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The government released in its fall budget that employers’ contributions for young people should be temporarily reduced. The proposal is justified by the fact that Sweden, as a result of the covid-19 outbreak, is in its worst crisis since the early 1990s. The pandemic hits hard on entrepreneurs who are active in intensive service industries. in youth, such as the retail and hospitality industry. The initial jobs will now be initial jobs. The result is accelerating unemployment among the young and foreign-born.
Despite the pandemic’s grip on employers, several bourgeois writers are furious at the proposal to reduce the employer’s contribution to young people. The political opposition also appears to be considering reaching an agreement with the Left Party to stop the reduction. The initiatives are based on the perception that the previous reduction in 2007 created few jobs and that the “cost” per job amounted to more than 1 million SEK. Therefore, the reform is considered ineffective and costly.
