Towards refugee labour market integration: the case of Sweden

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Örebro University

School of Humanities, Education and Social Sciences

Social Analysis

Towards refugee labour market integration: the case

of Sweden.

Social Analysis Second Cycle

Independent project, 30 credits, 2020

Author: Rockiner Kenneth Simoonga.

Supervisor: Dr. Natalia Krzyzanowska

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i Acknowledgements

I would like to acknowledge the help and support rendered to me throughout the duration of this study. Special thanks go to my supervisor Dr. Natalia Krzyzanowska Associate Professor for her unwavering supervision and encouragement throughout my thesis writing.

Other special thanks go to Professor Christopher Simoonga for his enormous support in all forms.

I am also grateful to Mr. Mubita Aurick, Mr. Simunkombwe Prince, Miss Hambwela Kalinda and Mr. Malukula Mbali for their encouragement and support.

Finally, special thanks go to all the refugees in the Swedish labour market especially those who dedicated their time in responding to my questionnaire.

I salute you all who made this study a success.

Rockiner Kenneth Simoonga Email; simoongakeny@gmail.com

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ii Abstract

The Swedish integration policy has for a considerable time focused on the labour market integration in which different actors such as the Swedish Public Employment Service, Migration Agency, Municipalities, counties as well as non-governmental organisations and the churches come to play different roles in refugee integration. Refugees are introduced to the Swedish labour market and have their skills and educational qualifications validated by the Swedish Public Employment Service in preparation for the labour market. However, amidst this welcoming gesture towards refugees by the Swedish government, there is a growth in the anti-immigrant movements in Sweden posing a threat to refugee employability. The aim of this thesis, therefore, was to examine the major successes and challenges of the refugee integration policy in the Swedish labour market in relation to refugee employability.

This was a qualitative study in which both primary and secondary data sources were used. A snowball strategy was used in identifying 8 respondents. The data was collected using an open ended survey and thematic analysis was eventually conducted.

The study has revealed that the Swedish Integration Policy to a lesser extent helps refugees in finding employment in the Swedish labour market despite addressing language challenges and validation of skills and educational qualifications of the refugees. Based on secondary and primary data, many respondents found their employment through their social networks. It can therefore be concluded that social networks play the main role in refugee employability in the Swedish labour market which is often against policy and formal expectations. Refugees’ labour market integration opportunities are also determined bynon -policy factors including stereotypes and prejudice.

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The term migration relates to the movement of people from one place to another with the intention of settling their lives, permanently or temporarily, in a new location. The process is allied with the complicated social, legal, economic, psychological, demographic and cultural struggles and seems to be the fate of the world since we live in times of biggest migration in human’s history1

this is evidenced in the UN report, that “the number of international migrants globally reached an estimated 272 million in 2019, an increase of 51 million since 2010. Currently, international migrants comprise of 3.5 per cent of the global population, compared to 2.8 per cent in the year 2000”2.

Migration has been a fact of life for a long period of time and can be traced back to the “earliest periods of human history” both numerically and proportionally and it has continued to increase at a faster rate (World Migration Report 2020, p.19). Shows (1975) define migration as “the relatively permanent movement of persons over a significant distance”3

. This definition denotes two dimensions of migration which are: spatial (distance) and time (duration of residence). Furthermore, Pieter (1999, p.1) defines migration as “the crossing of boundaries of a predefined spatial unit by one or more persons involved in a change of residence”. Nonetheless, many migrants do not cross borders and instead remain within their country of origin and simply change their abode - during the so-called ‘internal migration’4 – with statistics showing an estimated 740 million internal migrants worldwide in 20095.

Contemporary migration is seen as an international movement of people who want to settle their lives in different states. As such migrants can be in several forms and can only be differentiated

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https://www.unhcr.org/3ebf9bab0.pdf . Retrieved 2020-02-16. This has been the ever recorded highest migration

followed the by one mentioned above and the current one exceeds the first mass migration to this link.

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https://www.un.org/en/development/desa/population/migration/data/estimates2/estimates19.asp 3

Migration has been in existence for a longtime, hence the show's definition of migration is important as it helps show some changes that have been made in terms of defining migration

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This form of migration is closely related to internal displacement, however displacement refers mostly to situations where an individual has no choice but to move, either temporarily or permanently, within or across borders. This can be a result of various reasons such as severe floods or political unrest in the region. Those who cross borders are of particular interest in this paper to shape the way for refugee introduction.

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on the basis of the reasons behind migration, which can either be voluntary or involuntary6 (forced).

The causes of migration are indeed quite complex and numerous yet can be categorized generally into push7 and pull factors. Pull factors are associated with destination country advantages (quality of life, stable political situation, wide access to generous social support, low unemployment) whereas push factors are forces – among others of political, economic, ethnic, religious background - which push people out of their country of origin. The push factors, in fact, are of particular interest to this thesis, as they lie at the core of refugee condition (Tamas, 2004).

The complexity of migration is furthermore weaved into “political and ethnic conflicts, human rights violations, lack of democracy and human security compounded with social and cultural factors, economic reasons such as income differences and unemployment, environmental, geographic and historical factors, demographic and health conditions” (Tamas, 2004, p.16). However, regardless of the reasons for migration, migrants can become an additional cost to the welfare state of the host community as there can be sudden influx in the labour market which may potentially have influence on, e.g., the decrease of wages (Tamas, 2004). The political conflicts, persecutions, human rights violations, lack of democracy, human security and economic redistribution are among the most common reasons behind the influx of refugees in contemporary world.

Generally, there has been an ongoing increase in the number of refugees in the last decade worldwide. This has especially been the case after 2015 when many asylum-seekers- eventually received refugee status – migrated to Europe in the aftermath of many, often long-term conflicts in Africa and the Middle East. In 2016, about 5.2 million refugees reached Europe from various countries that were experiencing wars and persecution, whilst about 2000 of them lost their lives in the process (United Nations High Commission for Refugees, 2020). Globally, there were about 25.9 million refugees in 2018 (Amnesty International, 2018).

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The ones that leave their country involuntarily are of particular interest to this thesis because refugees fall into this category of migrants.

