) overseen by Skolverket; professional boards (Yrkesnämnder) established and run by social partners; and the national industry councils, overseen by the Swedish Public Employment Service (Arbetsförmedlingen) (see Box 4.3).

Professional boards (Yrkesnämnder) are a prominent type of sector-based organisation in Sweden. These boards aim to facilitate contact with education institutions and public authorities (including municipalities and national agencies) to ensure a well-educated workforce, and that skills provision is aligned with the needs of employers in specific sectors. The professional boards actively contribute to the design and provision of workers’ education and training, with some even running their own schools or training programmes, on occasion in co‑operation with municipalities, for example, the college structure explored in Box 4.3 below. Some professional boards are organised in umbrella organisations representing several professional boards within the same sector or industry. These umbrella organisations aim to support knowledge exchange between boards and facilitate broader co‑operation to align skills supply with demand. While the size and strength of the professional boards vary across sectors, most sectors are covered by one or more boards. However, co-ordination across boards and their link to national agencies and ministries vary.

There are also regional-level sectoral skills initiatives, particularly in regions with well-established skills co‑operation structures, such as Stockholm and Västra Götaland (see Chapter 3). In both regions, the Regional Skills Council is intricately linked to various sub-councils that focus on strategic sectors at the regional level, including transport, industry, tourism, trade, health and care, and construction. Some of these sector-based councils are integrated into existing regional structures. For instance, in Västra Götaland, the regional Technical College and the Health and Care College are integrated into the Regional Skills Council. In the Stockholm region, the industry councils overseen by Arbetsförmedlingen have become a part of the Regional Skills Council. Drawing from these experiences, some consulted stakeholders emphasised the importance of aligning national sectoral efforts with ongoing initiatives at the regional level. They also highlighted the advantage of working at the regional level, citing the flexibility it offers to tailor sector-based initiatives to the dynamics of the regional economy and specific skills needs.

Box 4.3. Examples of sectoral skills arenas or dialogue forums in Sweden

National Healthcare Skills Council

The National Healthcare Skills Council (Nationella vårdkompetensrådet) is a national advisory board focusing on skills development within the healthcare sector. Its mission is to address and develop strategies related to the skills required for healthcare professionals to meet the needs of the labour market. The council was established on behalf of the government on 1 January 2020 and includes representatives from regions, municipalities, HEIs, the National Board of Health and Welfare, and the Swedish Higher Education Authority (Universitetskanslersämbetet, UKÄ). It consists of 14 members and is located at the National Board of Health and Welfare, with an associated secretariat. Its areas of work include: 1) making assessments of skills supply and demand in the healthcare area and disseminating these to relevant actors; 2) supporting the adjustment of skills supply to skills demand (e.g. through ongoing dialogue with education institutions, private education and training providers, student associations, and municipalities, as well as through newsletters and the organisation of seminars or workshops); and 3) proposing initiatives to increase the attractiveness of specific fields of study. In addition, the government has assigned the council to develop a national action plan for healthcare skills supply. To promote collaboration at the regional level, six regional healthcare councils (corresponding to the six healthcare regions in Sweden) have been established with representatives from the regions, municipalities and HEIs. The 21 regions and other national agencies are not represented in national nor regional councils.

National Skills Council within the Green and Nature-based Economy

This National Skills Council was established in 2019 to address skills supply and demand issues in green and nature-based industries such as forestry, horticulture and the rural environment. The council is a meeting place for identifying, discussing and, where possible, working together on skills demand and supply questions. Participants in the council include employer representatives from the relevant industries, with ad hoc invitees including representatives from relevant national agencies such as the Swedish Agency for Economic and Regional Growth (Tillväxtverket), Arbetsförmedlingen and the Swedish National Agency for Education (Skolverket), as well as educational institutions and civil society. The council meets four times a year to discuss topics such as the number of students to accept in upper secondary and adult education, measures to attract youth to study and work in the green and nature-based economy, and measures to strengthen education provision through cross-municipal co‑operation. The members of the council also use the meetings to share experiences and best practices.

