sou · GVB32 · 2008-01-01 00:00:00 — Utredningen föreslår ett antal förändringar som i huvudsak finan- sieras via omfördelningar av redan befintliga medel. När det gäller förslagen om ett förändrat arbetssätt på Arbetsförmedlingarna t.ex. finansieras förslagen genom en omfördelning av AMV:s befintliga anslag. Nya kostnader tillkommer för ungdomars extraarbete . Dessa beräknas till . I över hälften av kommunerna tillämpas redan den princip som vi föreslår, och därför blir de reella nya kostnaderna . Vi föreslår att dessa ökade kostnaderna finansieras inom utgiftsområde 9 genom en omfördelning av an- slaget 18:1 Bidrag till utveckling av socialt arbete m.m. Anslaget omfattar bl.a. medel till utveckling av socialt arbete och bidrag till organisationer som arbetar för utsatta barn och deras familjer. I budgetpropositionen för föreslår regeringen att detta anslag ska omfatta , vilket innebär en ökning i förhållande med . beräknas för detta anslag. The volume and development of financial assistance largely reflects the situation in the labour market and actions and developments in other policy areas. In the course of our inquiry, we have therefore touched upon many different areas of society and have presented proposals for changes in several policy areas. This has been necessary because dependence on assistance is caused by many different factors. By the same token, the tools for achieving change are also to be found in a range of policy areas. Our starting point has been that people in the target group must be given the support they need on the basis of the established structures of society. Accordingly, our proposals seek to clarify the responsibility that different authorities bear for the target group. The inquirys proposals focus on the great majority of people who are currently receiving financial assistance for labour market reasons, since it is almost impossible to define the target group in more detail. This approach has strong support in the existing researchTPF1FPT and in the in-depth studies occasioned by the inquiry. One of the ambitions of the inquiry has been to base its proposals, as far as possible, on the individual persons opinions and views of the changes needed to strengthen his or her links to the labour market, since a lasting change can only be achieved if it strengthens the individuals own motivation and is based on each persons own circumstances. It is also important that a common socio-economic approach runs through the work of the different responsible authorities. Priorities must be more generally seen from a cross-sectoral perspective and long-term considerations must have greater influence, at both central and local levels. 1TP PT , A. (2006), Aktivering av socialbidragstagare insatsernas utformning och effekt (Activation of social assistance recipients: the design and effect of measures). paid to the socio-economic benefits that result when the need for overall social support declines in a range of social arenas. Changed methods at public employment services In this section, we mainly discuss proposals for changes that affect the activities of the public employment services and the . The inquiry proposes that ten per cent (million) of the appropriation 22:3 Purchases of employment training and other costs be set aside for procuring services from external suppliers for jobseekers who have a weak foothold in the labour market. Examples of such external suppliers may be employment agencies, education companies, organisations or social and work cooperatives.TPF2FPT One of the advantages of such a change is that external suppliers do not need to take the public authority role into account, a consideration that can sometimes limit the creativity of public employment services. Instead, external suppliers can concentrate on supporting and coaching jobseekers and leave official responsibilities to the public employment service. Another advantage is that external suppliers often have access to strategic networks other than those of the public employment services. agents – a new professional capacity at public employment services Some 6 000 people currently work at the public employment services. Wage costs for these employees amount to close to billion. A relatively small proportion of the resources of the public employment services goes to employer contacts and to job vacancy matching. 2TP PT Social and work cooperatives are independent associations of people cooperating to meet their need for work and social community through a jointly owned and democratically run enterprise. The members are often outside the ordinary labour market because of a disability. We propose that the Government instruct to restructure the human resources of the public employment services so that greater attention can be given to the service needs of employers. A new professional capacity should be introduced at the public employment services – that of job agent – whose task will be to focus on employer contacts and business sector organisations. agents must be well acquainted with employers conditions, have documented knowledge of business economics and marketing, have a good knowledge of specific industries, possess good business intelligence skills and have a good knowledge of the regional labour market in the business and public sectors. Closer employer contacts will increase the confidence employers have in the public employment services, which in time may lead to the registration of more vacancies. agents will also be able to assist in individual recruitment assignments if the employer, for reasons of time, is unable to go through a large number of job applications. In this way, job agents can facilitate the recruitment process for the employer and help minimise vacancy durations. We also propose that the Government instruct to reintroduce targeted employment services, which give officials an opportunity to specialise in specific industries and professions. This would give both