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Push factors are reasons why people would want to leave their country of origin. They are of particular interest as they shape the introduction of refugees as the main target of this thesis.

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Refugees are a special category of migrants, different from other migrants in that they cannot return to their country of origin safely, the options which is otherwise enjoyed by the majority of other migrants (Dzięglewski, 2016). According to the United Nation 1951 Refugee Convention, a refugee is any individual who "owing to well-founded fear of being persecuted for reasons of race, religion, nationality, membership of a particular social group or political opinion, is outside the country of his nationality and is unable or, owing to such fear, is unwilling to avail himself of the protection of that country; or who, not having a nationality and being outside the country of his former habitual residence as a result of such events, is unable or, owing to such fear, is unwilling to return to it”8

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Based on the 1951 definition, the UNHCR (2011) recognizes any person as refugee if this person is "outside his/her country of nationality or habitual residence and unable to return there owing to serious and indiscriminate threats to life, physical integrity or freedom resulting from generalized violence or events seriously disturbing public order”9

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Sweden is internationally recognized as one of the most refugee friendly countries in Europe. This perception has been won by Sweden over decades of refugee-friendly humanitarian actions at home and abroad, and especially due to generous in-country policies and their efficiency in handling refugees and providing comprehensive aid. Sweden has been receiving and granting residency permits to asylum seekers from all over the world, in particular, those from war zones such as, most recently, Syria, Afghanistan and Iraq. During the 2015/2016 so-called ‘refugee crisis’, Sweden was exceptionally welcoming towards asylum-seekers and later refugees, with the national Swedish immigration agency (Migrationsverket) recording between 6000 and 7000 new refugee applications just a week before the government came in to announce that they were capable of welcoming more than 150 000 asylum seekers within 2016. In the year 2019, the Swedish Migrationsverket received 24 569 applications for asylum seekers of which close to half (12 383) of the applicants were granted residency permits. Such generosity made Sweden rise to the 9th position10 in the world as one of the most welcoming countries towards refugees.

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https://www.who.int/migrants/about/definitions/en/ 9

Office of the United High Commissioner for Refugees (UNHCR) 2011,p.19 10

This information is based on the study carried in the US World and News Report's best country survey in the world on immigration.

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While awaiting outcome of asylum applications, refugees in Sweden can receive support from a number of voluntary organizations such as sport clubs, cultural associations, humanitarian associations, churches or mosques that arrange various activities aimed at equipping the asylum seekers with important information about Swedish society. In particular the attempt to access the labour market and the process of acquiring the Swedish language skills/proficiency is deemed an important aspect during this phase. Those who want to work can start looking for employment upon receiving the LMA (the Act on the Reception of Asylum Seekers) card11 following submission of asylum application. Once the refugee status has been granted a residency permit is issued as proof of right to live, work and have access to all services offered in Sweden such as medical care12.

Labour market is cardinal to refugee integration in the host community as refugees can find either formal or informal work in order to become self-sustained economically. Labour market provides a place to find employment by refugees and in the process enhances socialization which is cardinal to integration. By virtual of having work a refugees’ self-esteem is boosted and feels more welcomed particularly when a source of income is guaranteed, also given the traumatic events a refugee underwent, work helps them redefine their lives. Therefore, employment is an important aspect of social and economic inclusion of refugees. However, there can be tension in the labour market between refugees and natives as natives feel that refugees are taking up their jobs. This tension can reduce refugee employability and eventually affect their integration in the labour market of the host community. Therefore when the labour market laws take refugees into consideration in terms of their protection during the job search and when work is found is of great importance to refugee labour market integration. Therefore, finding a job on the labour market is a huge burden that refugees face, a challenge that Sweden has taken into consideration by coming up with a refugee integration policy.

However, in recent years, there has been a growing trend of anti-immigrant attitudes in both public discourses and political practice in the western world and Sweden in particular. Notably, anti-migrant attitudes also influence and support the rise of power of the populist parties in the

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LMA card is a plastic card that shows that the person is an asylum seeker with their photo on it.

https://www.migrationsverket.se/Privatpersoner/Skydd-och-asyl-i-Sverige/Medan-du-vantar/LMA-kort.html 12

https://www.migrationsverket.se/English/Private-individuals/Protection-and-asylum-in-Sweden/When-you-have- received-a-decision-on-your-asylum-application/If-you-are-allowed-to-stay/Residence-permits-for-those-granted-refugee-status.html

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majority of European countries. In Germany, the right-wing populist Alternative für Deutschland (AfD) gained by 7.9 percent votes in 2017 elections. Equally during the French presidential election, the same case can be noted with the populist movement. In Poland the anti-migrants discourses were eminent victory factor of the populist right wing party Law and Justice (cf Krzyżanowska and Krzyżanowski, 2018). Sweden, too, has observed a similar trend with the Sweden Democrats (SD) increasing their electoral share in the 2018 elections to 17.5 percent of votes, thus making claims of the rise of anti-migrant attitudes in Sweden ever more legitimate. The anti-immigrant movements are thriving mostly due to citizens’ fears of refugees and the anti-immigrant messages spread by traditional and online media and is focused on protection of the labour market through closing up borders. Amidst the rise of the populist movements in Sweden, there is an integration policy aimed at integrating refugees in the Swedish labour market. These anti-immigrant movements’ growth poses tension and threat to refugee employability in the Swedish labour market which eventually leads to refugee labour market integration. Once a refugee gets employment in the Swedish labour market then integration chances are enhanced because a refugee has something to look forward to and can easily learn the Swedish language and easily socialize.