National Programme Councils for VET at Upper Secondary Level

Sweden has 13 national programme councils that advise Skolverket on various issues relating to VET at the upper secondary level, such as education supply vs. labour market needs, the quality and content of VET, and the design of support for supervisors. Each council covers a specific sector, for example there is the Council for the Building and Civil Engineering Programme, the Council for the Vehicle and Transport Programme, and the Council for the Hotel and Tourism Programme. The councils aim to make the education system more flexible and responsive to the needs of the labour market. Skolverket uses the views and proposals of the national programme councils as a basis for government reports, support materials and various decisions. It appoints the members of the programme councils, who have been nominated by employers' organisations, trade unions, industries and authorities.

Industry councils

Before Arbetsförmedlingen changed its organisational structure in 2011, it managed several industry councils to promote the alignment of skills supply with demand. The mission of the industry councils at the national level was to co‑operate with representatives of social partners and national agencies to obtain and disseminate information, with the aim of increasing knowledge about and contributing to meeting skills needs in industries where the demand for labour was high. Since 2011, the industry councils have been given less priority due to changes in the organisation of Arbetsförmedlingen. Today, only four formal councils remain in media, maritime transport, transport on land and green industries/agriculture.

The college structure

The college structure is a collaborative effort between schools, industry partners and the government to enhance the provision of VET and create pathways for students to develop skills relevant to specific industries/employers. In Sweden, a college is not a specific education institution, but a network of schools, businesses and municipalities working together to enhance the quality of VET, including by setting up quality criteria for schools and providers to become certified providers under the college structure. The quality criteria relate, among other things, to the link between provision and labour market needs, use of in-work training, creative and stimulating environment, and co‑operation with employers. Two examples of college structures are the Technical College (Teknikcollege), which includes a network of VET providers in the field of technical and engineering skills, and the Health and Care College (Vård- och omsorgscollege), which includes a network of health and care VET providers. Both initiatives are overseen by a national body organised by relevant social partners that support and govern the college structure across Sweden. The national body establishes the guidelines, principles and standards for the college initiative, ensuring a uniform and high-quality approach to VET. It also sets the criteria for schools and providers to become recognised as a college, and provides resources, support and a network of industry partners to improve the quality and relevance of technical education. The college structure is also organised at the regional level through regional and local steering groups.

Source: National Health Competence Council (2022[6]), National Health Competence Council (homepage), www.nationellavardkompetensradet.sel; Skolverket (2024[7]), Nationella programråd för yrkesutbildning på gymnasial nivå [National Programme Councils for Vocational Education and Training at Upper Secondary Level], www.skolverket.se/om-oss/organisation/nationella-programrad-for-yrkesutbildning-pa-gymnasial-niva; Teknikcollege (2024[8]), Teknikcollege (homepage), https://teknikcollege.se/

Issue

Sweden boasts a diverse economy comprising numerous sectors and industries. However, like other EU and OECD countries, it faces significant impacts from global megatrends such as the digital and green transitions. These trends are reshaping production methods in existing industries and influencing consumption patterns, in turn altering the nature of tasks performed by workers. This places considerable pressure on Sweden's skills system to ensure that the workforce is equipped with skills that are aligned with the evolving demands of various sectors within the labour market and economy.

The Swedish approach to co-ordinating skills supply and demand on a sectoral basis is fragmented

Despite its many positive elements, the Swedish approach to co‑ordinating skills supply and demand on a sectoral basis suffers from fragmentation, overlaps and gaps in responsibilities among various bodies. Nationally, these bodies often operate independently with limited co‑ordination, hindering knowledge sharing and cross-sector prioritisation. The 13 national programme councils are a notable exception, but they focus solely on upper secondary education, representing just one aspect of Sweden's broader skills system. Overlapping responsibilities among certain bodies (such as multiple bodies covering the healthcare sector) coexist with gaps in other sectors that lack dedicated sectoral bodies. The Swedish skills system could benefit from stronger co‑ordination of activities across various skills bodies to facilitate a national dialogue on sector-based skills initiatives and priorities. In addition, given the limited co‑ordination between the existing sectoral bodies in places, it is difficult to effectively reflect sectoral labour market needs in skills policy at the national level, including in the MSV. The only sectoral skills arena linked to the MSV is the sectoral arena for digital excellence, which so far focuses mainly on cybersecurity skills (see Box 4.4). According to consulted stakeholders, the sectoral arena for digital excellence has proven successful and could inspire future mechanisms to establish new or reinforce existing sectoral skills councils.

