Fredrik Reinfeldt can gloat over the "glowing" low unemployment figure released to Swedish media Oct. 10th, a record-low 3.3 percent by the end of September this year, as compared to 4.2 percent last year. The non-socialist Alliance government won last year's election on its campaign for more jobs, and it appears that structural reforms in the labour market is paying off.
But the price for getting people back to work has been a bitter pill for those happily content with drawing out monthly unemployment benefits. The financial difference between working and cashing in on unemployment is insignificant, so that many choose not to work. Many find loopholes like prolonged sickness, to enjoy a blessed status quo. But this complacency has been rudely interrupted by tough measures such as cutting down on benefit levels and payment periods. Through tax inducements, employers have been seduced to hire.
The Socialist opposition is playing coy with the achievement, saying that there are those who stand farthest from the labour market. Opposition party leader Mona Sahlin promised in her alternative budget to restore, even raise the daily unemployment payment. One wonders what's in the head of this old-fashioned Socialist. Surely, compassion through prolonged welfare dependence will not sustain a national economy that lacks productivity. Was it somewhere in the Bible that says, don't give the fish, but the hook and line to fish with?
Although the one-year achievement of the non-Socialist Alliance, particularly in job creation and job tax reduction are indeed impressive, there are some nagging questions left unanswered. Are job openings mainly in the service sector like households? Are academics who borrowed money from the state agency CSN getting jobs in their chosen fields? Or are they being re-routed to sectors that have nothing to do with their training and competence. Many times, competence has the least role to play in recruitment policies because there are employers prejudiced against higher education. In fact, there are prejudices based on racial superiority that still lurks in many recruiters' corridor.
Instead of making distinctions such as newcomer immigrants and refugees vs long-timers who cannot find work, how about differentiating between the educational levels of job applicants- vocational training, college (gymnasium), university degree, post-university degree, or university of hard knocks. It would appear that Sweden ranks pretty low when it comes to a competent manpower base, so that foreign companies are not that attracted to relocate here. What was the rank? According to a Swedish media report, 22nd place out of 33. Now, this is sad!
(Sources: Dagens Nyheter, Svenska Dagbladet, 10 Oct. 2007
Photo source: DN )