employers and jobseekers a better of obtaining good services from the public employment services. Foothold jobs for new jobseekers – a supplement to new start jobs The new start jobs programme was introduced on 1 January 2007. These new start jobs aim to give people who have become very detached from the labour market greater opportunities to return to work. As regards new labour market entrants who are dependent on financial assistance, it will be possible to offer some of them new start jobs at an early stage while others may have to wait a year. We consider it important to take steps at an early stage for all jobseekers who are new labour market entrants and are dependent on financial assistance. These people often lack the contacts and references acquired by more experienced workers in the course of their work, making it for them to compete for available jobs. Their limited contact networks also make them more dependent on the opportunities and abilities of the public employment services to interest employers in their services. This mainly applies to young people and people born abroad who have not gained a foothold in the labour market, and for that reason are dependent on financial assistance. People who are obliged to rely on the last-resort safety net provided by society are also a particularly vulnerable group, since they are not only excluded from working life but are often also excluded from the income-related components of the general welfare system. We propose that foothold jobs be introduced as a supplement to new start jobs. Foothold jobs may be made available to people who are not covered by the new start jobs programme. Foothold jobs will be positions for which employers receive a tax reduction of up to 50 per cent of total wage costs, though no more than per day. This subsidy will be available for a maximum of six months, and will be applicable to full- or part-time employment with a private or public sector employer or non-profit organisation. The conditions required for a jobseeker to be offered a foothold job are that the person in question has limited experience of Swedish working life, has been registered with the public employment services for at least six months, has not earned any income by working during this period and has been dependent on financial assistance for his or her support. The foothold jobs proposal entails higher subsidies for employers than new start jobs. This in turn means that it is fair to demand more of the employer. Consequently, for an employer to be able to employ someone under the rules proposed for foothold jobs, it is proposed as a necessary condition that the employer is able to offer the employee a personal during the period of employment, and, if needed, offer personal in-service training. It is proposed that the introduction of foothold jobs be regulated by statute and that incentives to employers for foothold jobs approved by the would be provided to the employer in the form of tax credits. Individual support in the form of a can be beneficial when taking the first step into working life. One of the measures lacking today is the opportunity to give unemployed individuals personal support during work experience placement or participation in a labour market programme. Personal support may, for example, involve a workmate being selected to support the unemployed persons introduction to the workplace. The inquiry proposes the introduction of mentorship in the form of personal support during work experience placements or participation in other labour market programmes. It is proposed that mentorship be regulated in the Labour Market Policy Programmes Ordinance (2000:634). Rehabilitation through work in social and work cooperatives The added value that social and work cooperatives are able to contribute both to the individual and society should be more widely used in work-oriented rehabilitation. The strength of social and work cooperatives is that they are based on participation, self- help and giving people opportunities to develop and regain control over their own lives, which is in itself a rehabilitating experience. In this way, employment in a social and work cooperative becomes a form of rehabilitation in itself. The inquiry proposes that the developing employment (utveck- lingsanställning) and secure employment (trygghetsanställning) labour market policy programmes for people with disabilities concentrate more on social and work cooperatives. To enable more developing and secure employment positions to be channelled to social and work cooperatives, it is important that the public employment services learn more systematically from the experience of local cooperative development agencies and municipalities. It is therefore proposed that public employment services be instructed, together with the cooperative development agencies and municipal representatives, to make an inventory of local social and work cooperatives and to develop methods and routines for local matching of developing and secure employment positions at social and work cooperatives. If more social and work cooperatives are given an opportunity to start up, a more inclusive working life can be created. encourage the of more social and work cooperatives, it is proposed that the allowance given as financial support to those providing developing and secure employment positions may, in certain cases, amount to as much as per day per employee. It is proposed that to qualify for this higher allowance, a social and work cooperative must be able to start activities that offer rehabilitating programmes to people who are at present excluded from working life and who need work-oriented rehabilitation. The goal must be that working at the social and work cooperative will enable these people to move from social exclusion to an inclusive working life. We also propose that half of the funds allocated to for information and advisory services be used to promote social