Current and proposed changes on labour market policy

4 Current and proposed changes on labour market policy 

In March and June 2007, the Government submitted two bills to Parliament, which have and will radically change the hitherto existing system of labour market policy. The one proposal is entitled Further Reforms of Labour Market Policy , dated 15 March 2007,23 the other A Job Guarantee for Youths, dated 31 May 2007.24 

This new measure is meant to comprise individually tailored benefits aimed at returning unemployed persons to employment as swiftly as possible. All jobseekers who after 300 days of unemployment insurance benefit receipt have not qualified themselves for an additional insurance period by accepting a new job offer can be referred to the Job and Development Guarantee. Parents with a child under the age of 18 can choose whether they wish to take part in one of these measures or receive unemployment insurance benefits for another 150 days. Furthermore, anyone who has drawn some kind of unemployment insurance benefit for at least 18 months can be instructed to participate in Job and Development Guarantee programmes. During this time, participants are entitled to benefits pursuant to activity support. 

The same bill also contains several amendments concerning the unemployment insurance. Thus, for instance, it has abolished the general right of jobseekers to confine their search for suitable work during the first 100 days of unemployment 

In contrast to many other countries, Sweden has no equivalent of tax reduc-tions/credits like EITC in the US and the Working Tax Credit in the UK. However, 

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