Realizing that the refugee integration process has so many dimensions, this thesis takes on the socio-economic dimension of refugee integration into the Swedish labour market. The purpose is to examine the major successes and challenges of the refugee integration policies in the Swedish labour market. With the overall objective of examining how refugee integration policy in Sweden facilitates employability of refugees, this thesis sets out to assess the socio-economic dimensions of integration given the importance of socialization and work which can give refugees a sense of independence and identity in the host community. It is being guided by the following research questions;

1. What are the individual factors that have an impact on employability of refugees in Sweden?

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6 1. THEORETICAL OVERVIEW

This section is focused on contemporary theory of migration studies which can be seen as the landscape in which to locate the later analysis of integration of refugees in the Swedish labour market eventually presented in chapter six. Each of the theories below presents a different set of assumptions with regard to refugee integration. This is to show that there is no definite theory that can wholly explain the integration process, mainly because integration is a highly complex and context-dependent process. Also, while some theories may be true to specific conditions, situations and places, therefore, understanding integration through a pool of theories can be more satisfying as different theories bring different views. The Assimilation theory will be used as it is important in elaborating how refugees come to assimilate in all forms including language with the locals over a length period spent in the host community. As well as Van Tubergen’s theories; human capital theory, structural opportunity theory, social capital theory and prejudice theory, as they offer particular explanations to refugee integration as well as aspects that should be addressed for a successful refugee integration in the host community through employment. 1.1 Early theorization: Assimilation Theory

Research on how to integrate refugees started around 1880-1920 just after the first great migration of people to the United States. During this period, researchers such as Park came up with the idea of assimilation defined as “a process of interpretation and fusion in which persons and groups acquire the memories, sentiments, and attitudes of other persons and groups and, by sharing their experience and history, are incorporated with them in a common cultural life” (Park and Burgess [1921] 1969, p.735). There are two types of assimilation i.e.: structural assimilation (engagement into primary groups, institutions etc.) and identificational assimilation (taking sense of the host society values and norms of “people-hood”) “Once structural assimilation has occurred, either simultaneously or subsequent to acculturation, all other types of assimilation (intermarriages, erosion of discrimination or absence of power differentials etc.)” will naturally follow thereby promoting integration (Gordon 1964, p. 81).

Parks also suggests using the assimilation theory that with time refugees would learn to assimilate and adapt in the host community. Warner and Srole (1945) backed the idea of assimilation by Park in which they argued that succession of generations is a driver to successful

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integration in that as generations will come, refugees would be able to internalize the host community way of life and hence assimilate. Assimilation theory has argued that assimilating processes must be supported by economic and socio-cultural integration in the host community. A study done by Chiswick and Hurst (2000) suggested that refugees at the beginning of their life in the host society were often unemployed as compared to the natives but after some time the differences between refugees and representatives of host society in terms of employment tends to reduce. This process and the eventual equalization of labour chances are seen as results of integration on the basis of assimilation acquired during a long period of living in the host community. Therefore, this theory is important to this thesis as it adds that with time refugees can integrate in the host community by assimilation, in this case, refugees can assimilate with the locals hence promote refugee employability in the Swedish labour market.

Today, among many approaches to integration, Van Tubergen’s classification – distinguishing four specific conceptions and theories - can be used to understand refugee integration. Van Tubergen theories are capable of explaining integration of refugees at a macro level, although there is no dominant theory that can explain entirely the issues relevant to problems with socio-economic of refugees’ integration (Van Tubergen, 2006). These four theories include: human capital theory, structural opportunity theory, social capital theory and prejudice theory. However only two (human capital theory and social capital theory) of his theories are of great relevance to this thesis about refugee labour market integration as they argue that refugees need some form of capital in order for them to integrate well in the labour market, capital such as qualification, skills acquisition capabilities as well as social networks as such only these two will be elaborated at length as they are deemed more relevant to understanding the employability of refugees. 1.2. The Human Capital Theory

The human capital theory was developed by Theodore W. Schultz, Jackob Mincer and Garry Becker over the 1950s and 1960s and combined the socio-economic approach towards differences in access to resources of capital and income in relation to skills, education and knowledge - which were seen as a form of investment. This theory also provides a new way of looking at the labour market (Becker 2011, p. xiii), especially in relation to individual’s investments in education, skills acquisition but also with regard to inequalities in the labour

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market (ibid.). Within inequalities in the labour market, we can locate refugees’ integration differences. The theory has two assumptions; “(1) people’s life-chances depend on their human capital, and (2) people are aware of the relationship between individual skills and their life-chances and therefore rationally invest in their own human capital” (Van Tubergen 2006, p.15). Van Tubergen argued that when people expect that the “future material and financial benefits” are far much better than the present situation people are forced to invest in themselves in terms of education and skills acquiring in the process of integration. The human capital resources hence have major influence on refugees’ employability on the labour market. In other words, a person’s future opportunities (employability) are highly dependent on an individual’s capital, this capital includes skills, experiences, qualifications as well as cultural characteristics (Hosseini-Kaladjahi 1997, p. 26).

Becker (1964) argues that human capital theory has been successful in explaining refugees' labour market participation in the host community. The human capital economists believe that the differences in labour market integration among the refugees can be owed to disparities in peoples’ human capital (Hosseini-Kaladjahi 1997, p.26). This theory argues that refugees tend to be in worse economic position than natives for three main reasons: 1) they have less human capital that is in accordance with the host country specific human capital required; 2) they have less knowledge of the host language; and 3) their previous experience is devalued in the host country (Van Tubergen 2006, p.16 and Anger, 2008). Furthermore, research shows that obtaining any general education and knowing the host communities' language can enhance refugees’ economic integration and sociocultural integration, as they are considered, as major human capital for refugees in the host community (Van Tubergen 2006, p.16). Chiswick (2008) argues that the acquisition of the human capital depends also on the period of time during which refugees will stay in the host community, assuming that the longer the period the more it will allow refugees to acquire the local language in many cases seen as a precondition of accumulating human capital, needed to foster employability in the host community.

1.3. Social Capital Theory

This theory is closely related to human capital theory as social capital enhances an individual’s capacity upon which human capital is cemented. Social capital theory gives much importance to the refugees’ social integration in host society. Social capital is generally based on social

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relationships: hence, while it is intangible it can only be seen when a specific social relationship changes (Coleman 1990, p.304). These relationships can be in many dimensions, Putman (2000) has singled out two most important ones which are “bonding and bridging” (as cited in Magnusson, 2014). These social relationships are cardinal in life as they can have an impact on individuals’ productivity and employability in society. Coleman further argues that social capital can be applied to a broader society which can “increase cooperation, mutual support, trust and institutional effectiveness” (Putnam 2000, p.22). The way a refugee is performing in the host society is a reflection of the networks that they may have, while these circles play an important role in integration (ibid: 33). This theory therefore has been instrumental in explaining refugee employability and how they tend to differ in their integration economically in the host community.