and work cooperatives running non-profit, work-integration programmes. Distribution of funds to labour market policy We consider that greater regard should be had to the activity rate among people of working age in different regions when funds are distributed within the . The reason for this is that the activity rate is a better indicator of the attachment of a region to the labour market than unemployment. In some deprived areas in the metropolitan regions, there are groups of unemployed people who do not consider it worthwhile even to register as unemployed with the public employment services, since they believe that such registration is pointless and will not lead to employment. This resignation, in turn, may lead to the perception that unemployment is low in that area. Low unemployment figures may, however, conceal a low activity rate, which instead indicates a high level of exclusion. Some deprived areas risk receiving a smaller share of resources if this is not brought to light. This is particularly unfortunate since some of these areas may, in fact, need a larger share in order to reduce exclusion and improve attachment to the labour market. Act to clarify responsibility for measures targeting young people receiving social welfare allowance We propose an amendment to Chapter 4, Section 4 of the Act to clarify the authority responsible for the measures that social welfare committees may require recipients of welfare allowances to participate in for a certain time. is to be responsible for work experience placement and other labour market measures. The measures to which social welfare committees assign people receiving financial assistance are to be skills-enhancing measures of a social character and aim to strengthen the individuals capacity to take part in work experience or other labour market programmes, or, when appropriate, further education. will continue to be entitled to procure services from municipalities, but municipal measures must serve as a supplement to central government action. Improved opportunities for financial coordination When a person has several types of problems, and when his or her needs are complex, diffuse and difficult to classify, coordinated action is required from several authorities. To be able to offer people in need of coordinated action measures from several parties, long-term financing is necessary. We propose that ten per cent of the budgeted costs of sickness benefit should be available for use in financial coordination, instead of the current five per cent. We further propose to allow agreements on financial coordination involving fewer than four parties. The reason for this is to avoid situations where one authority is able to prevent a joint initiative that the other actors are interested in. Under present requirements, there must be agreement to coordinate economic resources, under a set financial coordination arrangement, between a public employment service, a social insurance office, a municipality and a county council. If there are fewer than four parties, we also propose that the parties be given the opportunity to agree on a different distribution of the financial budget if this would facilitate local coordination. Local agreements may, for example, provide a basis both for the type of activities to be conducted and for financing arrangements. Further, we believe that this financial coordination should be able to lead to new ideas and new forms of welfare services at the local level. An objective of this type is not described in the current legislation on financial coordination. It is important that opportunities are provided at local level to try out different forms of organisation and new combinations of measures. We therefore propose that Section 2 of the Act on Financial Coordination of Rehabilitation Measures (2003:1210) be reworded to clarify that the coordination of rehabilitation is to serve the purpose of developing new types of measures. It is proposed that the be instructed to follow up and support the development of financial coordination. Better rehabilitation for people receiving financial assistance The need for rehabilitation measures for people who are dependent on financial assistance has been neglected, which adds to the risk of people becoming more or less permanently excluded. Diffuse health problems often lie behind dependence on benefits and it can be difficult to identify the measures that an individual needs. A more in-depth analysis may make it possible to identify rehabilitation needs and clarify the responsibilities that fall to different public authorities. We consider that there should be more structured arrangements for allowing the social services to benefit from the expertise of the with regard to examining peoples needs for rehabilitation. We therefore propose that a new provision be included in Chapter 22 of the Act (1962:381), making it clear that the is to initiate a rehabilitation investigation no later than four weeks after reception of a referral from the social services. It is proposed that the referral procedure should require the consent of the person concerned. Although much has already been done to improve rehabilitation efforts and increase cooperation in the field of rehabilitation, there is much to indicate that people who are excluded from the sickness insurance system still risk ending up last priority when deciding who should be considered for rehabilitation measures. It is therefore proposed that the be instructed to establish, together with the public employment services, municipalities and primary care, an organisational framework for cooperation on people who lack a qualifying income for sickness benefits. The aim of this cooperation is to facilitate the transition from allowances to employment for people in need of financial assistance and coordinated rehabilitation measures. It is proposed that million be allocated for this purpose. A common goal – a higher employment