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UNEMPLOYMENT

Sweden allocates billions to fight unemployment

The Swedish government has promised to find 8.4 billion kronor ($1.19 billion) to fund education and training measures designed to combat growing unemployment.

The four Alliance government parties have announced after talks that 4.5 billion kronor will be allocated for an additional 23,000 training places in 2010 and 2011, and a further 3.9 billion kronor on 54,000 places in various employment measure schemes for the unemployed.

Around two billion kronor of the funds will be spent on creating 40,000 places in a new activation programme which within state, county council and non-profit organizations is being called “Lyft”(Lift).

“Lyft” should be made available for a maximum of six months for people currently engaged within the work and development guarantee, and for three months for young unemployed.

The initiative will be focused on sectors such as the environment, forestry, cultural heritage, health and welfare and schools.

The Swedish Public Employment Service (Arbetsförmedlingen) will be given an additional 600 million kronor.

620 million kronor will be used to create 2,000 new places within coaching, work experience and practical skills development. 225 million will fund 1,000 new places in labour market training schemes.

The package of measures also includes a specific investment for Folk High Schools which will cover 1,000 training places and will cost 51 million kronor.

Two billion kronor will underwrite 10,000 new places within both academic and vocational education at adult education colleges.

440 million kronor has been allocated to 3,000 new places within vocational high school from the autumn of 2010 and 2011. A total of 6,000 people will therefore be able to undergo courses.

Two billion kronor will be spent on the creation of new university places in 2010 and 2011. The money equates to a 20 percent increase in university and university college intake.

Education minister Jan Björklund concedes that the government parties were critical of the expansion of places while in opposition but pointed out that their initiative promises more money per student.

“It is better that the young study than loaf about in times of unemployment,” Björklund said.

“There is a risk that a third of the unemployed get stuck and remain in some form of unemployment,” the prime minister Fredrik Reinfeldt told a press conference in Stockholm on Wednesday.

“The core strategy to meet this is with education, often vocational, and active labour market policies.”

Fredrik Reinfeldt denied that the government is massaging unemployment statistics by shifting people to labour market measures – a charge often levied at the previous Social Democrat government.

“What we criticized the Social Democrats for is that they had their comprehensive labour market measures during economic booms. They did not withdraw them when the good times returned. People were then just left sitting at the school desk.”

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BUSINESS

Unemployment in France falls slightly despite the lockdown

Unemployment in France has fallen slightly, despite the ongoing ravages of the health crisis and consequent lockdown, latest statistics show.

Unemployment in France falls slightly despite the lockdown
Photo: Stephane du Sakatin/AFP

The number of unemployed job seekers in mainland France fell by 0.4 percent in the first three months of 2021, according to figures published by the French Ministry of Labour on Tuesday.

There were 3,560,600 unemployed registered at the Pôle Emploi (unemployment office), 12,200 fewer than during the last three months of 2020.

This follows a 2.7 percent fall in the final three months of 2020 – but the rate is still up 6.8 percent compared with the first three months of 2020, before Europe began to feel the economic impact of the Covid pandemic.

Currently all ‘non essential’ shops in France have been closed since April 3rd, while bars, restaurants, cafés, gyms, cinemas, theatres, museums and tourist sites have been closed since October 2020.

Despite the fall the total number of job seekers, the number of people who were in work but with reduced hours was up by 0.8 percent at the start of 2021, to 2,156,300.

That means that in total 5,716,900 people in mainland France were registered with Pôle emploi during this period, an increase of 4.9 percent compared with a year ago.

“Over the course of 2020, in one year, unemployment rose by 8 percent. This is obviously a lot, but we must remember that during the crisis of 2008-2009, unemployment leapt by 25 percent, so we can see that the government assistance is working,” Minister of Labour Élisabeth Borne told BFMTV on Tuesday.

The French government has put together a huge package of economic aid to try and mitigate the effects of the repeated lockdowns, from chômage partiel (furlough) schemes for employees to aid packages for business owners and the self-employed. But many small retailers have been hit hard by the three periods of closure for non-essential shops, while the tourist, leisure and hospitality sectors have also had a devastating year.

The economic downturn linked to the pandemic has disproportionately affected young people in France.  Across all categories of job seekers (unemployed and with reduced hours), the latest figures show a rise of 7.1 percent in a year for those under 25, compared to 4.5 percent for the 25-29 age range, and 4.8 percent for those aged 50 and over.

Men are also more likely to have signed up to Pôle emploi, with a 6.1 percent increase on last year, compared to a 3.8 percent increase among women.

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