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International Management - Rodchenko VV

Labor market

Employment and unemployment

Sweden is among the countries with highly developed labor market, which is characterized by an organized business, high workers' trade union membership, peaceful co-operation of employers and trade unions and the high level of organization of labor relations.

By the mid-90s over 53% of the population in Sweden and 84.5% in the age between 16 and 64 years are economically active population, which since 1970 has increased by 20%.

At a relatively low population growth and increasing life expectancy the proportion of the economically active population aged 16 to 64 years decreased. However, a large influx of immigrants after World War II joined the labor market. Foreigners now account for 5% of all employees. The influx of immigrants has been particularly noticeable in the 60s, when the industry needed labor and working conditions in Sweden were attractive, and reached its peak in 1970

Of the Nordic countries, mainly from Finland, came to 60% of immigrants. They have the same rights in the labor market, as well as Swedes. Immigrants from the five Nordic countries - Sweden, Norway, Denmark, Finland and Iceland - which constitute a single labor market, who want to work and live in another Nordic country do not need a work permit and residence permit. They can cross the border without a passport, and where they live, go to the appropriate insurance fund for unemployment and to receive public assistance, including retraining.

In Sweden, the total employment reached the active role of the state in a more passive role of trade unions, since it is impossible to cope with unemployment by lowering wages, and with an increase in the demand for labor unions can not ensure the stability of prices moderate demands wage gain. Consequently, the central point of the Swedish model "welfare state" was the fact that the responsibility for full employment and economic stability of the responsibility of the Government, trade unions and employers, together with the organizations responsible for the process of wage formation.

According to the statement of E. Wren, the main creator of the Swedish model "welfare state" solution "unemployment - inflation" is as follows: "... apply a set of general tax and financial restrictions that keep prices at a relatively low level of wages that entrepreneurs themselves effectively resist inflation higher wage demands. Then ensure full employment of special measures called labor market policies "[6]. The essence of the Swedish model is a combination of general economic measures to support demand somewhat lower level, guaranteeing a job for everyone and everywhere, selective and active labor market policies and investments in the field to support weaker groups, industries and regions.

Overall structure of employment in Sweden as of 1997 is reflected in the table. 4.2.

Table 4.2

Employment structure in Sweden 1997 according to g.

Thus, the Swedish Government, in accordance with paragraphs model "welfare state" is doing everything possible to ensure full employment of all able-bodied population and reduce unemployment in the country, which is considered a level corresponding to full-time employment for many of the leading countries of the world.