In an ambitious bid to address Sweden’s long-term unemployment crisis, the government allocated 510 million kronor in 2024 to create establishment jobs aimed at integrating long-term unemployed individuals and newly arrived immigrants into the labour market. However, two years after the program’s launch, only 84 people have secured positions under the initiative—far below expectations. This has led to frustration among both government officials and labour market stakeholders.
A High Ambition, A Low Return
The establishment jobs program was unveiled in January 2024, with the goal of providing opportunities for individuals who have been out of work for extended periods, including many immigrants and people in vulnerable job markets. By offering a tailored job placement for up to two years, the initiative was designed to help these individuals gain skills, work experience, and ultimately secure permanent employment.
Despite early optimism from government officials, including then-Minister for Labor and Integration Johan Pehrson, who stated in a press release that “the establishment jobs are an important part of the work to get more long-term unemployed and newly arrived people into jobs,” progress has been slow. The first person hired under the program in April 2024 represented a symbolic milestone, but the numbers have been underwhelming since.
Emil Johansson, head of unit at the Swedish Public Employment Service (Arbetsförmedlingen), said that the program has made limited headway: “There are very few decisions being made. Only 84 people have been hired, and many of the 160,000 long-term unemployed individuals are still waiting.”
Government’s Investment Underutilized
In total, the Swedish government allocated 510 million kronor for the program in 2024. However, only a fraction of this funding has been used so far—just 8 million kronor. This has raised questions about the program’s efficiency and effectiveness. When asked about the low uptake, Johansson pointed to a lack of clear targets and coordination with employers, noting that while the government has made funds available, job seekers must independently find employers willing to participate in the initiative.
“We need to do more to engage with employers,” Johansson said. “It’s important that they are open to hiring people through the establishment job scheme. At the moment, there is a disconnect between employers and job seekers.”
Limited Scope and Employer Resistance
To qualify for an establishment job, both the employer and employee must sign a collective agreement, which ensures that the job is full-time and lasts for a maximum of two years. During this period, employees receive training to improve their chances of securing permanent positions. However, the scheme’s structure places the burden on unemployed individuals to find employers willing to participate. This, Johansson argues, has led to a mismatch between job seekers and employers, a key challenge identified by labour unions.
The trade union Unionen, which represents many workers in Sweden, has voiced concern over the program’s limited impact. Martin Wästfelt, head of negotiations at Unionen, pointed out that the system for matching employers with job seekers remains unclear and ineffective. “There is a serious mismatch in how this system is supposed to work,” he told the trade magazine Kollega. “We have an obligation to make it work, but it is frustrating to see so few people benefiting from it when the need is so much greater.”
In addition, the initiative has largely been concentrated in a few sectors, with healthcare and retail absorbing the majority of placements. This limited sector focus may be another barrier to broader success, particularly for job seekers with different skill sets or work experience.
Government’s Response and Call for Action
Labor Minister Johan Britz expressed his dissatisfaction with the results thus far. “I am dissatisfied,” he told Aftonbladet in a statement. “There are many newly arrived and long-term unemployed people who would benefit from getting a foothold in the labor market. It needs to be tightened, and the parties involved must take greater responsibility for this reform to work.”
While Britz acknowledged that the government has fulfilled its role by providing funding and directing the Public Employment Service to assist job seekers, he stressed that the responsibility now lies with employers and labour market partners to create actual job opportunities. “We must ensure that there are jobs available for those who need them,” he said.
The government, despite the program’s underperformance, remains committed to its long-term goals. According to Kollega, the investment in establishment jobs is set to continue, with additional funding allocated in the coming years: 11 million kronor for 2025, 84 million kronor for 2027, and 196 million kronor for 2028. However, without significant improvements in the matching process and employer engagement, these additional investments may struggle to achieve their intended impact.
Conclusion: A Long Road Ahead
The establishment jobs initiative, while well-intentioned, has thus far fallen short of expectations. With only 84 jobs created despite a 510 million kronor investment, both government officials and unions are calling for a reassessment of the program’s structure. The success of this reform will ultimately depend on the ability to improve coordination between employers, job seekers, and the public employment services. The current system, in its infancy, has not proven effective in addressing the needs of the 100,000 people still struggling to re-enter the workforce.
As the program evolves, a greater focus on employer incentives, clearer guidelines for job matching, and expanded sector participation will be essential to ensure that Sweden’s long-term unemployed and newly arrived individuals are given the opportunities they deserve. Without a more robust strategy, the gap between investment and outcomes is likely to widen, leaving many without the support they need to build stable careers.