Retraining rather than redundancy
The Swedish Government is discussing financial support to employers in order to avoid mass redundancy. This may prove more economical than unemployment in the long run, says State Secretary Jöran Hägglund to Swedish Public Service news Ekot.
In other European countries the state helps employers keep their staff on in times of recession. Instead of redundancy the employees may use the time for further training while still keeping part of their pay.
However, both Maud Olofsson, the Minister for Enterprise, Energy and Communications, and Sven Otto Littorin, the Minister for Employment have previously been negative towards this kind of scheme.
The Swedish Social Democrats want to address unemployment with further opportunities in education. In Swedish newspaper Dagens Nyheter party leader Mona Sahlin and economic spokesman Thomas Östros called for more favourable student grants as well as 25 000 more admission places in adult education. This would be part of the first step to bring those on unemployment benefits back to work through further education.