This theory rests on four assumptions and argues that the more social capital a refugee have will increase: 1) the willingness of other people to offer help (solidarity), 2) opportunities for other people to offer help (structural opportunities), 3) the resources available to people (human capital) and 4) the more social capital people have the better their life-chances” (Van Tubergen 2006, p.33) in the host community. Therefore, when a refugee have these social resources such as social networks the chances of being employed and eventually integrated in a given society become much higher.

2.0. LITERATURE REVIEW

Recognising that integration is a highly contested topic in the field of refugee research and refugee policy, this chapter aims to provide an overview of the available literature around integration of refugees in Sweden, it is limited to studies conducted within Sweden. Thus, this chapter will provide the theoretical background necessary to analyse the research questions related to refugee integration in the Swedish labour market. Integration according to Penninx (2003) is seen as the processes by which refugees become accepted into society, both as individuals and as groups. This definition of integration is deliberately left open, because the particular requirements for acceptance by a receiving society vary greatly from country to country. The openness of this definition also reflects the fact that the responsibility for

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integration rests not with just one particular group, but rather with many actors including refugees themselves, the host government, institutions, and communities”13. One of the most important areas of refugee integration is the labour market through employment necessary for economic independence and also the labour market help refugees socialize with the natives in the process fostering integration.

One of the most recent studies of the problem of sociocultural and economic integration of refugees in the host community is done by Vogiazides and Mondani (2020). In this work authors are assessing how the regional and neighbourhood contexts can influence refugees’ integration on the labour market through employment. The study focused mostly on refugees who arrived in Sweden between 2000 and 2009. The study proves that the good economic situation and stable socio-economic position of a region matters when it comes to employment opportunities for refugees.

The study also reveals that in many peripheral residential areas, where the density of inhabitants is low, refugees have fewer chances of getting employment compared to the areas characterized by high density of population. The study compares two Swedish cities, Malmö and Stockholm, and concludes that refugees remaining in Malmö have lower probability of entering the labour market compared to those in Stockholm. This is because there are a lot of contacts that can be made in densely populated areas (Stockholm) which supports “entering into and progressing in the labour market” (support employability) as compared to those in low density areas (Malmö) (Vogiazides, 2020, p.4). This study proves that the actual location of refugee residence plays an important role in the process of finding employment in the labour market, hence not entirely mirroring the personal abilities, skills and intellectual capital of the individual seeking refuge and undertaking the attempt to integrate.

In addition, studies by Musterd et al. (2008) and Wimark et al. (2019) present similar findings while supporting the claim that refugees living in deprived neighbourhoods have more often problems with employment and income prospects. Bevelander and Lundh (2007) also found that municipalities that have high industrial activities such as manufacturing and whose surrounding community has lower levels of education can have more job prospects for refugees than those municipalities with low industrial activities.

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Other researchers have argued against densely populated areas as the best to support integration of refugees. They argued that smaller cities or residential areas are better as they provide refugees with more opportunities to interact at lengthy with the local community members in the process fostering economic integration through employment (Waters and Jiménez 2005; Hugo and Morén-Alegret 2008).

On the other hand, a study by Vogiazides and Mondani argued that ethnic separation of refugees can lead to segregation in the labour market participation. Geographical location of refugees therefore, plays an important role in refugee integration in the host community and determines chances for refugees’ being absorbed by the labour market and avoiding segregation and exclusion on the labour market. Employment is regarded as an important aspect of social and economic inclusion of refugees who happen to be a minority and a disadvantaged group of people in the host community as it equip refugees economically and feel part and parcel of the host community’s development (Vogiazides and Mondani, 2020). These studies are in conformity to the theories by Van Tubergen which assumes the role of resources/capital that refugees have for easier integration in the host community, my study in the process will attempt to assess this proposition regarding the importance of capital towards refugee integration.

The study by Bevelander (2011) on refugee employment and integration by admission status in Sweden adds social capital as another important aspect for refugee integration. Further, he argues that social capital such as a refugees’ social network explains the differences in successful or unsuccessful prospects of employment and the refugee integration on the labour market. Those among the refugees who already have family or other networks in the host community, have even bigger chances for successful search of employment because they can expect and receive informal help: information about the organization, legislation and most promising and effective recruitment processes on the labour market, while those without such supporting networks find it hard to get absorbed by the labour market.

The above study is similar to the study by Hosseini-Kaladjahi (1997) on the Iranians living in Sweden which highlights the importance of employment when it comes to integration. The study argues that refugees are able to integrate both socially, economically and culturally at work in the host community. The work environment becomes a place which helps to understand better the

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society and the people of the community in which they are living. In addition, employment facilitates the creation of life-time networks which is an important asset to every individual in life (Hosseini-Kalandjai 1997, p.129). My study will assess this proposition on the role of social networks in refugee labour market integration. My study will further explore other resources necessary to refugee integration such as language acquisition, the period of stay in the host community as well as having local qualifications such as diplomas and other skills that can enhance employability arising from the discussed theories above.

According to a study by Lundh (2005) the level of education of refugees gives them an additional advantage on the labour market in the process of employment searching. However, as Lundh points out, having a foreign education alone is not enough to fit into the host society labour market. Similarly to Bevelander, he stresses the importance of having a Swedish education, or Swedish diploma or competence recognition, for smooth integration into the labour market (Bevelander, 2010). Similarly, Magnusson’s study indicates that obtaining a Swedish degree enhances refugees’ chances of being absorbed by the labour market rather than depending only on a foreign qualification. As Magnuson points out, this is probably due to the fact that “Swedish employers feel uncertain of the content and quality of that [foreign] education” (Magnusson 2014, p.22). The study further reveals that the better knowledge of the language the bigger the chances for the refugee’s integration into the Swedish labour market. These findings have helped shade light to the specific research questions asked regarding factors that affect employability of refugees in terms of language and it will be engaged at length during the discussion.

A study by Hartmut Esser (2006) found that language plays a huge role in individual and societal integration as it is used on everyday communication and it is cardinal in education and labour market as a medium for the exchange of knowledge. At the same time language gives a sense of belonging or foreignness, therefore language too can enhance discrimination on the labour market. This study therefore, gives an importance of knowing the host community language for easier integration into the host community's labour market and fosters employability.