Box 4.4. Sectoral arena for digital excellence

In 2019, the Swedish government tasked Tillväxtverket and the UKÄ with a joint initiative to analyse and provide recommendations for the short- and long-term development of cutting-edge digital skills supply (Uppdrag att samverka kring kompetensförsörjningen av digital spetskompetens). As part of this mandate, these agencies were directed to facilitate dialogue and collaboration among relevant stakeholders to enhance access to activities, statistics and forecasts concerning the demand and supply of digital skills in the Swedish labour market. In their final 2022 report, the two agencies advocated for the establishment of a comprehensive sector body or arena that could unite all pertinent stakeholders. This proposed entity would offer analysis, guidance and recommendations on the demand and supply of skills in the digital domain. The agencies also suggested placing this body under the jurisdiction of the MSV to ensure a robust connection with the broader skills system in Sweden. Drawing inspiration from the National Healthcare Skills Council, it was proposed to establish a secretariat with dedicated funding (SEK 5 million per year) to support the council’s work. Subsequently, the relevant national agencies opted to integrate the work on digital skills into the MSV. However, to date, no formal council has been established in accordance with the recommendations. Instead, a more informal sectoral arena is being tested within the framework of the MSV, although this arena lacks funding and a secretariat to support its work at present.

Source: Government of Sweden (2019[9]), Uppdrag att samverka kring kompetensförsörjningen av digital spetskompetens [Assignment to collaborate on the skills supply of digital excellence], https://regeringen.se/regeringsuppdrag/2019/08/uppdrag-att-samverka-kring-kompetensforsorjningen-av-digital-spetskompetens/; Tillväxverket and UKÄ (2020[10]), Förutsättningar för främjande av digital spetskompetens – Samverkan, statistik och utbildningsmöjligheter [Prerequisites for promoting digital excellence - Collaboration, statistics and educational opportunities], https://digitalspetskompetens.se/wp-content/uploads/2020/10/Framjandet-av-digital-spetskompetens.pdf

The quality and quantity of sector-based activities varies at the regional level

Another challenge relates to the great variation in the quantity and quality sector-based activities at the regional level. Some regions co‑ordinate their skills supply activities with the needs of the sectors most prevalent in the regional economy. In regions with established Regional Skills Councils, this co‑ordination often involves forming sub-groups within the main council, as seen in Stockholm. In regions where skills initiatives are more ad hoc, these efforts may manifest as projects or targeted activities within specific sectors. In general, there is close collaboration between employers, trade unions and sector organisations (e.g. the professional boards) at both the regional and local level. Despite this variation, the regional activities offer several advantages, including the ability to design activities tailored to the specific needs of dominant sectors within the region, ensuring that the skills developed are directly applicable to available jobs. By focusing on sectors that are growing or have growth potential, regions can diversify their economic base, enhance the productivity of local industries and improve employment outcomes by supporting training activities closely aligned with regional industry needs.

Some sectors are not represented by a dedicated sectoral skills body

Several key economic sectors or industries in Sweden, such as automotive, information and communication technology (ICT), tourism, renewable energy, and pharmaceuticals, currently lack dedicated sector skills councils/arenas that gather both agencies and stakeholders. There is also a lack of strategic guidance from the national government concerning establishing future sector skills councils. Some consulted stakeholders stressed the need for a high-level strategy to guide future decisions on establishing new bodies. Among the suggested criteria, stakeholders emphasised focusing on rapidly changing or emerging sectors, particularly those influenced by the green and digital transitions. Other relevant criteria included the sector’s size in terms of employment, export or growth potential, and the identification of current or future skills gaps. Also mentioned was the need to clarify the mandate of the MSV to potentially establish new sector bodies, and the importance of building on the existing system rather than creating one to run in parallel. Some stakeholders, however, insisted that the responsibility for establishing new sector skills councils/arenas should remain with the sector/industry organisations.