rate To facilitate entry into the labour market for people who are dependent on financial assistance, it is important that all the actors at local level have the same overall goal for their efforts. Otherwise, in the worst case, the authorities different goals may be counterproductive. Increasing the employment rate has long been an important political objective and we consider that this should be reflected at agency level as well. We therefore propose that a new overall common goal be included in the appropriation directions of the and the . This goal will be to increase the employment rate for everyone of working age. This will make it natural for measures to focus on reducing the growing exclusion. It will also increase the chances that people who are severely detached from the labour market will be considered for different types of measures. This goal can also be regarded as a social investment ahead of possible future labour shortages. However, the new overall goal must be adapted to the activities of the various authorities and agencies and to local self-government, so as to enable local adjustment and analysis at a later stage. A common and cohesive welfare organisation In our proposals we clarify in various ways where responsibility for the inquirys target group lies and create conditions for smoother cooperation. However, our terms of reference have not included proposing any major organisational change in welfare services. We believe, however, that like many other European countries, could reap positive results from a more coherent welfare organisation at local level. In a number of countries, a coherent organisation – a one-stop portal – for societys support to all unemployed people either already exists or is being prepared. Not infrequently, authorities with rehabilitation duties have an explicit role in these new types of organisation. We propose a more comprehensive future analysis of this issue than it has been possible for this inquiry to make. There are a number of arguments for developing coordination and bringing the support provided to individual people under a single umbrella. The most common reasons mentioned are: For the individual, it is an advantage, both financially and health-wise, to have access to , coherent rehabilitation measures. It reduces toing and froing and the duplication of labour. It requires fewer resources. Various reports read by the inquiry, as well as the local contacts it has had, show that individual people are often referred to another authority as its responsibility. In this way, people are sent round and round from one place to the next, with no one being held responsible. Of course, an organisational reform will not, in itself, solve all the difficulties involved in getting more people into work. The availability of work and the extent to which the labour market can be made more accessible are naturally of vital importance. However, a change in organisation may provide better organisational conditions for facilitating entry into the labour market for people currently outside working life. Assessment of jobseekers qualifications Among those who are now dependent on financial assistance, many were born abroad and many are young unemployed people with limited experience of Swedish working life. Their formal qualifications are either incomplete or difficult to translate to Swedish conditions. It is also a fact that municipalities and public employment services often disagree as to whether or not people receiving financial assistance are at the disposal of the labour market. For the sake of relevant and early assessment of a persons ability to work, we propose that new jobseekers who have been registered with the public employment services for at least two months be offered validation. It is proposed that this change be regulated in the Labour Market Policy Programmes Ordinance (2000:634). We also propose that a working group made up of representatives of the , , the Authorities and Regions and the be instructed to design in more detail a common instrument for assessing an unemployed persons capacity for work. This new instrument is to build on the different instruments that already exist for assessing a jobseekers qualifications. Furthermore, we propose that the Swedish Labour Market Administration continue its work on developing statistical models aimed at ensuring that the right action is taken for the right jobseeker. The three instruments – statistical models, validation and instruments to assess capacity for work – can be used to complement each other, depending on the status and needs of individuals, and can be an aid to the public employment services, the and municipalities alike. Better economic incentives for individuals The inquirys terms of reference have included analysing the influence of the design of maintenance support on economic inducements to go from social assistance to employment. We propose two changes in this area. Introduction of an activity incentive Financial assistance is the last-resort safety net provided by society, which means that all income must be deducted in its entirety before making an assessment of the need for assistance. Further, the Act (2001:453) states that no one has a right to financial assistance if their needs can be provided for in any other way (Chapter 4, Section 1). This means, for example, that increases in compensation levels in other welfare systems do not automatically lead to an increase in disposable income, since needs have then been provided for in another way. It also means that in practice, income from a persons own work makes no difference as long as the income remains at a level that leaves that person still dependent on financial assistance, since the income reduces the amount of assistance paid. Social services welfare allowances thus have a 100 per cent marginal effect, which means that it is not always financially advantageous to go from assistance to employment.