Studies done by both Hatton (2011) and Bakker et al., (2013) indicates that there are a lot of issues that can affect refugee’s integration into the labour market such as the lengthy and

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cumbersome process, health related issues as well as the loss of human capital upon arrival in the host community.

In conclusion, studies conducted so far on labour market integration in Sweden have mainly focused on residential issues as well as Swedish language skills from a sociocultural and economic integration point of view. My study therefore will focus on assessing the major successes and challenges of the refugee integration policies in the Swedish labour market from a socioeconomic view point (employability).

3. THE SWEDISH LABOUR MARKET

This chapter presents the specificity of the Swedish labour market and both its role as the key sphere of refugee employability as well as the policy field. The section will explain the socio-economic importance of work, which will be followed by the description of types of labour market opportunities available in Sweden in order to provide understanding of the choices that refugees have in the Swedish labour market, then it will highlight on different actors as well as their functions in the Swedish labour market along with the available relevant legislation and legal acts. This is crucial for better understanding of not only why work is so important as an element in refugee integration but also how social security supports this process drawing on the legislation and policies influencing refugees labour market presence.

Among the main challenges that refugees are faced with in the contemporary labour market is finding a suitable job – the problem which is quite recognized in Sweden, the country has focused on creating the labour market as inclusive as possible for all stakeholders in all sectors of the economy (Peromingo, 2014).

Work from the perspective of economics is often viewed narrowly, as merely providing purchasing power but “sociology emphasizes the centrality of work, per se, to individual well-being” (Gill 1999, p.725). Work has cardinal importance to humans as it is a central activity and a main source of identity in society (Tausig and Mark, 2013). Work gives an individual the sense of belonging not only to an institution or a company but also, in a wider perspective, to the

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community; it may be not only the source of personal pride but also a main source of income. At the same time work is important for socialization, social networking and social integration (ibid). According to the Economic Times (2020), labour market is regarded as a “place where workers and employees interact with each other”14

. There is obviously competition that goes on in the labour market: while employers are looking for the best people they can hire, at the same time employees too are looking for satisfying job opportunities available on the market.

One of the sources of the problems which refugees have to face on the labour market seems to be combined not only with the language or some new or different formal regulations but the fact that “the design of jobs, physical environment, and the core structure of human relations at the workplace are largely the domain of managers guided by their own cultural outlook, operating as the agents of the shareholders” (Gill 1999, p.736). This makes refuge integration a complicated amalgam of economic, legal, social and cultural aspects.

The Swedish labour market operates on labour duality: there are tradable areas of the labour market associated with the private sector and non-tradable areas represented widely by the public sector, which encompasses services and basic provisions (healthcare, education, military and police) and usually financed by the state or local authorities. Calmfors et al. (2017) claim that Sweden is, in fact, doing better on a non-tradable than tradable sector which gave a rise in the economy due to the high demand of the services from the locals. However, Calmfors et al. (2017) further note, that there has been and still is a shortage of labour (man power) on the labour market both in the public and private sectors. “The Labour Market Tendency Survey 2019 shows a major shortage of nurses - mainly specialist nurses. There is a continued shortage of teachers in many areas of specialization. At the same time, there is a shortage of recent graduates with upper secondary vocational education. Employees report reduced shortages from certain educational programs compared with last year”15

. This has been a result of difficulties encountered by skilled labourers more especially those, who are foreign born (refugees) entering the Swedish labour market.

14 https://economictimes.indiatimes.com/definition/labour-market (accessed on 31.03.2020) 15 https://www.scb.se/en/finding-statistics/statistics-by-subject-area/education-and-research/analysis-trends-and- forecasts-in-education-and-the-labour-market/labour-market-tendency-survey/pong/statistical-news/labour-market-tendency-survey-2019/

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Workers in the Swedish labour market are well protected by legal regulations in both the public and private sectors - which is important to avoid suppression and abuse at workplaces and in the labour market in particular. Historically, since the 1950s onwards, Sweden has been an international pioneer in the process of promoting and improving work conditions and creating labour relations focused on equality and justice. One of the most important effects of this process was a set of regulation and agreements regarding the relationship between labour market stakeholders “Swedish model”16

. 3.1. The Swedish model

The Swedish labour market is based on collective agreements, indeed through the model that arose between 1950s and 1960 as a means to resolve problems on the Swedish labour market through agreements in view of the rapidly growing workforce. The Swedish model “rests on four pillars: strong trade unions, flexible labour laws, proactive policies for the labour market and families, and universal welfare” (The Swedish Confederation of Professional Employees, no date: 1). Each sector, therefore, is controlled by trade unions and employer organizations, all labour market conditions are set and controlled by the trade unions. Workers in the Swedish labour market are encouraged to belong to trade unions as it is their right to freedom of association. Currently the trade union membership stands at 70%, an indication that the majority of workers belong to trade unions17. The Swedish government has little control over the labour market as it is mainly controlled by trade unions. Nonetheless, the government still has a hand in setting boundaries through the labour laws such as the Act on Co-determination at Work (1976, p. 580). Also amid the Covid-19 pandemic, for example, the Swedish government has come up with a Crisis package for jobs, in order to alleviate the impact of the virus on the labour market, an indication of government’s control over the labour market.

The collective agreement is generally “negotiated and signed by the trade unions and employers’ association”18

. This means that an employee does not need to negotiate their working conditions including other benefits that an employee wishes to benefit as it is done between the trade union and the employer’s association, the employee in such cases needs to report to the trade union. The agreement is binding to both the employer and employees and it supplements other labour 16 https://www.industriarbetsgivarna.se/in-english/employers-information/the-swedish-labour-market 17 https://www.thenewbieguide.se/work/labour-legislation/labour-unions/ 18 https://www.sverigesingenjorer.se/anstallning/kollektivavtal/collective_agreement_how_it_works/

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laws related to the labour market. This model ensures that there is a degree of flexibility across all companies in order to promote both economic and employment security in the interest of both the companies and the employees. The collective agreements contain general working conditions for workers and some of the conditions contained include “working time, occupational pension, salary supplements during sick leave and parental leave, holiday pay, insurances, overtime, working environment issues and redundancy processes”19

.