Summary

Sweden's diverse economy faces significant pressures from global megatrends such as the digital and green transitions, impacting production methods and worker tasks. While several national and regional bodies oversee sector-specific skills supply, there are challenges due to fragmentation, overlaps and gaps in responsibilities. Despite strong collaboration between sector organisations and government agencies, improved co‑ordination across these bodies is essential to facilitate a national dialogue on sector-based skills initiatives. Regional efforts vary, with some areas forming structured sub-groups and others implementing ad hoc projects, but overall there is a robust collaboration at both regional and local levels. Regional activities offer several advantages, including the ability to design activities tailored to the specific needs of dominant sectors within the region, ensuring that the skills developed are directly applicable to available jobs. By focusing on sectors that are growing or have growth potential, regions can diversify their economic base, enhance the productivity of local industries and improve employment outcomes by supporting training activities closely aligned with regional industry needs.

Recommendations

To strengthen engagement with stakeholders at the sectoral level, Sweden could adopt a two-pronged strategy comprising the following: 1) stronger sector-based skills activities at the regional level; and 2) enhanced national-level discussion on skills needs across sectors. Strengthening sector-based activities at the regional level could help align training with regional labour market demand and foster regional and national economic growth. Meanwhile, enhanced national-level discussion on skills needs across sectors could support strategic prioritisation and guide national-level activities.

At the regional level, Sweden could consider establishing sectoral sub-groups for the recommended Regional Skills Councils (see Chapter 3). Each region could decide on the number and types of sectoral sub-groups to establish based on their economic composition. The purpose of the sub-groups would be to build on existing regional networks to foster co‑operation with professional boards, employers, trade unions, and education and training providers in key sectors. (see Chapter 3). Through the sub-groups, regions can gather key insights on sector developments and priorities, which can then inform national-level discussions within the Network for Regional Skills Supply Work. The network could serve as a forum to consolidate information about sectoral developments and skills needs across the regions, with these aggregated insights being conveyed to national discussions through regional representation in the MSV (Opportunity 3).

At the national level, the MSV and the National Arena could serve as forums to facilitate national-level discussion on sectoral skills needs. Representatives of the main sector bodies (e.g. the professional boards) could be invited to participate in relevant MSV task forces and in the National Arena. The latter could serve as a platform for strategic discussions on aligning skills supply with demand across sectors in the Swedish economy. The insights generated from such discussions could also be shared with the MSV as input to discussions around its annual priorities, and to inform the planning and policy decisions of individual agencies and ministries participating in the MSV (see Opportunities 1 and 4).

Sweden could also use the MSV and the National Arena as forums for identifying new priority sectors that lack dedicated sector skills bodies, assessing the potential benefits of their creation. MSV task forces could be established to bring together relevant stakeholders to explore the feasibility of bodies deemed potentially advantageous (see Opportunities 1 and 4). In identifying the potential for new priority sectors, the MSV could draw on the mapping of existing skills policies, initiatives and structures, including at the sectoral level, to be undertaken by the Skills Policy Group (see Chapter 3), as well as stakeholder insights shared at the National Arena meetings.

Efforts to further enhance Sweden’s sectoral skills body system could draw valuable lessons from countries such as Latvia and the Netherlands, which have more extensive sectoral skills systems. For instance, in Latvia, Sectoral Expert Councils (SECs) are tripartite councils that cover most sectors of the national economy. The SECs benefit from a secretariat managed by the Employers’ Confederation, which also runs the SEC Council, facilitating informal information exchange across all councils. In the Netherlands, Training and Development Funds (Onderzoek en Opleiding fondsen, O&O Funds), established through collective agreements, pool resources from employers and employees to support structured training and workforce development services within specific sectors (see Box 4.5). These examples illustrate structured approaches that Sweden could consider adopting to strengthen its sectoral skills body system, promoting collaboration and effective resource allocation across various sectors of its economy.

