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Sweden is helping employers who have young workers

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Staff writer ▼ | July 8, 2013
Sweden is helping young workers to be better prepared for the job market with its Vocational Introduction Employment scheme that combines work and training experience.
Sweden young workers
Sweden young workersSweden is helping young workers to be better prepared for the job market with its Vocational Introduction Employment scheme that combines work and training experience.


The European Commission has authorised a Swedish scheme to subsidise combined work-and-training contracts for young workers aged 15 to 24 (Vocational Introduction Employment) under EU State aid rules. The measure will contribute to the fight against youth unemployment.

The measure is part of the Swedish government's efforts to reduce youth unemployment levels. In recent years, the social partners have pioneered Vocational Introduction Employments (VIE) on a small scale, combining practical work with on-the-job training. Similar apprenticeship-style models exist in other Member States but have so far not been common on the Swedish job market.

Sweden believes that these contracts can provide an effective tool to ease the transition from school to working life and plans to provide incentives for a broader use of VIE by means of public subsidies.

The envisaged state aid would consist of a wage subsidy in the form of a tax credit for the employer, combined with a direct grant towards the cost of training. The measure is initially notified for a period of three years (2014-2016). It will only apply to employers bound by collective agreements with the trade unions.

"Fighting youth unemployment is a top priority of the EU. This scheme explores new ways of getting young people on to the job market without unduly distorting competition," said Commission Vice President in charge of competition policy, Joaquin Almunia."


 

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