There is no legislation governing the level of wages paid to workers, and as a result employers can pay the workers anything as long they reach a consensus20. However, it is the collective agreement and the individual contracts that stipulate the amount of wages to be paid. This protection and cover by the collective agreement is important to both the employer and employee, including to facilitate agreement between parties, and also to alleviate potential disputes which may arise from the fact that e.g. there is no minimum wage legislation on the Swedish labour market. Crucially, when there is a breach of the collective agreement the party that breaches, is liable to pay for the damages, this applies to both the employees and the trade union. The fear of paying damages helps, however, all/most of involved parties to respect the collective agreement which ensures a smooth operation of the labour market.

3.2. The Key Actors on the Swedish Labour Market

There is a number of institutional actors and bodies who ensure the smooth functioning of various areas of the Swedish labour market and the below sections describe the key features of the key institutions in question.

3.2.1. Arbetsförmedlingen (Swedish Public Employment Service)

First, the Swedish Public Employment Service is a state administrative authority that belongs to the Ministry of Labour, which is in charge of all public employment in Sweden and of monitoring all the policies that regulate the labour market. The Service’s main function is to facilitate contacts between refugees21 and employers by way of providing all market related information. Anyone looking for employment in the Swedish labour market is advised to register 19 https://arkiv.sverigesingenjorer.se/About-us/kollavtal_english/ 20 https://www.unionen.se/in-english/your-salary-and-how-it-decided 21

Migrants and Refugees are among the job seekers being facilitated by this Agency as they are usually detached from the labour market.

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with Arbetsförmedlingen through the registration, refugees will be able to be linked to a job that suits them based on their actual skills22. Labour market is protected also indirectly by the administrative procedures, of which the need to obtain the Swedish identification (personal) number is key. This often has gatekeeping function as it might become difficult for refugees to obtain personal ID number due to various contradictions: one would not be employed without obtaining a personal number yet the number would not be granted to people with no residence. (For which, however, one needs to have gainful employment in order to pay rent or mortgage). This and other such regulation often make migration to Sweden hard or impossible, especially for people who cannot use informal networks and family or friends’ support in order to settle in and formalise their status.

Furthermore, the Swedish Public Employment Service also offers different types of other services to refugees such as opportunities new start-up jobs and subsidies23. At the same time, the institution implements measures that can help refugees match with relevant opportunities in the Swedish labour market. Once an individual registers with Arbetsförmedlingen24 they also become eligible for unemployment benefit from A-kassan. This is important for refugees who do not have enough social networks and the know-how of job seeking on the labour market of the host community to be helped in finding jobs.

3.2.2. A-kassa (Unemployment insurance fund)

A-kassa is a Swedish Unemployment insurance fund whose key role is to take care of people who are unemployed. To qualify for its support, one needs to have first registered with Arbetsförmedlingen (above) which specifies one’s unemployment status based on whether one is available to work at least 3 hours per working day and an average of at least 17 hours per week with an employer. This institution then pays a certain amount of benefit money to an individual who is unemployed until such time that the person finds a job.

The main idea is to help refugees have a steady and reliable source of income during the job search period. Given this desire and related institutional set up, the International Labour

22

1 of the Ordinance (2007: 1030) with instructions for the Employment Service. 23

Olle Frödin & Anders Kjellberg (2019), The role of employee contributions in trade: A comparison with the industries hotel and restaurant, cleaning and staffing (on entry jobs, new start-up jobs, payroll, extra services and other forms of support). Stockholm: Trade Council. Research Report 2019: 6

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Organization’s (ILO) report of 2016, categorizes Sweden as one of the top countries with the best unemployment benefit scheme though this is to some extent logical allowing that the financial support to the unemployed needs to be pretty generous since Sweden is also one of the most expensive countries to live in. Therefore about 21% of the refugees in Sweden receive their benefits from A-kassa25.

3.2.3. Employee and Employers’ Organizations

The Employer’s Organization is another institution active in the Swedish labour market. It offers work-related advice to employers in terms of legal advice as well as the interpretation of contracts or agreements for workers on the Swedish labour market. The employer’s organization is in the first place involved in negotiations on behalf of the employers and while considering rights of employees and working out conditions together with the trade unions representing them. The Employers’ Organization also analyses the economic situation on the market and offers ongoing advice about the labour market situation to policy makers on behalf of the employers26. This is important as it shows the kind of security and protection available in the Swedish labour market, which guarantees refugees, safety from abuse by employers at places of work, in terms of working conditions since the employing organization is not the one that sets conditions of employment but these are regulated more widely including by a specific institutional set up. On the employees’ side, on the other hand, the trade unions play an immense role in protecting the rights of the workers. In addition to many branch specific institutions and organizations, all workers in white collar jobs in the private sector are also represented by Unionen. The latter encourages all workers – including those in the civil service – to belong at least to one trade union for their safety and security in the Swedish labour market. The role of the trade unions is largely positive as their job is to protect workers’ rights and to safeguard the fulfilment of collective agreements.

3.2.4.Försäkringskassan (Swedish Social Insurance Agency)

The Swedish Social Insurance Agency plays an important if not indeed central role in the Swedish labour market. Anyone who lives or works in Sweden is covered by the social security 25 https://www.forbes.com/sites/niallmccarthy/2018/07/23/in-many-countries-only-a-minority-of-jobseekers-receive-unemployment-benefits-infographic/#7228519748c2 26 https://knowledge.leglobal.org/employers-associations-and-trade-unions-in-sweden/

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insurance27. The sole purpose of the agency is to provide financial security to workers in cases of uncertainties or to support families at different stages of life. Being a national insurance, it decides and offers the large part of the benefits to workers who are undergoing for instance, an illness, those with disabilities and those with dependent children and families (e.g. via various forms of parental leave etc.)28.

As has been shown, there is quite a number of actors in the Swedish labour market, however, the above-mentioned actors are especially relevant and of great importance to understanding the chances of refugee integration into the Swedish labour market.

3.3. Legislation relevant to the Swedish Labour Market

There are two key types of legislation that are important to consider when discussing the Swedish labour market: The Co-determination Act of 1977 and the Employment Protection Act of 1982.