In summary, Sweden could consider establishing sectoral sub-groups within the recommended Regional Skills Councils to enhance co‑operation among professional boards, employers, trade unions, and education and training providers on sectoral skills needs. These sub-groups would also gather insights on sectoral skills needs to inform national discussions within the National Arena and the MSV. At the national level, the National Arena and the MSV could facilitate strategic discussions on aligning skills supply with demand in sectors and identifying the potential need for dedicated skills bodies in new priority sectors.

Box 4.5. Sectoral skills councils in Latvia and the Netherlands

Latvia

In Latvia, 13 tripartite Sectoral Expert Councils (SECs) have been established to foster collaboration among state entities, local governments, industry employers, associations, trade unions, and specialists in planning and delivering VET. These councils span sectors such as construction, energy, transport and logistics, and tourism. Key responsibilities of the SECs include developing sectoral qualification frameworks, updating occupational standards, implementing modular approaches in VET programmes, improving professional qualification exams and establishing mechanisms for recognising prior learning.

Currently, the SECs focus primarily on VET, but there are ongoing discussions about expanding their mandate to include adult education. Each SEC operates as a tripartite body comprising representatives from ministries and agencies, employers' organisations, and employees' unions. The representation of ministries and authorities in each SEC varies; for instance, the Food Industry and Agriculture SEC includes representation from the Ministry of Agriculture.

Administrative support for the SECs is provided by a secretariat managed by the Employers’ Confederation of Latvia (LDDK), funded and overseen by the Ministry of Education and Science. The LDDK also facilitates the SEC Council, an informal platform where chairpersons or deputy chairpersons from all SECs convene to exchange information and discuss current issues.

Netherlands

In the Netherlands, the Training and Development Funds (Onderzoek en Opleiding fondsen, O&O Funds) are organisations that aggregate financial contributions from employers and employees to support training and workforce development within specific sectors. The funds are established voluntarily through collective labour agreements (collectieve arbeids overeenkomsten, CAOs), which define each fund's operational principles and appoint board members.

The Dutch system encompasses over 800 industry branches consolidated into approximately 225 sectors, with 130 sectors actively supported by O&O Funds. These funds primarily aim to enhance the recruitment and professionalism of training within their sectors. They serve as central hubs for information on available training opportunities and deliver training activities.

While some O&O Funds primarily allocate funds directly to employers and employees through mechanisms such training vouchers, others take a more proactive role such as conducting analytical work in collaboration with researchers and stakeholders to identify sector-specific training needs, and designing tailored training programmes to meet those needs effectively.

Source: OECD (2024[4]), Strengthening the governance of the Swedish skills system: Report on relevant international practices in the field of skills governance, www.oecd.org/content/dam/oecd/en/about/programmes/dg-reform/sweden/Strengthening-the-governance-of-the-Swedish-skills-system-report-on-relevant-international-practices-in-the-field-of-skills-governance.pdf.

Summary of recommendations

• Consider establishing sectoral sub-groups within the recommended Regional Skills Councils to foster co-operation on sectoral skills needs. Sectoral sub-groups within the recommended Regional Skills Councils (see Chapter 3) could foster co-operation among stakeholders on sectoral skills. The sub-groups could be created to reflect the sectoral composition of each region. Input from the sectoral sub-groups should be collected and aggregated through the Network for Regional Skills Supply Work and fed into discussions at the National Arena for Skills Supply and MSV.

• Strengthen the link between the MSV, the National Arena for Skills Supply and existing sector skills bodies to facilitate discussion of sectoral skills needs nationally. This could include inviting representatives from sector skills bodies to participate in MSV task forces and the National Arena for Skills Supply, where relevant, and by using the National Arena as a strategic venue for discussions on the demand and supply of skills across various sectors in the Swedish economy. These discussions could then inform the setting of the MSV’s annual priorities.

