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Back to Work: Sweden

Improving the Re-employment Prospects of Displaced Workers

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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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Key actors and institutions involved in managing displacement in Sweden

This chapter provides an overview of the main authorities and institutions in Sweden in charge of the design and implementation of employment policies dealing with displaced workers and the main interaction between the key stakeholders. It presents the institutions involved in the restructuring process, focusing on the marginal role of the government as opposed to the leading role of the social partners and collective agreements.

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