The Change of the Unemployment Pattern and the Social Security System in Sweden

Abstract

Sweden has changed its economic policy since the late 1980s, which is said to be the change of the Swedish model. Since then the unemployment pattern has been polarized between short―term unemployment of the youth with a limited contract, and long―term unemployment of the people with difficulties in the labor market. Besides, the labor market policy has changed to help the unemployed to be ready to take a job if there is a reasonable one. This means that the possibility to get out from the unemployment depends on the economic situation. During that period, social security benefit systems also changed to push recipients to the labor market, while adjusting the change of the recipients in number and their needs. The social assistance supports the unemployed as a last resort. The Swedish social security system began with the framework not to save the unemployed via social assistance, instead it stated that the unemployed should be treated under the unemployment policy. The new law on social assistance has been established in 1982 for universal coverage, and more than 40％ of recipients are the unemployed in 2014. It can be said that the Swedish model has also changed in the social security system.