• Use the MSV and the National Arena for Skills Supply as forums for identifying whether there are priority sectors that would benefit from the creation of sectoral skills bodies. Sweden could use these forums to identify new priority sectors that lack dedicated sector skills bodies and assess the potential benefits of their creation. If determined that creating such bodies would be advantageous, dedicated task forces could be established to bring together relevant stakeholders to explore their feasibility (see Opportunities 1 and 4). In identifying the potential for new priority sectors, the MSV can draw on the mapping of existing skills policies, initiatives, and structures, including at the sectoral level, to be undertaken by the Skills Policy Group, and stakeholder insights shared at the National Arena meetings.

References

[5] DFHERIS (2024), National Skills Council, Department of Further and Higher Education, Research, Innovation and Science, https://www.gov.ie/en/organisation-information/7637e6-national-skills-council/ (accessed on 28 September 2024).

[9] Government of Sweden (2019), Uppdrag att samverka kring kompetensförsörjningen av digital spetskompetens [Assignment to collaborate on the skills supply of digital excellence], https://regeringen.se/regeringsuppdrag/2019/08/uppdrag-att-samverka-kring-kompetensforsorjningen-av-digital-spetskompetens/ (accessed on 30 September 2024).

[2] MYH (2023), Aterrapportering: Administrative samordning av myndighetssamverkan för en väl fungerande kompetensförsörjning [Reporting back: Administrative coordination of cooperation between authorities for a well-functioning competence supply], Myndigheten för yrkeshögskolans (Swedish National Agency for Higher Vocational Education), https://www.myh.se/publikationer/aterrapportering-administrativ-samordning-av-myndighetssamverkan-for-en-val-fungerande-kompetensforsorjning (accessed on 1 October 2024).

[6] National Health Competence Council (2022), National Health Competence Council (homepage), Nationella vårdkompetensrådet (National Health Competence Council), https://www.nationellavardkompetensradet.se/ (accessed on 28 September 2024).

[4] OECD (2024), Strengthening the Governance of the Swedish Skills: Report on relevant international practices in the field of skills governance, OECD, Paris, https://www.oecd.org/content/dam/oecd/en/about/programmes/dg-reform/sweden/Strengthening-the-governance-of-the-Swedish-skills-system-report-on-relevant-international-practices-in-the-field-of-skills-governance.pdf (accessed on 5 July 2024).

[1] OECD (2020), Strengthening the Governance of Skills Systems: Lessons from Six OECD Countries, OECD Skills Studies, OECD Publishing, Paris, https://doi.org/10.1787/3a4bb6ea-en.

[3] SER (2024), About the SER, Sociaal-Economische Raad (Social and Economic Council), http://www.ser.nl/en/SER/About-the-SER (accessed on 28 September 2024).

[7] Skolverket (2024), Nationella programråd för yrkesutbildning på gymnasial nivå [National Programme Councils for Vocational Education and Training at Upper Secondary Level], Skolverket (Swedish National Agency for Education), https://www.skolverket.se/om-oss/organisation/nationella-programrad-for-yrkesutbildning-pa-gymnasial-niva (accessed on 28 September 2024).

[8] Teknikcollege (2024), Teknikcollege (homepage), https://teknikcollege.se/ (accessed on 28 September 2024).

[10] Tillväxverket and UKÄ (2020), Förutsättningar för främjande av digital spetskompetens - Samverkan, statistik och utbildningsmöjligheter [Prerequisites for promoting digital excellence - Collaboration, statistics and educational opportunities], Tillväxverket (Swedish Agency for Economic and Regional Growth); Universitetskanslersämbetet, UKÄ (Swedish Higher Education Authority), https://digitalspetskompetens.se/wp-content/uploads/2020/10/Framjandet-av-digital-spetskompetens.pdf (accessed on 1 October 2024).