The Co-determination Act29 specifies a number of rules that concern the working relationship between the company and the employee’s trade union organizations. The act allows all involved parties on the labour market to come to more detailed agreements in regard to their work, this is facilitated by the introduction of collective agreements which contains worker’s right of association, extended right of negotiations as well as extended right to information.

On the other hand, the employment protection act30 was introduced in 1982 to regulate all matters that relate to employees’ agreements such as their working conditions at places of work. The main aim of the act is to protect employees from losing their employment. The act stipulates the commencement of employment and the end of employment details. However, the act limits the rights of the employers in terms of the longevity of employment as it is against the employer offering a limited period of employment to its workers, instead, it advocates for an indefinite employment. The act further provides a provision that must be followed by the employer in cases

27

Although some benefits are not available for migrants if one needs the support in family matters (one can get the support only for those with Swedish person number –in case of parents or siblings, who are not register in Sweden, this support is impossible)

28 https://www.forsakringskassan.se/ 29 https://www.industriarbetsgivarna.se/in-english/employers-information/co-determination-at-the-workplace 30 https://www.industriarbetsgivarna.se/in-english/employers-information/the-employment-protection-act-and-other-employment-protection-issues

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of employment termination, equally stipulates damages in situations that there is a breach of contract by the employer.

These two Acts are important in refugee integration as they stipulate the limits to both the employer and employees and lays down the procedures of resolving disputes in the labour market, this assurance is important to refugee integration as it gives them rights as workers in cases of abuse and threats to caseation of employment knowing that they are refugees (in cases of discrimination at place of work by the employer).

4.0. SWEDISH INTEGRATION POLICY

This chapter endeavours to present the Swedish Integration Policy. In this section I will begin by explaining the background to the Swedish integration policy of 2009, and then present the policy itself and some of the actors of the Swedish integration policy. The presentation of the policy is cardinal to understanding how refugees integrate not only socially, culturally, politically but also economically into the Swedish labour market being the core of this thesis.

Integration is concerned about “bringing together all smaller components into a single system that functions as one”31

. There are so many aspects of integration, therefore, policies may differ according to the aspect of integration a country wishes to address, at times a policy can address several aspects such as “cultural-, communicative-, or labour market integration” (Lundh, 2005, p. 51). This thesis takes on the labour market integration from a socio-economic point of view in the Swedish market. Among the many OECD country members, Sweden is ranked among the top most countries in terms of its openness and liberal migrant integration policies as they offer equal opportunities to refugees on the labour market (OECD, 2011). This results fro m the introduction of the 2009 integration policy.

The Swedish government started way back in 1950s to find a lasting solution to better integrate refugees in Sweden due to the difficulties they faced in the labour market (Ekberg, 2007; Brochmann and Hagelund 2011). The State Immigrant Agency was founded in 1969 with the

31

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sole purpose of managing migration and integration of refugees but policies were more general in nature. Hence, In the 1990s integration policies started changing from general welfare policies to specifically address refugees as a special group whose in need of special attention (Boguslaw, 2012). Furthermore, in 1997 the Swedish Riksdag decided to come up with an integration policy. This policy came in the form of a Government bill, the future and diversity changing from being just an immigration policy to integration policy (1997/98, p.16). “The point of departure for integration policy is that general policy should be based on society’s ethnic and cultural diversity. It should encourage individuals to support themselves and take part in society, safeguard fundamental democratic values, contribute to equal rights and opportunities for women and men and prevent and combat ethnic discrimination, xenophobia and racism” making the three core objective of the integration policy (Ministry of Industry, Employment and Communications, 2002,p.1). Further, the report indicates that integration takes place at both individual and community level, therefore everyone's involvement towards refugee integration is cardinal. Henceforth, in 1998 the Swedish Integration Board was instituted whose key role was “developing introductory procedures for new refugee arrivals, of promoting integration and monitoring the situation and progression of integration policy objectives within the various sectors of the Swedish society” (Ministry of Industry, Employment and Communications, 2002, p.1).

However, there were debates as to whether the Integration policy should take on the assimilation perspective or to uphold refugees’ cultural identity which would promote multiculturalism (Borevi, 2013). This debate was more dominant in the 1960s as a result of refugees’s “demand for more opportunities through practicing their language and culture”(Lundh, 2005, p.51). During this period the integration policy did not have a clear goal and direction (Bevelander, 2010). The multiculturalist approach was adopted but later on came to be abolished in 1986 due to its perceived decrease in social integration (Borevi, 2013). Hence, the role of the establishment 1997/98 board was to make clear goals for refugee integration in Sweden.

In order for the policy to be successful, a number of issues to be taken care of during the integration programme were raised, among the notable ones were the following; 1) The way new arrivals are taken care of was to be revised and improved upon, this called for the empowerment of all municipalities by receiving funding from the government. Municipalities’ main role in

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refugee integration was to be in charge of introducing refugees to the Swedish language. 2) Putting refugees’ skills and qualifications to use in the labour market was put into considerations, it was agreed upon that in order to achieve this, there was a need to focus the labour market measures to address the needs of refugees at individual level to ensure flexibility and “the government’s investment in supplementary training for people with foreign academic qualifications would continue. Endeavours to increase the labour supply inter alia by combating discrimination and promoting diversity in working life will be intensified” ( Ministry of Industry, Employment and Communications, 2002, p.5). 3) There was a need to revise the educational system for refugees, this was to be done through reinforcement in the teaching of the Swedish language to make it more beneficial to the refugees. 4) With regard to housing for refugees, was a need for a positive development in segregated housing areas in order to “increase opportunities for people of foreign extraction to exert influence and to participate in the life of society” (ibid, 2002, p.6), this is to ensure better participation by refugees in Sweden. 5) The strengthening up of measures to counter ethnic discrimination, xenophobia and racism of 2000/2001, p.59 to allow refugees have freedom of participation in the economy. Another important measure was to create a “Culture for everyone and a dialogue with religious communities” (ibid). Therefore, the policy that came into effect arising from the instituted board of 1997 did away with multicultural policies as it was perceived to marginalize refugees and introduced a policy that promotes homogeneity (Brochmann and Hagelund 2011 ; Borevi 2013).

