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Unemployment

Tax cuts create few new jobs for youngsters

Published måndag 28 februari 2011 kl 10.29

Critics claim that the Swedish center-right government's program to create more jobs for youngsters has back-fired - and cost the state huge sums for the relatively few new jobs created.

In an effort to reduce the embarrassingly high level of unemployment for young people here - much higher than in other Nordic neighbors – the program provides cuts in payroll taxes for company's hiring new young workers.

However, some companies such as the hamburger chains traditionally employing a large number of youngsters for the low-paid, stress-filled shifts have made large gains with the tax reductions but have not hired many more workers then before.

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