LOCAL AUTHORITY OBSERVATORY STOCKHOLM LOCAL AUTHORITY OBSERVATORY STOCKHOLM Cities and Active Inclusion: Employment & Training Active inclusion on the labour market / Christina Groenberg / Social Welfare- and Labour Market Administration, City of Stockholm Acknowledgements With a special thanks to our reference group Cover design by: fuel. - www.fueldesign.be §§ Active inclusion on the labour market National report on the role of labour services for the active inclusion of people furthest away from the labour market Local Authority Observatory on Active Inclusion Stockholm Foreword The European Forum and Labour Market Unit at the Social Welfare and Labour Market Administration in the city of Stockholm is taking part in the EUROCITIES-Network of Local Authority Observatories on Active Inclusion (EUROCITIES-NLAO) project from March 2009 to August 2010. This project is being managed by EUROCITIES, the European network of major European cities (more than 250 000 inhabitants). Four other cities, Bologna (Italy), Prague (Czech Republic), Rotterdam (Netherlands) and Southampton (United Kingdom), are taking part in the project and have each set up a Local Authority Observatory on Active Inclusion (LAO). The aim of the project is to use local studies to examine how the EU’s active inclusion strategy is being implemented and working at local level. Two studies are being carried out within this project. The first report dealt with housing issues, and this one examines employment and active inclusion on the labour market. The purpose of these reports is to describe how policy at local level affects people at risk of social exclusion. The aim is to bring about mutual learning and use comparisons and good examples to attempt to influence future policy. Active inclusion is a comprehensive strategy for combating poverty and social exclusion across Europe based on common objectives and principles shared by all EU Member States. This strategy involves three elements: an adequate minimum income, inclusive labour markets and access to good quality social services. The Active Inclusion Policy must facilitate the integration into sustainable, quality employment of those who can work and provide resources that are sufficient to live in dignity, together with support for social participation, for those who cannot.1 The role of social services in the stimulation of active inclusion thus has two elements: 1) to help the target group to become employable and 2) to support anyone who is unable to work to live a dignified life by providing support, funding and care to establish reasonable living conditions. According to the Commission, the following social services are particularly relevant in respect of the active inclusion concept: - social assistance services - employment and training services - housing support and social housing - childcare - long-term care services - health services EUROCITIES-NLAO is a pilot project that is investigating two of the above areas: housing and employment. This project is being financed by the EU Commission, Directorate for Employment, Social Affairs and Equal Opportunities. This report is based on the literature referred to in the text, four interviews, one focus group with researchers and an expert group that has followed the process (three meetings). The draft version of this report was validated at a seminar at which experts and stakeholders in the field took part in focus groups to discuss its content and, in particular, to draw conclusions and suggest recommendations. The report was written by Maria Andersson (project employee) and Christina Grönberg (Project Manager). 1 EC Recommendation on the active inclusion of people excluded from the labour market, 3 October 2008 Definitions National labour market policies: activities aimed at the unemployed (state financed) Activation financial support: financial support within the public activation programmes Municipal labour market policies: social assistance activities aimed at the unemployed2 Social assistance: means-tested financial support from the municipality Jobbtorg: the municipal employment service in Stockholm Abbreviations Public Employment Service: PES National Social Insurance Service: NSIS This publication is supported under the European Community Programme for Employment and Social Solidarity (PROGRESS 2007-2013). The information contained in this publication does not reflect the opinion of the European Commission, and all responsibility for the content rests with the authors. 2 IFAU, Kommunerna och arbetsmarknadspolitiken, Rapport 2008:13. Lundin Martin Table of contents 1. INTRODUCTION ................................................................................................................................................ 1 2. CONTEXT............................................................................................................................................................. 1 A) POLITICS ............................................................................................................................................................. 1 The Swedish welfare state .................................................................................................................................. 1 Function of the Swedish labour market ............................................................................................................. 2 B) POLICY FRAMEWORK.......................................................................................................................................... 2 Active labour market policy ............................................................................................................................... 2 Regulation of the labour market ........................................................................................................................ 4 Job security system/Transition agreements ....................................................................................................... 5 C) GOVERNANCE ..................................................................................................................................................... 5 National level...................................................................................................................................................... 6 Regional level ..................................................................................................................................................... 7 Municipal level ................................................................................................................................................... 7 D) RECENT NATIONAL REFORMS AND POLICY DEVELOPMENT .............................................................................. 10 3. URBAN CHALLENGES AND VULNERABLE GROUPS.......................................................................... 12 3.1 MIGRANTS AND ETHNIC MINORITIES............................................................................................................... 12 3.2 YOUNG PEOPLE, EARLY SCHOOL LEAVERS...................................................................................................... 13 3.3 DISABLED, CHRONICALLY SICK PEOPLE .......................................................................................................... 14 3.4 LONG-TERM UNEMPLOYED.............................................................................................................................. 14 3.5 OTHER GROUPS WITH DIFFICULTIES ON THE LABOUR MARKET AND GENERAL COMMENTS ........................... 14 4. LOCAL PRACTICE.......................................................................................................................................... 16 4.1 APPROACHES ................................................................................................................................................... 16 4.1.1 Local economic development, Local employers and Social economy ................................................... 16 4.1.2 Integration with other policies................................................................................................................ 17 4.1.3 Local assessment, local planning ........................................................................................................... 17 4.1.4 Conditionality of social assistance ......................................................................................................... 17 4.1.5 Partnership, coordination....................................................................................................................... 18 4.1.6 Commissioning and quality management............................................................................................... 19 4.1.7 Local practices and use of ESF............................................................................................................... 19 4.2 SERVICES ......................................................................................................................................................... 20 4.2.1 Education to work ................................................................................................................................... 20 4.2.2 Concrete action at local level in Sweden................................................................................................ 21 4.2.3 Concrete actions in Stockholm...............................................................................................................