Billions paid out for 'back to work' schemes
The Swedish Public Employment Service has paid out billions to private companies to get people back to work, with few checks on the profits made, reports Swedish Television (SVT).
Close to SEK 4.7 billion has been paid out since 2008 for job coaching, rehabilitation and support to newly arrived immigrants.
The uptick in services tendered out to private companies has led to major hike in costs, according to Professor Magnus Henrekson at the Stockholm School of Economics.
“It would be the same effect if you suddenly doubled the amount of construction in the country,” he told SVT.
“Then the prices of labour and materials would rise because everyone knows that you have to buy them in. That’s how things get more expensive.”
SVT's investigation found that the 20 biggest companies involved in back to work training schemes have had profit margins of over 25 percent.
Jan-Olof Dahlgren, operations director at the national employment service, says that every effort is made to compare services on offer and to avoid overpaying companies.