instegsjob

Instegsjobb is a Swedish wage subsidy program designed to promote entry into the labor market for young job-seekers by offering a subsidy to employers who hire eligible youths. The program is administered by the Public Employment Service (Arbetsförmedlingen) and aims to reduce the barriers that first-time workers and those with limited experience face when entering work.

How it works: An employer hires a participant through normal recruitment channels and applies for the wage subsidy as part of the employment agreement. If approved, the employer receives a government subsidy that reduces the employee’s wage cost for a defined period. The employee remains under an ordinary employment contract with the employer, and the subsidy is intended to support the ongoing onboarding, training, and supervision necessary to establish the new worker in the role. The exact duration of the subsidy and the share of wages covered are determined by policy rules, which have changed over time.

Eligibility: The program is targeted at young job-seekers who face particular challenges in entering the labor market, typically including those who are registered as unemployed and meet the age criteria set by policy. Employers participate voluntarily and must comply with program requirements, including providing appropriate supervision and training to the hired individual.

Impact and criticism: Proponents argue that instegsjobb lowers the cost of hiring inexperienced workers and can create lasting employment opportunities. Critics caution that subsidies may subsidize positions that would exist without support, with mixed evidence on long-term effects for sustainable employment. The program reflects broader labor market policies intended to combine training, supervision, and wage support to improve youth employment outcomes.