Balancing ideological commitment and political reality for local job creation- a Swedish dilemma

Abstract

Public social services in Sweden are in a highly transitional phase, reflecting new economic constraints and a change of policy regime. Transformations of the public social services sector have included market-oriented methods of management such as separation of purchaser and provider functions, contracting and intra public sector competition. The objective of the reforms has been to enhance economic efficiency at the micro-level of production. In addition, substantial cutbacks have been made in the funding of social services. One of the results of these changes is a reduction of jobs in the social services sector, a development which runs contrary to stated government objectives with respect to employment. To maintain local employment levels, a number of programmes have been initiated, both at local and central level. The situation can thus be described as one where local governments are forced to lay off regular workers within the social services sector, only to rehire them later in conjuction with job creation programmes. The paper provides an overview of this slightly paradoxical process, brought about by the clash of political objectives in one policy area (public social services) with those of another (employment). In Sweden, moreover, welfare policy goals with respect to equity, manifested in a commitment to public provision of social goods, prevent this paradox (and resulting excess demand for social services) from being solved by the expansion of a private market for social services. The net result is a loss of regular jobs and a growing gap between demand for and supply of social services. In addition, job creation programmes have generally failed to meet the expectations of trade unions and workers for "real jobs" with fair and equal rights, a failure that may bring about the establishment of a dual labour market also within the public service sector.