The Swedish Government in its report Integration Policy for the 21st Century (2001/02, p.129), gives an account of the development of integration policy and its future direction. Sensitization was later made to members of the community (in the country) regarding the integration policy goals which includes equal rights, responsibilities and opportunities for all. The report further reviews that there were disparities that existed between refugees and Swedish-born citizens in terms of employment and in other services on the labour market (ibid). Multiple and complex reasons were cited which included personal and structural situations, among them “the importance of knowledge of Swedish, education, the occurrence of discrimination and length of time the refugee has lived in this country” ( Ministry of Industry, Employment and Communications, 2002, p.4). The 21st Century policy’s main focus was on general labour market in the Swedish market, this was propelled by then the Centre-Right coalition that was in

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power who were interested in the labour market integration drifting away from “using general policies as its main tools for integration” (Brochmann and Hagelund 2011, p.21).

The main purpose of the 21st Century integration policy was to level down the Swedish labour market so as to give value to individuals regardless of their background, in the process there would be opportunities and equal participation by everyone including refugees in the labour market (Ministry of Industry, Employment and Communications, 2002).

The 21st Century integration policy paves way for the current integration policy which came into effect in 2009. The main objective of the current Swedish Integration Policy is to promote the socio-economic inclusion and independence of immigrants within the Swedish labour market (Boguslaw, 2012, pp. 254-256). Its main focus is on the economic integration of refugees, this came as a result of the growing differences in employment rate between the natives and the refugees whom in the period 1950-1970 refugees had a higher employment rate on the labour market compared to the Swedes (Lundh and Ohlsson 1999, p.113) but the opposite came to happen in 1990 to date as a result of recession (Bevelander 2010, p.295).

Reforms were made that saw the Ministry of Employment being responsible for refugee reception and labour market introduction (Boguslaw 2012, p.232). The goal of the integration policy is to advocate for equal rights, obligations and opportunity for everyone irrespective of different ethnic or cultural background of refugees. In the quest to achieve this objective, seven key areas were identified which ranges from “1) the faster introduction for new arrivals 2) More in work, more entrepreneurs 3) Better results and greater equality in school 4) Better language skills and more adult education opportunities 5) Effective anti-discrimination measures 6)Development of urban districts with extensive social exclusion 7) Common basic values in a society characterized by increasing diversity” (Regeringskansliet, 2009, p.1).

The most notable issue in the policy is the emphasis on language for smooth entrance into the labour market. The policy under other initiatives proposes step-in subsidized jobs to the unemployed refugees which is combined with the Swedish courses. This policy is being coordinated by the Swedish Public Employment Service working with various government departments such as Swedish Migration Board, county administrative boards and the Swedish Association of Local Authorities and Regions (ibid). The assumption of the integration policy is

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that once refugees are well moulded they can easily be absorbed in the labour market thereby reducing unemployment rate among the refugees and the country at large.

4.1. Key Actors in Swedish integration policy

The policy has not chosen a particular department to be in charge of refugee integration, rather a number of ministries with their already existing roles were requested to add on the integration of refugees to their agendas, therefore each ministry as well as government agency has a responsibility of playing an active role in the integration of refugees in the Swedish labour market (Boguslaw, 2012).

For instance, Municipalities are responsible for schooling and for housing planning. The main responsibility for health and medical services is with the county councils at regional level. The county administrative boards represent central government in the regions. This type of cooperation despite the challenges it may have is important in countering and ensuring a holistic approach towards managing refugee integration in the Swedish labour market.

5.0. METHODOLOGY

The methodology used in this thesis maps the major successes and challenges of the refugee integration policies in the Swedish labour market taking a qualitative approach. The qualitative research approach is the best approach in contextualizing and gaining in-depth understanding of a specific phenomenon as it allows the participants to fully express themselves on a given topic (Babbie, 2014). Furthermore, a qualitative approach emphasizes more the use of words than numbers making it richer in content whilst focusing on meaning-making according to context (Krauss, 2005).

5.1. Data collection

The study is qualitative in nature and relies on both primary and secondary data sources. This entails that aside collecting data from documents and books (i.e. secondary sources), more primary data was also collected, especially by means of contacting refugees themselves and gaining insight into their own first-hand accounts and experiences of the integration process as well as of the working of policies governing the Swedish labour market to foster refugee

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employability. Introducing a dual primary and secondary approach to data was meant to ensure data validity by having different voices from the refugees themselves (Mikkelsen, 2005).

The primary data was collected using a Survey through online platform (SmartSurvey) with input from the refugees themselves. The survey contained open ended type of questions to allow respondents fully express themselves. It was shared using a generated online link

(https://www.smartsurvey.co.uk/s/6XMWCV/) which respondents shared amongst themselves,

see details below under sampling procedure. The survey was appropriate for the study given the constraints placed by COVID-19 pandemic and the sensitivity of the target group being refugees whom have gone through traumatic events such as fear of political assassination, hence the survey gave them time to process their emotions and think through before answering the questions and it gave them a chance to proof read their responses before submitting. Hence, the study captured more complete contextualized information from the refugees themselves about refugee integration in the Swedish labour market (Polit and Beck, 2010).

When looking for the secondary data, on the other hand, the research entailed identifying literature relevant and central for my research questions. Here, the research relied on a number of search terms and adopted Boolean operators and Truncations in specifying and tailoring the searches in the Sociological Abstract and International Bibliography of the Social Sciences (IBSS). The following search string was central for identifying articles;

Refugee* AND Integration AND Employ* AND Labo* Market AND Sweden Inclusion and exclusion criteria

The search strings were conducted together with certain inclusion and exclusion criterias. The articles that were included in the searches were only those in English. Furthermore, only peer reviewed articles were included in the search. This was done in order to have documents that have been scrutinized by the other experts and has therefore been evaluated and validated before being published. The lingual inclusion and exclusion was done because of the authors’ language being English. Also documents that were duplicates and articles that were discussing migrants in general were excluded as the researchs’ focus was on refugees.

However, the study was not limited to the above articles as the main focus was on a specific refugees integration policy and the labour market, with aim of mapping the successes and