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WORKING IN SWEDEN

How could a new skills shortage test for work permits impact foreigners in Sweden?

Sweden's government has announced their intention to introduce a skills shortage test for work permits, which would mean work permits would only be awarded to those applying for a position in a sector where there is a national shortage. How could this impact foreigners?

How could a new skills shortage test for work permits impact foreigners in Sweden?
Healthcare workers are likely to be featured as an approved profession under a possible shortage list system. Photo: Isabell Höjman/TT

What is the shortage test?

The shortage test, known as arbetsmarknadsprövning in Swedish, is a system where prospective labour migrants wanting to work in Sweden will only have their work permits approved if they are filling a position where there is a national shortage.

Sweden has had this system before. It was scrapped in 2008 by the then-Moderate government led by Fredrik Reinfeldt, a move which migration minister Anders Ygeman said had caused issues in Sweden, such as extensive labour immigration for low-qualified jobs for which there is no shortage of labour nationally.

“Deregulation has led to serious consequences for the country,” Ygeman said at a press conference on Thursday, going on to say that there “have been many warning signals over the years”.

Who will be affected?

Firstly, this would mainly affect people who are not currently working in Sweden and applying for their first work permit in the country.

The law would only affect non-EU, non-Nordic people wishing to work in Sweden. EU and Nordic citizens have the right to live and work in Sweden without having to apply for a work permit.

It’s hard to say at this stage which professions would be affected, but a look at Denmark’s version of the system, the “positive list”, may provide some insight.

Denmark’s list for those with a higher education includes architects, healthcare professionals, teachers and programmers, and their list for skilled workers includes laboratory technicians, chefs, electricians, social and healthcare assistants and hairdressers.

It’s unclear how the law could be applied to those who are already working in the country, but it could mean that you run into issues when it’s time to renew – although, it should be stressed that any change in law is unlikely to happen for at least a year and a half, if it happens at all.

READ ALSO: How will the new work permit law just passed in Sweden affect foreigners?

What do Sweden’s political parties say about the shortage test?

Unsurprisingly seeing as they scrapped it last time they were in government, the Moderates are still against the shortage test. 

The Centre Party, Liberals and Green Party are also against reintroducing the shortage test, arguing that employers are better placed to decide whether they have a labour shortage than government authorities.

The Christian Democrats, Sweden Democrats and Left Party are backing the Social Democrats, with all three in favour of reintroducing the shortage test, but for different reasons.

The Left Party argues that it will prevent the exploitation of foreign workers, whereas the Christian Democrats and Sweden Democrats believe it should be introduced for all positions with a salary of less than 35,000 kronor per month, with no shortage requirement on positions with a higher salary.

When will it be introduced?

It may not be introduced at all. So far, the government have said that they plan to investigate the reintroduction of arbetsmarknadsprövning, but the investigation won’t start until the summer, after which it is expected to take at least a year.

That means that any change in law is unlikely to happen before the second half of 2023, making the return of the test reliant on the Social Democrats winning September’s election.

If the opposition parties were to win September’s election, it is even less likely that this law would be introduced. A more likely scenario in that case would be the introduction of a lower salary cap on work permits, meaning that applicants would have to secure a salary above a certain limit before they can be granted a permit.

It’s unclear what this salary would be, although the Moderates have previously argued it should be at least 85 percent of Sweden’s median salary, which would place the limit at aroung 27,500 kronor a month.

The Sweden Democrats and Christian Democrats are in favour of a higher cap, which would require prospective immigrants to earn at least 35,000 kronor to work in Sweden.

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WORK PERMITS

Business leaders: Work permit threshold ‘has no place in Swedish labour model’

Sweden's main business group has attacked a proposal to exempt some jobs from a new minimum salary for work permits, saying it is "unacceptable" political interference in the labour model and risks seriously affecting national competitiveness.

Business leaders: Work permit threshold 'has no place in Swedish labour model'

The Confederation of Swedish Enterprise said in its response to the government’s consultation, submitted on Thursday afternoon, that it not only opposed the proposal to raise the minimum salary for a work permit to Sweden’s median salary (currently 34,200 kronor a month), but also opposed plans to exempt some professions from the higher threshold. 

“To place barriers in the way of talent recruitment by bringing in a highly political salary threshold in combination with labour market testing is going to worsen the conditions for Swedish enterprise in both the short and the long term, and risks leading to increased fraud and abuse,” the employer’s group said.   

The group, which represents businesses across most of Sweden’s industries, has been critical of the plans to further raise the salary threshold for work permits from the start, with the organisation’s deputy director general, Karin Johansson, telling The Local this week that more than half of those affected by the higher threshold would be skilled graduate recruits Swedish businesses sorely need.   

But the fact that it has not only rejected the higher salary threshold, but also the proposed system of exemptions, will nonetheless come as a blow to Sweden’s government, and particular the Moderate Party led by Prime Minister Ulf Kristersson, which has long claimed to be the party of business. 

The confederation complained that the model proposed in the conclusions of the government inquiry published in February would give the government and political parties a powerful new role in setting salary conditions, undermining the country’s treasured system of collective bargaining. 

The proposal for the higher salary threshold, was, the confederation argued, “wrong in principle” and did “not belong in the Swedish labour market”. 

“That the state should decide on the minimum salary for certain foreign employees is an unacceptable interference in the Swedish collective bargaining model, where the parties [unions and employers] weigh up various needs and interested in negotiations,” it wrote. 

In addition, the confederation argued that the proposed system where the Sweden Public Employment Service and the Migration Agency draw up a list of exempted jobs, which would then be vetted by the government, signified the return of the old system of labour market testing which was abolished in 2008.

“The government agency-based labour market testing was scrapped because of it ineffectiveness, and because it was unreasonable that government agencies were given influence over company recruitment,” the confederation wrote. 

“The system meant long handling times, arbitrariness, uncertainty for employers and employees, as well as an indirect union veto,” it added. “Nothing suggests it will work better this time.” 

For a start, it said, the Public Employment Service’s list of professions was inexact and outdated, with only 179 professions listed, compared to 430 monitored by Statistics Sweden. This was particularly the case for new skilled roles within industries like battery manufacturing. 

“New professions or smaller professions are not caught up by the classification system, which among other things is going to make it harder to recruit in sectors which are important for the green industrial transition,” the confederation warned. 

Rather than implement the proposals outlined in the inquiry’s conclusions, it concluded, the government should instead begin work on a new national strategy for international recruitment. 

“Sweden instead needs a national strategy aimed at creating better conditions for Swedish businesses to be able to attract, recruit and retain international competence.”

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