Back to Work: Sweden
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Back to Work: Sweden

Improving the Re-employment Prospects of Displaced Workers

Job displacement (involuntary job loss due to firm closure or downsizing) affects many workers over their lifetime. Displaced workers may face long periods of unemployment and, even when they find new jobs, tend to be paid less and have fewer benefits than in their prior jobs. Helping them get back into good jobs quickly should be a key goal of labour market policy. This report is the fourth in a series of reports looking at how this challenge is being tackled in a number of OECD countries. It shows that Sweden has been relatively successful in minimising the adverse effects of displaced workers, manily due to the longstanding tradition of collaboration between the social partners to share responsibility for restructuring by creating special arrangements and practices that provide help to workers much faster that in other OECD countries. Despite this positive institutional framework, there is room to improve policies targeted to displaced workers as remarkable inequalities still exist in both the Swedish labour market and in the way workers are treated.
 

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Anticipating and responding to economic restructuring in Sweden You do not have access to this content

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Author(s):
OECD

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This chapter analyses the most important policy measures in Sweden that take effect prior to workers being dismissed, in order to prevent excessive job displacements. Such measures assess the role of the social partners in the early stages of the restructuring process and include employment protection legislation, which determines the process through which employers can dismiss workers and short-time work and wage adjustment policies, in turn helping to limit excessive lay-offs.

 
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