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17 September 2024

Swedish, Nordic and EU Labour Market Digitalisation Policies: Current Trends and Future Insights

In the first half of 2024, a lot has happened in digitalisation and the labour market, both nationally and at EU level. AI is impacting all sectors, especially areas within career transitions and education. By year-end, the government will present a new STEM strategy to attract more individuals in science, technology, engineering, and mathematics. Internationally, Sweden is enhancing Nordic cooperation and identifying key technologies to boost its competitiveness. This article summarises the latest insights in the field.

At the EU level, a new European open-source giant is being formed, while Sweden is generally advancing in digital infrastructure. The European Open Source Consortium is a new strategic alliance aimed at helping large organizations use open-source software for digital transformation. In Sweden, a public inquiry proposes measures for easier sharing of health data to ensure efficient and secure healthcare. Additionally, the government has assigned two new tasks: the Swedish Research Council will propose how to develop Sweden’s e-infrastructure for research, and the Agency for Digital Government (Digg) will advance Sweden's digital infrastructure, Ena, by 2030. JobTech Development continues to provide expertise and technical components in its focus areas: personal data for data portability, linked data, and taxonomy.

Sweden and EU

  • A New EU Directive for Digital Platform Workers strengthens their rights through the EU's platform Directive, which was advanced during the Swedish EU Presidency. The JobTech unit, via the JobTech Development platform, has explored the gig economy for several years and proposed improvements for developing digital infrastructures with a focus on individual data.
  • Qualifications and Micro-credentials. Cedefop's new tools for European qualifications (EQF) and micro-credentials in vocational education and training promotes transparency of qualifications and have an impact on Europass documents such as the qualification supplements and descriptions of learning outcomes. Common EU guidelines will contribute to brief, learning- outcomes-based descriptions of all qualifications. Micro-credentials increase employment opportunities and benefit both the individual and society.
  • Salary Inquiries Will Soon Be Banned. A new EU directive will soon make it illegal for employers to ask about salary. This regulation will be adopted into a Swedish law by 2026 at the latest.

Labour Market

  • The Project “Kompetenspasset”. The EU Council's recommendation on micro-credentials has driven the development and testing of a common Swedish model for micro-credentials. The project has focused on three target areas: technical development, method development, and testing and evaluation, addressing structural, technical, and user-related objectives. The aim is to create a coherent and accessible structure for documenting and recognising learning and skills. The JobTech unit and JobTech Development have contributed with insights and texts to the final report.
  • Microsoft Makes Major Investment in Sweden - undertakes its largest investment ever in Sweden of 33.7 billion SEK in Swedish cloud and AI infrastructure.
  • New Government Assignment on Attracting International Talent. The Swedish Agency for Economic and Regional Growth, together with nine other agencies including Arbetsförmedlingen and Business Sweden, will identify and address challenges related to attracting, establishing, and retaining highly skilled international talent and other foreign workers.
  • AI, Education, and the Labour Market. The Swedish Higher Education Authority (UKÄ), in collaboration with other stakeholders, has been assigned by the government to analyse how artificial intelligence might impact higher education programs in relation to the future skill needs of the labour market.

Education and Career Change

  • Career Transition and Study Retraining Grant. The Legal, Financial and Administrative Services Agency (Kammarkollegiet), in consultation with the Institute for Labour Market and Educational Policy Evaluation, will gather information and provide a status report to analyse the career transition and retraining grant (in Swedish: omställningsstudiestödet).
  • New Measures to Strengthen the STEM Field. By the end of 2024, the government is expected to present a STEM strategy aimed at increasing the number of individuals in Sweden with strong knowledge in science, technology, engineering, and mathematics. Several measures have already been implemented, but the government has now decided on additional initiatives. This work is particularly important to achieve the goals in the Swedish national roadmap for the EU's Digital Decade. According to the latest EU Commission report, Sweden plans to allocate a total budget (excluding private investments) of approximately 2.8 billion euros (0.5% of GDP) to achieve its digital transition.
  • Development of Higher Education Programs. An investigator is tasked to propose ways to develop higher education programs to better align with the changing labour market. Career Transition and Study Retraining Grant is being expanded annually and is expected to be fully operational by 2026, when approximately 44,000 individuals are anticipated to benefit from it. Another assignment to be investigated is a special compensation model for education related to career transitions and further training for professionals (U 2024:C).

International Cooperation

  • Increased Nordic Integration and Cooperation. Six Months in the Nordic Council of Ministers. In a report from the Nordic Council of Ministers on lifelong learning for the future labour market, with a focus on digitalisation and green transition, an analysis is conducted on how the education systems in the Nordic countries, including Greenland, the Faroe Islands, and Åland, can be strengthened and adapted. The results highlight the role of lifelong learning in addressing labour market challenges and recommend increased cooperation between educational institutions, businesses, and governments, greater flexibility in educational programs, enhanced employer engagement, expanded validation, and improved Nordic collaboration.
  • Responsible Internationalization. The Swedish Council for Higher Education, the Swedish Research Council, and Sweden’s Innovation Agency (Vinnova) have jointly worked on the government assignment to promote responsible internationalization in education, research, and innovation cooperation. These efforts are essential for the development of new knowledge and technologies.
  • The Swedish Labour Market Model. The Swedish National Mediation Office is to participate in a project aimed at increasing international understanding of the Swedish labour market model from a Nordic perspective. The project will be carried out by the Organisation for Economic Co-operation and Development (OECD).
  • Sweden to Identify Strategically Important Technologies. As part of a government assignment, Vinnova, in cooperation with relevant stakeholders, is to prepare a knowledge base for future initiatives aimed at strengthening Sweden's competitiveness and encouraging industry investments in research and development.

More Information in the Field