‘Labour market inclusion’ has been a commonly used term during Sweden’s Presidency of the EU. Issues related to ways of preventing long-term sick leave and stopping people from being ‘locked into’ social insurance systems have been a priority during the autumn.

The Employment, Social Policy, Health and Consumer Affairs Council (EPSCO) is responsible for the issue of labour market inclusion in the EU. Discussions have focused on measures in labour market and social insurance polices to better meet the effects of the economic crisis and promote the long-term EU goal of a high growth rate and full employment. When unemployment rises, there is a risk that increasing numbers of people will be excluded which places strong demands on an active policy to prevent this and make it easier for people to take part in the labour market to the best of their ability.

Meeting in Jönköping inspired idea

At the informal ministerial meeting in Jönköping on 6–9 July, hosted by Sweden’s Minister for Employment Sven Otto Littorin and Minister for Social Security Cristina Husmark Pehrsson, the Member States shared their experiences and examples of best practice in this area. This sparked an idea by Sven Otto Littorin and EU Commissioner Vladimir Spidla to collect in one document the best and most innovative labour market measures taken by the Member States to tackle the effects of a sharp economic downturn.

Discussions were also held on continued work at EU level. It became clear that the Swedish Presidency had broad support from both Member States and EU institutions for holding further discussions on an active social insurance and labour market policy in EU work. These should aim at the discussions on the new EU strategy for growth and jobs.

“Since greater labour market participation is the basis of welfare and growth, we must have a labour market that is open to all. I am therefore very satisfied with the broad support that an active social insurance policy received. Encouraging and supporting people to take part in working life is essential to avoid permanent exclusion,” says Ms Husmark Pehrsson.

Littorin and Spidla presented text

At the end of October researchers, politicians and officials from the EU countries gathered in Stockholm for further discussions. The result of Mr Littorin’s and Mr Spidla’s idea from Jönköping was presented at the EPSCO meeting in Brussels a couple of months later, in the form of the document ‘Recovering from the Crisis –27 ways of tackling the employment challenge’. All 27 Member States have taken part and contributed examples of measures. The Council adopted conclusions on the creation of more inclusive labour markets and how the labour market is to recover from the economic and financial crisis.

Both the outcome of the discussions and the conclusions were passed on to the heads of state and government at the European Council on 10–11 December. The Council conclusions will be included in the work to formulate the next EU strategy for growth and jobs, which is to enter into force when the current Lisbon Strategy is phased out in 2010.

The economic crisis is now coming to an end, but the challenges for Europe’s labour markets and social insurance systems remain.