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Changing Swedish jobs market with a more dynamic labour participation

Friday, 25 January 2013
It looks like the Swedish labour market is becoming more dynamic with increasing participation of the elderly and immigrants. If the report presented by Swedbank, based on a survey the bank commissioned in accurate, then the Swedish labour market is really changing.

Gradually, employers could have started noticing that making their work places more dynamic with different age groups, races and the like, is an asset worth harnessing or it could be because of government policy. Unlike a few years ago, today, immigrants and the older people are increasingly being employed, according to the Swedbank survey.
According to the analysis, the government's reforms to increase the supply of labour have left a clear imprint on the labour market. This is the assessment made by Swedbank in a review of the Swedish labour market in the year 2012.

Jobs data for December showed that people aged 65-74 accounted for a large part of the increase in employment between December 2011 and December 2012. Swedbank also recognized this pattern.
"We also note that as in the previous year's trend, older people are working longer and foreign born are increasing their participation in the labour market, which continued in 2012. It is probably linked to the various policies on the labour market the government has implemented since 2007, both in terms of tax incentives, such as the Earned Income Tax Credit, and tougher rules for early retirement, "writes Swedbank.

The proportion of 55-64 year olds participating in the labour market has increased from 73 percent in 2006 to 77 percent in 2012. For foreign-born (immigrants) it has gone from almost 65 percent to 67.5 percent. Overall, among native-born, participation rates remained fairly constant at around 72 per cent throughout the period.

The elderly and immigrants are not only just participating in the labour market largely, more in both groups also have jobs. The employment rate in the 65 -74 age group, that is, over the traditional retirement age has increased from 10 percent in 2006 to 13.5 percent last year.

Among the foreign born, it has been slower, the employment rate has gone from 56 percentage to 57 percent. For the entire population aged 15-74, the employment rate in December was 65.4 percent. In the figures, the number of foreign-born people with jobs increased from 564,000 in 2006 to 716000 in 2012.

One can say that the elderly and immigrants are the winners of the Swedish labour market in recent years.
Nevertheless, lots still has to be done for the Swedish job market to become competitive across all racial and age groups. There is the need for most of the sectors to become properly dynamic. For example, immigrants still concentrate on low skill jobs such as cleaning, social and personal care and assistance, community organisers, petty trading, distributions, and lots of outdoor work.
By Team

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